Scrap Update – Post Final
Chicago Shredded Scrap posted the final yesterday for February at $450/ton, up $30/ton from January, bolstered heavily by tight collections in January due to weather. The upward move is the 3rd consecutive month of increase, totaling $80/ton in the 90-day span. The move is not unlike last year’s spike, which saw a $90/ton increase over 4 months to start the year. History suggests that this may be the peak of the run, and this latest bump was related largely to severe weather that plagued most of the US to start the year. Most expect March scrap to be sideways or possibly even begin a retreat. As such, mills appear to be hesitant to try and push pricing higher, especially in the face of import offers and an increasing domestic rebar supply. Mills have only started to realize January price gains, which curbed the intake of new orders and drove buyers to consider import offers that remain consistent. Many feel a follow-up move would have a similar and stronger reaction in the market. We will continue to monitor any news that impacts rebar and report events that affect the rebar market.
Have a great week!
