October’s market has
officially begun, and negotiations to establish this month’s pricing are in progress. During the first week of each month, referred to as “The Buy,” our team negotiates with steel mills to secure purchase orders for all ferrous grades. The remaining three weeks are then focused on fulfilling these orders. Various factors, including supply and demand, mill outages, export demand, weather conditions, and the availability of freight and cost, impact these negotiations. At BL Duke, we prioritize shipping point pricing and take full advantage of our ability to ship materials via truck, rail, and barge.
October’s U.S. ferrous scrap market is anticipated to mirror September, with a strong-sideways outlook influenced by both positive and negative factors. On the positive side, scrap metal supply remains tight, export demand is consistent, and the upward trend in the futures market suggests potential stability.
That said, challenges persist. HRC prices are hovering in the low $700s per short ton. Significant mill outages are scheduled in key regions such as Chicago, Pittsburgh, Texas, and the Carolinas, each facing two major outages. Additionally, five outages are set for the Arkansas-Tennessee region. These disruptions are expected to weigh heavily on scrap demand, leading to a more stagnant market through October. Most of these outages are anticipated to wrap up by late October, with only a few extending into November and December, which could signal some improvement once production resumes.
