Shredded scrap prices offer mills best values
Jun 05, 2014 | 06:25 PM
| Sean Davidson
NEW YORK Price differentials between heavy melt, plate and structural, and shredded scrap are poised to break free from historical spreads based on recovery values as another month of weaker shredded scrap prices has brought cut grades nearor on par withshred in several regions.
In a few local markets, 5-foot plate and structural scrap has traded as high as $15 per gross ton over shredded scrap, according to some market participants.
The tight price spreads between better-quality shredded scrap and heavy melt helped prop up shredded values, with some June 5 trades reported at down $10 per ton after early shredded sales for June were reported the previous day at down $20 per ton.
Some suppliers called it a sign of a firming market that might not have been as abundant on shredded scrap supply as previously believed. Others said the late strengthening in shredded prices was more reflective of a move by mill buyers to secure the better-value grade compared with prevailing prices for heavy melt and No. 1 busheling scrap.....
To access AMM's full content, please log in below. If you do not have an AMM account, we invite you to take a free trial or subscribe below.
Already a registered amm.com user?
Access to amm.com editorial content is granted only to paid subscribers and trialists. If you do not have an active account in your own name, please either subscribe or take a trial and you will have instant access to amm.com content. Sharing your login credentials with individuals who are not subscribers represents a violation of AMM copyright.
Every morning, every minute no matter how often you follow the markets, there's an AMM subscription to fit your needs.
Not sure if you are ready to invest in a subscription right now? Take a free, no-obligation trial. Start your free trial today.