March snowstorm melts Chicago scrap standoff

Mar 07, 2013 | 06:16 PM | Sean Davidson

Tags  ferrous scrap, scrap prices, snowstorm, stalemate, Sean Davidson

NEW YORK — A snowstorm was all the Midwest ferrous scrap market needed to end a trading stalemate as most major markets settled March 7 after an earlier inability to reach a consensus.

A standoff in Chicago and northwest Indiana between mill buyers hoping for increases of $20 per gross ton or less over February levels and suppliers holding out for significantly more began to dissipate March 5 as a snowstorm bore down on the Midwest.

Market participants said the bulk of the trading was done over the next two days, with Chicago settling stronger than St. Louis on a few grades, including No. 1 heavy melt and No. 1 busheling.

In Chicago, price trends differed depending on the buyer and seller, but there was a strong consensus range on price as the market normalized varying price swings seen in February.

No. 1 busheling settled at $423 per gross ton in Chicago, up $43 from February, while No. 1 bundles managed a $38-per-ton increase and settled at $412 for March. ....

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