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 direction.
The dealer said he sold the material on a price basis of $365 per gross ton delivered Ohio.
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).