The domestic ferrous scrap sector in the United States is enjoying renewed strength that is expected to continue through September - and possibly longer - due to a robust export market, constrained supply and improving steel mill run rates that have created a sellers' market.
"Mills have been out of the market and have burned through inventory and will have to come back for a lot more. The blip of downside that happened when the return of supply outpaced demand in July is over," a Cincinnati recycler, who expects September prices to increase by $20-30 per gross ton, told Fastmarkets.The overall trend in the Midwest of a downward $20-per-ton adjustment on prime and no change on other grades only reflected half of the story as mills and sellers were quickly caught off guard by the tightening of obsolete grades such as No1 heavy melt, shredded scrap and plate and structural scrap.Prices for the obsolete grades remained unchanged in the Midwest, but quiet deals at premium prices were said to be rampant.Other sellers chose to hold on to their material on the expectation that mills would return - and pay higher prices - following the official trade...