Detroit’s ferrous scrap market above forecast
Jun 04, 2013 | 05:58 PM
| Sean Davidson
NEW YORK Supply-side fundamentals prevented ferrous scrap prices from falling drastically for a third consecutive month after mills in Detroit traded at unexpected price levels June 4.
Following recent trends, steel mills in Detroit were the first to begin trading for June, and once again buying took less than a day to complete for most of the market.
Participants said most Detroit-area mill buyers stepped into the market with bids before lunch, and most negotiations and trading were completed by mid-afternoon.
When the dust had settled, primary grades in Detroit traded sideways to May, while obsolete grades and shredded scrap were down by $10 per gross ton. Market sources previously speculated that prices would fall between $10 and $20 per ton in June, with prime grades expected to perform better than shred in an attempt to restore value-in-use price differentials.
Several sources said late June 4 that Chicago had started trading at similar levels.....
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