Ferrous scrap market in negotiation stalemate

Mar 05, 2013 | 05:09 PM | Sean Davidson

Tags  ferrous scrap, scrap prices, stalemate, Sean Davidson

NEW YORK — Ferrous scrap negotiations across the country hit an impasse Tuesday as buyers and sellers failed to find common ground on price increases for March.

In the bellwether markets of the Midwest, market participants said many dealers in early talks offered prime scrap at prices $40 per gross ton or more above February levels, while most mills stood their ground with bids at up $30 per ton.

A few low-volume trades were reported in northwest Indiana Tuesday at up $40 per ton on prime scrap, although there was no clear visibility on where final prices would settle, sources said. Bids from mills in the Chicago region reportedly were $10 lower than in northwest Indiana for prime material.

Sources said obsolete grades of scrap are not likely to achieve the same increases as prime scrap this month as the market will attempt to return prime scrap to yield-based premiums over cut grades.

"The mills are hinting at up $30 for shred, up $20 to $30 for cuts and up $40 for prime. We are looking for up $40 to $50 across the board," one Midwest dealer said. "I think we could get some of our consumers to pay up $40, but we are not sure if that is enough."....