The "Cash for Clunkers" program will have very little material impact on the scrap supply system, two mill buyers said Monday at AMM's Steel Scrap and Raw Materials Conference in Charlotte, adding that they also expect next year to be a welcome improvement over 2009.

"The U.S. should produce 60 million tons this year and half is (electric furnace, which is highly scrap dependent). So 750,000 tons is less than a thirtieth of the need in the marketplace (if 60 million tons is produced)," according to Toby Powell, purchasing agent at Steel Dynamics Inc. (SDI), Fort Wayne, Ind. "It (Clunkers) may displace some scrap, but should not have any material impact. I think the inflow will be a gradual thing. I don't see a real marked effect on scrap."

H. Allen Grow, sourcing manager of...