Offers for ferrous
scrap within US regions are likely to hike by $40/MT Ex mills in the coming
days. Experts say that despite after the hurricane, monthly trade will not be disrupted
in US domestic regions. It looks set to begin later this week with premium
offers from October’s levels.
Few Midwest steel
mills in US are likely to active on scrap buying by this weekend with expecting
prices to settle higher than the previous month’s trades.
According to a Midwest
mill source, “I expect that prices will be up by $20-30/MT, but it could also
reach to $40. I am planning to secure a deal on Friday or Monday.”
The scrap supply
appears to have been limited in the days to come. So, prices are expected to
take a hike of $30-40/MT. Even now supply remains compromised and export yard
buying prices have begun inching up.
But few sources are
doubtful on the expected rise of $40/MT as they feel that a $40/MT boost is too
high, since mills may not be able to pass through the raw material increase to
their finished steel buyers.
Still, it's too early
to predict where the November markets will settle. But most of the market
participants agree on one thing: wherever the markets settle, they will accept
it.
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