Scrap prices back near Sept. levels in Detroit

Nov 05, 2012 | 05:05 PM | Sean Davidson

Tags  scrap, ferrous scrap, steel, sean davidson

NEW YORK — Domestic ferrous scrap prices look set to record larger-than-anticipated increases in the Midwest this month after steel mills in Detroit settled $55 per gross ton higher late Monday.

Previous indications that Detroit could settle $40 per ton above October prices went by the wayside late Monday after suppliers held their own against mills who felt that the market warranted a smaller increase, AMM understands.

By Monday afternoon, all but one consumer in the Detroit area gave in to supply-side fundamentals to settle at a $55-per-ton increase for November across all grades. "The $55 increase was kind of a compromise number. Suppliers wanted up $60, consumers were holding out for up $50 and then everyone finally settled at up $55," said one source in Detroit.

A second source, however, said that the final increase was not reflective of actual steel industry performance. "The market should have been up $20 to $30 for November. It went up $55 because dealers scared consumers about supply in December and maybe some mills are short of scrap," he said.....