Ferrous scrap prices in Chicago shed about $10 per gross ton
for September on most grades consumed by steel mills as prime
grades eventually followed a weakening shredded scrap
Mills in neighboring
Indiana turned the heat on dealers this past week to attempt
purchases that were down $15 per ton, but uncertainty surrounds
how many tons actually traded at those prices, market
Buyers at Chicago-area
mills spent little time on talks as most dealers were said
willing sellers at discounts of $10 per ton.
"We knew going into
the month that shred was going to drag the market down and a
drop of $10 was only reasonable. So we didnt fight the
buyers," one Chicago-area dealer said, echoing other views.
Tussles for cut grades
such as No. 1 heavy melt and plate and structural scrap led to
$9-per-ton declines from August levels for the two grades, with
shredded scrap recording a similar move and the prime grades of
No. 1 bundles and No. 1 busheling dropping $10 per ton.
September assessment for No. 1 busheling settled at $400 per
gross ton, shredded scrap at $357 per ton and No. 1 heavy melt
at $342 per ton.
Sources suggested that
Chicago and Indiana mills lowered their prices after covering a
majority of their requirements, with one source suggesting that
at least one mill was now offering prices that were $15 to $20
below its August levels.
In the St. Louis
region, sources reported trades at similar numbers, although
some said the prime grades could move a lot lower for shipments
outside the region.
In Texas, several
sources said they had concluded trades at prices that were
unchanged from August, although some market players suggested
there could be a $10 to $20 drop on prime grades before the
market settles. However, other sources said price drops in
Texas were unlikely.
"The mills in this
area need scrap and there is very little scrap on the ground.
Everybodys inventories are low; mills and scrapyards,"
one Houston-area dealer said.
The few mills in Texas
have been slow to enter the market, a second source said.
"Sideways seems to be
the trend although demand is very robust from all the Texas
mills and Mexico, and supply is tepid still. Docks continue to
buy cargoes sold in August for September shipment. All in all,
sellers are selling less tons in September," another area
is shaping up to be the weakest market with a planned outage at
one mill, an unplanned outage at another and weaker demand from
its remaining mills.
Shredded scrap sales
concluded thus far were reportedly down around $20 per ton,
with one mill securing its needs at a drop of $15. Prime scrap
has traded $10 lower and heavy melt at a $15 discount to
August, with plate and structural poised to follow suit.
Plate and structural
scrap needed to fall to create a spread with shredded scrap,
while prime grades needed to drop to prevent the price spread
with shredded from widening, sources said.
In the Carolinas and
Atlanta, prices were shaping up to be $10 lower, with
Birmingham likely to record a similar trend.
Pittsburgh, contributed to this story.