Midwest ferrous scrap prices sag on shredded

Sep 05, 2013 | 06:11 PM | Sean Davidson

Tags  steel scrap, ferrous scrap, Chicago market, Detroit market, Philadelphia market, heavy melt, shred, p&s hms

NEW YORK — Sustained weakness in fundamentals driving down the price of shredded scrap pushed all ferrous scrap grades lower in the Midwest as mills entered the market in earnest Sept. 5.

Early trading indicated that the Chicago market will finish stronger than Detroit after mills in the latter region successfully drove down prices further than originally expected. Although pre-trading speculation pointed to Detroit finishing weaker than other Midwest markets due to higher prices paid in early summer, the expectation that shred would drop $10 per gross ton in September—with prime grades possibly moving sideways—fell far short of reality.

Detroit-area mills entered the market early Sept. 5 and quickly concluded the bulk of their buying at prices down between $10 and $15 per ton on shred, $10 on primes and between $5 and $15 on different cut grades. Market participants said trend ranges varied depending on where business was concluded last month.....





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