NEW YORK After
setting domestic markets on fire with significantly higher bids
for prime scrap before the month started, most steel mills in
Ohio and western Pennsylvania completed their monthly buys July
8 at increases that matched the early, aggressive push by one
According to market
participants, mills in Cleveland concluded their No. 1
busheling buys for July at an increase of $45 per gross ton
from June, with the most sought-after grade delivering the
As a result,
AMMs assessment for No. 1 busheling in Cleveland
settled July 8 at $430 per ton, up $45 from June. Meanwhile,
most obsolete grades and shredded scrap settled up $25, with
No. 1 heavy melt settling at $355 a ton and shred at $395 a
The big push for prime
grades in Ohio and western Pennsylvaniainitially led by
one steel mill rumored to have been short material (
amm.com, June 26)forced mills in other
markets to also offer stronger prices for prime scrap, and
although Pittsburgh has yet to settle, sources said prices
there also appear to be leaning toward up $25 for cut grades
and up between $45 and $50 a ton on prime material.
slower to settle than other markets in the region as mill
buyers cautiously waited to jump in or held out in hopes that
the market had hit its peak, sources suggested.
"The market may have
peaked but it is not sliding down," a Pittsburgh mill buyer
In the Midwest, mills
in the St. Louis region also decided to wait until July 8 to
conclude their buying despite Chicago and Detroit settling
amm.com, July 3).
said most mills in St. Louis tied up volumes before the
Independence Day holiday on the condition that prices would be
negotiated this week.
By the middle of the
trading day on July 8, price negotiations mirrored the Chicago
market and delivered a $20-per-ton increase on most obsolete
grades and a $30-per-ton bump on primes, sources said.
Mill buyers who had
hoped that market would cool off after last weeks early
trading were greeted July 8 by dealers who refused to budge,
"The perception is
that August will not be any lower; therefore, mills were not
able to talk prices down. I still anticipate prime to be a
little tight in August due to (auto) plant summer shutdowns,"
one St. Louis dealer said.
this could be a month to push for even higher prices but then
they realized the market was not on fire. So there wasnt
really much resistance to the $20 to $30 increases in St.
Louis," he said.
A second source in the
"It seems on par with
the supply shortage and what I thought would happen when June
ticked down. So it was relatively predictable that it would
rubber-band back a bit higher than what it went down in June,"
In the Southeast,
deals were slow as one producer is still pushing to trade at
prices unchanged from June. In Birmingham, Ala., and the
Carolinas, sources said the market looks poised to settle at up
$30 on prime and up $20 on all other grades.
Lisa Gordon, Pittsburgh, contributed to this