US scrap prices down again

Ferrous scrap prices are expected to fall further in October, repeating September’s downward trend, according to Fastmarkets.

The agency reports its Trend Indicator slipped to 40.1, pointing to an expected 3.6% month-on-month decline in scrap prices. This compares to a 2.6% drop recorded in the previous month.

Lower demand

Market participants talking to Fastmarkets cited lower demand as the primary driver of the downturn. Inventories remain slightly below average at 43.3, emphasising that supply-side constraints are not expected to provide price support.
‘The dominant sentiment is shaped by declining mill demand and macroeconomic headwinds,’ the agency said.

Meanwhile, US Census Bureau trade data will not be updated until after the current government shutdown. The announcement came on the bureau website on 7 October. Data is published with a 60-day lag, so the delayed information will reflect August’s trade data.