Miller on scrap: What’s next for February?

The state of the US scrap market is not very well understood, according to the dealer trade. It seems steelmakers in several regions are still looking to buy scrap, several sources told SMU. If this is the case, these sources believe it may not be possible for the scrap buyers to take down the market in February, especially after their failed attempt in January. Such a move “would have no credibility,” one source added.

SMU reached out to another industry veteran. He said the prolonged subzero weather in the Midwest, Great Lakes, and the Ohio and Tennessee Valleys, have hampered deliveries of scrap to area mills. It has also caused a sharp decrease in inbound flows to their yards, as peddler trade is extremely limited. Many yards have elected not to run their equipment in this Arctic weather. All of this is contributing to a market in February that should be no worse than sideways, whatever that means now.

Stephen Miller

Stephen Miller started his career in the scrap metal industry in 1978 at Luria Brothers in Cleveland. Over the last 40-plus years, he has worked in all capacities in the trading business. He has had positions in both domestic and international scrap trading. In addition to scrap, Miller was at the forefront of the pig iron trade and established a pig iron distribution company under the name of Ferrosource, Inc. Most recently, Miller has concentrated on the scrap export market and regularly does consulting for several companies in the industry.