Chicago steel mills win $20/T scrap price drop
Apr 04, 2013 | 06:07 PM
| Sean Davidson
NEW YORK A drop in demand from several Midwest steel mills and expectations of a seasonal improvement in scrap flow have combined with a lull in export activity to send scrap prices down about $20 per gross ton across the region.
Shortly after mills in Detroit settled at down $20 per ton for all grades April 3 (amm.com, April 3), one large steel producer set the tone for neighboring Chicago and northwest Indiana with bids down $20 as well, according to market participants.
Other mill buyers quickly followed with identical bids, and despite initial resistance from dealers, trading began in earnest by the afternoon of April 3 as buyers refused to budge from their initial bids. A majority of the trading in the region was completed by late evening at down between $20 and $22 per ton, depending on scrap grade and each mills previous months transactions, according to sources.
In the Chicago area, No. 1 heavy melt settled April 4 at $361 per ton, down $21 from March, and No. 1 busheling also shed $21 to settle at $402 per ton. ....
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