Scrap settles sideways in Midwest, other hubs

Dec 05, 2012 | 06:08 PM | Sean Davidson

Tags  ferrous scrap, busheling, shredded, heavy melting scrap, Sean Davidson, Lisa Gordon

NEW YORK — Steel mills in Chicago, St. Louis and other major steelmaking regions, including parts of the Ohio Valley and Mid-Atlantic, saw no change in ferrous scrap prices this month as sellers refused to consider weaker offers despite diminished demand from several mills.

"Flat as a pancake. Zero change by all," one scrap market source said of December’s prices.

Earlier market expectations of higher ferrous scrap prices in December based on typical seasonal trends meant buyers at most mills were content trading flat, sources said.

There were sporadic reports of some trades trekking about $5 per ton lower in regions like Chicago, but those were viewed as "minor corrections" for suppliers that garnered higher tags in November.

"Any down numbers are probably getting someone back in line that had gotten a bigger number last month for whatever reason," a second source said.

Most sources in Chicago and St. Louis said that early attempts to soften prices even slightly were quickly squashed after sellers refused to relent, forcing both markets to settle sideways by Wednesday afternoon.....