RMU Survey: Is the scrap market in balance?

When reviewing RMU’s monthly sentiment survey, the hot topic was staring us right in the face. Where is the balance in the market?

The question, “Do you see the scrap market being in balance now, given supply and demand?” With the majority, 55%, of the survey responders don’t believe the market is in balance. Comments from manufacturers “Demand is slightly lower than scrap return. Export is helping keep scrap pricing stable and higher than it should be”. Processors have commented that “Supply is short”, while traders and brokers stated “Global steel demand is depressed. May see a pick-up in Q4”. The consensus is that Q4 may experience a rise in steel scrap demand.