Approaching March trading, more US scrap market participants seem bullish about March pricing in the domestic market. Recent increases seen in pig iron prices amid growing tensions between Ukraine and Russia are supporting this expectation. Mills are expected to show stronger demand for scrap, specifically prime grades, rather than pig iron.

Towards the end of last week, following fresh Brazilian sales, pig iron offers increased to $560/tonne fob Brazil levels.

A scrap supplier tells Kallanish: “There have been remarkable price falls in prime grades in January and February. Although I am not expecting domestic scrap demand to fully recover, current market conditions point to a rise in prices for all scrap grades.

“Prices for all grades will definitely rise during March trading. I would say $20/gross ton at minimum. It could be up to $50/gt,” says another supplier who is not rushing to sell now.

US mills, which doubted price rises in previous weeks, are now seen to be convinced. “A rise seems inevitable now,” says one US mill source. “But I don’t think it will exceed $20/gt for any grade. Suppliers are suggesting price rises in export destinations but demand has slowed there too.”

On the West Coast, US-origin containerised HMS 1&2 80:20 prices are seen to be under pressure now after reaching $490/t cfr Taiwan last week.

On the East Coast, no deep-sea bookings were heard in Turkey last week following a US-origin deal at $507/t cfr Turkey the previous week. Although US suppliers are targeting to sell HMS 1&2 80:20 at above $510/t cfr, this level is found unacceptable by Turkish steel producers who are suffering from weak rebar demand in both export and domestic markets.