[ferro-alloys.com] Ferrous scrap pricing and scrap dealer sentiment were bolstered this week as US East Coast export prices and volumes to Turkey increased and the few US buyers in the market paid higher prices to secure tonnage.

Obsolete scrap sales were concluded up $5-10/long ton this week with a few prime scrap deals reported up $10-20/lt compared to early-October buys. Market participants indicate No. 1 busheling may be in line for the largest price increase from October to November. While the grade is not in tight supply, dealers have reportedly been holding back tons waiting for larger increases creating a tightness in the supply chain.

"There is definitely a sense that scrap is going to go up before the end of the year," one mill source said. "Whether it goes up November or December or maybe both, we don't know. There is more export activity on track but I don't know if that is able to be sustained. Certainly the talk is there, a lot of talk at up $10-20. If somebody has to go out to supplement their October buy now, they are paying up."

On bids, offers and sales heard in the marketplace Friday, the Platts daily assessment for shredded scrap moved up $7/lt to $365-370/lt delivered Midwest mill.

"There is a lot of positive mojo," one trader said. "Dealers are counting their money for November."

A majority of the spot sales in the market were for cut grades with a majority of shredded scrap dealers not willing to sell this week.

"Most of the shredders are waiting," one Northeast scrap dealer said. "Shredders are waiting and I don't blame them." He was uncertain how much the tightness in busheling scrap had to do with availability, but noted that, "Dealers see the writing on the wall; they might hold back and sell next month."

Dockside scrap prices inched up this week with US East Coast exporters paying $300-305/lt for HMS No. 1 and around $315/lt for plate & structural scrap.