Trade Cases
Scrap Prices Rise in December, Higher Expectations for January
Written by Brett Linton
December 9, 2022
Ferrous scrap prices increased from November to December, according to Steel Market Update sources, breaking the seven-month cycle of price declines. Buyers reported prime scrap prices increased roughly $30 per gross ton, while shredded prices rose $20 per ton.
“Scrap prices are up a minimum $20-30 per ton this month,” reported one scrap executive. He noted that there are quiet deals being done at higher prices, and southern dealers are “insisting on a $30 per ton increase on shredded and HMS”.
Our scrap prices for November are as follows:
• Busheling at $360–400 per gross ton, averaging $380, up $35 from last month
• Shredded at $380–400 per gross ton, averaging $390, up $20 from last month
• HMS at $300–330 per gross ton, averaging $315, up $10 from last month
Buyers expect prices to continue to rise into January due to supply limitations. “Dealers do not have very much inventory, and with winter and the holidays upon us, no way to improve the flows,” said one source. “If you had scrap, you’d be hesitant to sell now at these prices.”
Another source remarked, “Farther down the scrap food chain shredders are already raising feedstock prices $35-50 per ton.” He added that busheling could increase an additional $50 per ton in January.
SMU polled steel buyers earlier this week, asking what their expectations were for December scrap prices. Over half expected prices to remain stable, similar to mid-November expectations. Only 32% of those responding expected prices to increase, compared to 10% two weeks prior.
PSA: SMU members can chart various scrap prices as far back as 2007 using our interactive pricing tool.
By Brett Linton, Brett@SteelMarketUpdate.com
Brett Linton
Read more from Brett LintonLatest in Trade Cases
Breaking News: Trump’s ‘Liberation Day’ brings 10% baseline tariffs; steel, aluminum, and autos/parts excluded
President Trump’s promised “Liberation Day” has arrived, with a 10% minimum tariff on imports. But there are some very important exceptions: The United States’ USMCA partners, Canada and Mexico, are excluded from the reciprocal tariffs for now. In addition, steel, aluminum, as well as autos and auto parts are excluded from the reciprocal tariffs. That’s […]
Price on Trade: Auto tariffs, auto parts, and Hyundai – a world of rapid changes
Trump's new auto tariffs will apply to passenger vehicles (including sedans, sport utility vehicles, crossover utility vehicles, minivans, and cargo vans), light trucks, and certain automobile parts (including engines and engine parts, transmissions and powertrain parts, and electrical components).
CRU: Canacero urges Mexico-US partnership to fend off Asian steel imports
Victor Cairo, head of Mexico’s steel sector body Canacero and CEO of ArcelorMittal Mexico, says he is confident negotiations between the Mexican and US governments planned for April 2 will lead to the creation of a regional block to substitute imports, especially from Asia.
US chassis makers seek duties on imports from Mexico, Thailand, and Vietnam
Upon the request of US chassis manufacturers, the Commerce Department this week initiated investigations into the alleged dumping and subsidization of chassis imported from Mexico, Thailand, and Vietnam.
European Commission eyes stricter limit on tariff-free steel imports
The European Commmission is reducing the amount of tariff-free foreign steel that can enter the EU.