Midwest scrap market divided on July prices

Jun 30, 2014 | 04:24 PM | Sean Davidson

Tags  scrap, scrap prices, Chicago, Indiana, Detroit, Midwest, shredded scrap, prime scrap Sean Davidson

NEW YORK — Midwest steel mills likely will push for an unchanged ferrous scrap market in July despite pressure from suppliers for higher prices.

Several mill buyers in Chicago, Indiana and Detroit said they were unsure why dealers were bullish on July scrap prices (amm.com, June 25), citing a supply-demand balance to support their push for sideways prices in July.

"Hype is for the market to go up. I’m not totally convinced that needs to happen on all grades, if any," one buyer said. "We’ll see what happens."

A second buyer said that overall demand could drop off a little. "We currently are sitting on a large inventory and will have a 55- to 65-percent program for July, with very little prime (scrap) need. That being said, I don’t see any glaring reason why there is strength in this market outside of dealer chatter. Demand remains weaker in this region and there is plenty of scrap to be had," he said.....





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