Detroit settles ferrous scrap prices down $20
Apr 03, 2013 | 05:10 PM
| Sean Davidson
NEW YORK Uncertainty about scrap prices in the coming months, reduced buying programs by steel mills and a lack of clear signals from export markets combined to send April ferrous scrap prices down $20 per gross ton in Detroit.
Market participants across the United States said steel mills and scrap suppliers have begun testing bids and offers in other steelmaking regions as well, but the Detroit markettraditionally the first out of the doorwas the only market to have settled as of April 3.
Market sources in Chicago, northwest Indiana and St. Louis said buyers in their markets were aiming for the same $20-per-ton price drop, with some tons traded as of late April 3.
In Detroit, mills pushed out bids late April 2, most suppliers accepted the $20-per-ton drop by the next morning and the dust had settled by lunch, sources said.
"The market definitely picked up (April 2). In fact, many were surprised that we were even out buying already. We took a very strong stance at down $20, and once we were able to convince (one supplier) at down $20, others fell in line," said a buyer at one Detroit area mill. "Export markets are very weak, which has been a strong factor in domestic market pricing."....
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