The US ferrous scrap market faces a possible price downturn in March as warmer weather is expected to improve supply conditions, while suppliers struggle to deliver lingering orders for January as well as new orders for February before the end of the shortest month.

Platts, part of S&P Global Energy, assessed No. 1 busheling prices unchanged at $445/lt delivered Midwest and $450/lt delivered Southeast Feb. 13, while shredded scrap prices held steady at $450/lt on a delivered basis in both regions.

Plate and structural scrap prices were assessed at $430/lt on both a delivered Midwest and delivered Southeast basis Feb. 13, while heavy melting scrap prices were assessed at $405/mt delivered Midwest and $400/mt delivered Southeast.

A scrap dealer in the Midwest said order volumes from mini mills across January and February would likely exceed what is paid for actual deliveries, which could affect scrap prices in March.

“The direction of trading in March will hinge on how many cancellations are issued at the end of February,” the dealer said.

“Fundamentals would suggest that scrap prices have probably peaked. With temperatures in the Midwest in the 60s next week, there can be no more excuses around collections.”

A scrap dealer in the Southeast said they expected prices in March to be flat or lower by $10/lt from February price levels for some grades, as the uplift in February was mainly driven by supply rather than demand.