Chicago scrap market worst hit as buys wane

Sep 07, 2012 | 06:25 PM | Sean Davidson

Tags  ferrous scrap, scrap prices, busheling, bundles, heavy melt, Chicago scrap market, Sean Davidson

NEW YORK — Weak demand from several steel mills in Chicago and its neighboring regions made last month’s strongest market this month’s weakest as ferrous scrap prices for September sank more in Chicago than in any other region.

Market participants said several mills had significantly reduced buying programs for September, with one large consumer reportedly out of the market entirely.

Early trades in the Chicago region in the days preceding and immediately following the Labor Day holiday attracted the best prices, with the market having since quickly deteriorated.

According to sources in the market, demand for No. 1 bundles has been virtually nonexistent this month, even as Chicago-area buyers showed modest interest in No. 1 busheling scrap. The overall decline in orders for prime scrap sent final prices for both grades down $33 per gross ton to $382 and $387 per ton, respectively. Sources reported some trades on either side of those levels but said trading ranges were more disciplined this month, falling within a $5 to $10 window vs. the $20-per-ton differentials in the buying ranges recorded for August.....