September 2019 | Steel Scrap and Metallics Forecaster
US scrap becomes a buyers’ market as weak demand puts mills in driver seat: North America Market Analysis
Weak vehicle output is only one of several weakening economic indicators in the US, all of which ultimately are having a negative effect on scrap demand.
US domestic scrap markets underperformed our expectations as prices plunged $30-40 per long ton in September negotiations. HMS and shredded prices fell by around $30 in Chicago, with similar dynamics seen in both Pittsburgh and Philadelphia. Prime scrap saw particularly sharp price declines, with rates down $40 in domestic settlements for Chicago, squeezing the differential between busheling#1 and shredded to just $10, the lowest seen since April 2018.
As the first chart shows, the drop in the differential comes despite a squeeze to US vehicle output. Combined US car and commercial vehicle output, as defined by Oxford Economics,...
ACCESS RESTRICTED
You must be a paid subscriber to view the full content.
Content over 60 days old can only be accessed by subscribers.
Call +44(0)20 7779 8000 with your credit card details or subscribe online.
SUBSCRIBE
Receive unlimited access to all current and archive content going back to 2008 including downloadable pricing data and forecasts. Plus download the latest issue as soon as its published.
Subscribe