Demand uptick set to boost US steel scrap prices in January
North American ferrous scrap prices in January are expected to build on recent gains amid strong demand following the year-end inventory rundown and tight supply, according to the latest Scrap Trends Outlook.
Increasingly positive sentiment pushed the Trend Indicator further into positive territory at 70.5 for January compared with 55.2 for December. The Outlook’s prediction model suggests a potential for ferrous scrap prices to rise next month by 8.3% on average. Learn more in the US Scrap Trends Outlook: January.
Well over two-thirds of respondents expected prices to trend higher next month, with around half of respondents forecasting stronger demand, while just over a quarter pointed to lower supply.
Steel mills replenish inventories ahead of New Year
Steel mills are expected to replenish languishing inventories following the year-end rundown, and the price of hot-rolled coil is showing signs of a recovery amid reports of healthy order books heading into the new year.
Scrap prices are also set to receive support from slowing inbound flows of material, partly driven by a blast of winter weather in many parts of the country that has hampered deliveries and generation levels. Learn more in the US Scrap Trends Outlook: January.
The overall trend consensus rose to 61% from 51% in December, showing that confidence in the market’s direction has increased.
Make sense of the US scrap market and track the critical indicators impacting price movements in our January outlook.
