Chicago scrap drops after speedy May talks

May 03, 2013 | 06:06 PM | Sean Davidson

Tags  scrap prices, ferrous scrap, steel scrap, Sean Davidson

NEW YORK — Steel mills and their suppliers spent little time negotiating scrap prices in Chicago and Indiana this past week as both sides agreed to follow a mostly down-$20-per-gross-ton trend set a few days earlier in Detroit.

Most mills in Chicago and nearby Indiana began tying up tons on May 2, and by the afternoon of May 3, the few that decided to wait out the market slightly had also wrapped up their May buying programs, according to several market participants.

When the dust had cleared and the bulk of trades had been completed, AMM’s assessment for No. 1 heavy melt prices settled in Chicago at $341 per gross ton for May, down $20 from April levels.

Though both prime grades and shredded scrap began trading early at prices down $20 per ton from April, many sources said shredded prices weakened further in the last quarter of trading. As a result, AMM’s shredded scrap assessment for Chicago settled May 3 at $368 per ton, down $22 from April, while No. 1 bundles fell $20 per ton to $371 per ton. No. 1 busheling finished the bulk of trade at $380 per ton for May deliveries.....

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