SEATTLE (Scrap Monster):  The steelmakers and scrap metal recyclers across the globe noted that the steel industry and ferrous markets registered slow recovery amidst uncertain circumstances due to Covid-19 impacts. By and large, there has been a notable improvement in market conditions in June, compared with April.

According to them, inadequate supply conditions led to a rebound in scrap prices in the U.S. during the month of May. The prices remained more or less stagnant in June, with some exceptions. For instance, prompt scrap prices surged higher by nearly $14 per ton, rising for the second month in a row. The market anticipates drop in prices in July, mainly driven by weak domestic demand situation.

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Meantime, scrap export bids out of U.S. Pacific coast recorded surge in late-May and early-June. The export bids on the U.S. Atlantic coast remained more or less stable. The prolonged lockdown in India muted the U.S. east coast demand.

The ferrous scrap market is expected to remain supply-driven. The scrap prices are likely to remain robust, as Turkish buyers re-enter the market after Covid-19-related restrictions. Also, the market looks forward to India, which is gradually opening up its market after toughest lockdown since the middle of March.