US Scrap Trends Outlook: January

What does 2023 have in store for the US scrap market? Find out today in our monthly US steel scrap price trends outlook

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.

Get the Scrap Trends Outlook now

What to read next
Any bolstering effect on US ferrous scrap exports from the up-month in February’s domestic trade will be tempered in the immediate aftermath of two earthquakes in Turkey — the country’s largest importing region — on Monday, February 6
Steel trading and production have come to a halt in the eastern Turkish region of Iskenderun following a devastating earthquake that hit the region on Monday February 6 and put mills in the area under force majeure, sources told Fastmarkets on Tuesday
A 120-day closure of four Illinois dams scheduled for 2023 will disrupt barge shipments and have potentially both negative and positive impacts on scrap and finished steel products from Canada to Texas
Market participants are cautiously optimistic about a rebound in iron ore concentrate premiums, with steelmakers around the world set to ramp-up production in line with an anticipated increase in demand for steel products, Fastmarkets understands
Fastmarkets has corrected its MB-IRO-0010 Iron ore 63% Fe Australia-origin lump ore premium, cfr Qingdao index, which was published incorrectly on Wednesday February 1 due to a technical error.
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
Proceed