Cut ferrous scrap prices rise; mills said stocking

Nov 04, 2010 | 01:09 PM | Michael Marley

Prices on primary steel scrap moved sideways to up by $5 or $10 per long ton this month in a few key steelmaking regions, but offers for shredded and cut grades registered $20-per-ton gains nationwide.

Industry sources said they believe many of the steel mills might be working to amass extra inventory of obsolete materials like No. 1 heavy melt and five-foot plate and structural scrap ahead of their corporate-enforced starvation buying period in December, when many of the publicly owned steel mills close their fiscal year.

At the same time, the order books at many of the flat-rolled mills are said to be weaker, one Midwest trader said. Automotive sales are stronger, but the weak housing market has lowered the demand for construction steel products and its impact on the appliance industry might be offsetting whatever steel sheet demand gains that the mills are seeing from the auto industry, he said.....