Factory bundles prices rise $15 a ton for December

Dec 03, 2007 | 07:53 AM | Michael Marley

Prices paid for the auto industry's factory bundles rose an average of $15 a long ton in buying that ended late Friday as steelmakers fought to secure supplies of prime industrial scrap.

Those purchases took the average price of the AMM Factory Bundles Index to $298 a ton for December, recouping part of the $25-a-ton decline seen last month.

The buyers included both integrated steelmakers and the mini-mill producers of flat-rolled steel, industry sources said. Some were said to be actively seeking the bundles to ensure a supply of higher quality steel scrap in the face of possible dealer resistance to selling much metal this month.

One Detroit-area broker said some mills were seeking the auto bundles this month because they fear dealers won't have much scrap to sell or might be unwilling to sell. Some mills have been operating with lower scrap inventories than in the past, he said. At the same time, he added, there is strength in the domestic steel market because of the low level of steel imports.....