Scrap prices in the US have recovered during December trading following seven consecutive months of price drops amid diminished supply, growing sheet prices and rising export prices, Kallanish notes.

Scrap trading, which kicked off on 6 December in the Midwest, saw mills bid at $30/gross ton higher for prime grades and $20/gt for cut grades and shred versus November deliveries. While the South also followed the same trend later last week, the increase has been steeper there, with busheling up $40/gt. The shredded increase, however, was $20/gt, thereby narrowing the premium for shredded over busheling.

On the West Coast, the upward trend continues in Taiwan amid less supply from the US before the Christmas holidays. Following some US West Coast deals at $360/tonne cfr Taiwan for HMS 1&2 80:20 last week and a purchasing price hike by domestic steel mills, offers were at $365-375/t cfr on Monday.

On the East Coast, Turkey’s scrap demand slowed down last week due to the decrease in rebar prices. Although US suppliers have increased offers for HMS 1&2 80:20 to above $390/t cfr, they failed to sell at these levels. The latest US-origin HMS 1&2 80:20 booking was confirmed at $382/t cfr Turkey on Monday last week, although the Turkish market saw higher prices later from Venezuela and the UK.

Although the upward trend in prices seems to be coming to an end, a remarkable fall in scrap prices seems unlikely as suppliers have received respite with the recent sales and the Christmas holidays are about to start.