APRIL 2024 – Market Update
Even though one domestic steel mill issued a cancellation notice for their March purchase orders on Easter Sunday, it appears that the domestic steel mills finally concluded that it would be counterintuitive to attempt any further price drops at the same time they are raising the base price of their flat-rolled products. As of the close of business on Friday, April 5th, the domestic steel mills had mostly concluded their April buying programs at sideways prices for prime, shredded, P&S, and HMS across the country. Without a significant increase in scrap flows, scrap ferrous prices for most grades are expected to be range-bound to slightly above April levels, given that domestic demand is not decreasing.
LME aluminum prices have gradually increased $212 MT over the last 30 days, while LME nickel prices have bounced up and down trading in a fairly narrow range finishing down $130 MT during the same period. Comex copper prices have continued to surge during the last 30 days finishing up $0.35 lb.
Increased domestic competition with Asian and European consumers for tight world supplies of bare copper units have driven scrap prices up close to $0.60 lb. to $4.21 lb. in the last 60 days. Prices for ICW’s and red/yellow brasses have followed the price increase in Comex copper with increasing demand.
Aluminum scrap prices for extrusions have increased a few cents a pound with stronger domestic mill demand and the Midwest premium continuing to increase rising to just under $0.1930 lb. Segregated alloys’ prices have held steady during the past 30 days with the price of 6061 scrap rising $0.06 lb.
Despite LME nickel falling only $130 MT during the last 30 days, the news from domestic mills has not been favorable to scrap prices. Recent optimism for higher scrap prices has been tempered by weaker mill downstream demand for their finished products.
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