NEW YORK A Northeast
scrap dealer says he has sold more than 30,000 tons of shredded
automotive scrap to two different brokers who also function as
exclusive buying agents for two different steel producers,
providing one of the first indications of May price
The dealer said he sold the
material on a price basis of $365 per gross ton delivered
The dealer told AMM he
sold 10,000 tons of shred to one broker for delivery to a
Pennsylvania mill at $365 per ton, or down $25 from the April
price. A source familiar with the buy side confirmed there had
been a trade but said that the final volume
and destination were yet to be fixed.
The same dealer said he sold an
additional 25,000 tons of shred to a second broker for delivery
to two different mills, one in Indiana and the other in South
Carolina. Neither the second broker nor the steel producer was
able to provide further information on this reported deal.
Many market participants in the
Midwest have speculated in the past week that domestic ferrous
scrap prices would drop between $15 and $20 per ton next month
based on weak demand and export cues (
amm.com, April 25).