Detroit steel mills send scrap prices soaring

Aug 01, 2012 | 05:29 PM | Sean Davidson

Tags  scrap, Sean Davidson

NEW YORK — Steel mills in Detroit set ferrous scrap tags on fire Wednesday as strong demand and the need to secure supply sent prices skyrocketing.

Mills in Detroit entered the market late Tuesday and early Wednesday with big order books, with one mill indicating a nearly 50-percent increase over its normal monthly buy.

The surge in August demand coupled with stagnant scrap flows brought to an end a significant two-month decline, which had taken prices down about $100 per gross ton on average, to lift all grades $75 per ton for August.

After three mills entered the market with buys that were up $75 on heavy melt scrap, shredded scrap, plate and structural scrap, and prime scrap, a fourth consumer was forced to follow suit despite waiting for what it had hoped would be a possible softening after the initial spike.....

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