NEW YORK Scrap
dealers and steel mills in Chicago and Indiana continued to
look for direction on prime scrap prices for October, but other
markets were quick to follow trends established by Detroit in
another busy day of trading.
A late push by most
Detroit-area mills Oct. 2 to trade at prices that were mostly
unchanged from September set the tone for other markets as
mills in Canada and Texas followed suit a day later.
price assessments for Detroit were mostly unchanged, barring
No. 1 heavy melt and 5-foot plate and structural, which slipped
$2 to $341 and $358 per gross ton, respectively, brought on
mostly by a single mill that successfully lowered tags ever so
The same mill was able
to push No. 1 bundles in Detroit down $5 per ton, putting
AMMs assessment at $390 per ton.
Meanwhile, prices for
shred and No. 1 busheling in Detroit were unchanged at $354 and
$400 per ton, respectively.
A mill buyer in the
region said the decision to trade sideways on No. 1 busheling
was prompted by dealer threats of reduced supply if prices
dropped. "The understanding from the dealers was that they
would pull tons back if we went down some, so buyers accepted
dealer terms. If prices start falling in October and November,
it goes up a lot in December. We may have averted that," he
In the St. Louis area,
market participants said most grades traded sideways to
September despite attempts by some buyers to drive down prime
prices by as much as $10 per ton. Some sources reported prime
trades at sideways to down $3 per ton, with all other grades
In Chicago, sources
said there was still some uncertainty on where prices for
obsolete and prime grades will finish as dealers continue to
push for better pricing on the last tons.
Outside the Midwest,
mills around the Houston area and in Canada reportedly booked
all grades at prices unchanged from last month, and sources
suggested that other regions could follow suit.
However, sources in
Alabama said prime grades could move down slightly when the
dust has finally settled. Some mills reportedly managed to pick
up some tons at down $10 per ton, but several deals at sideways
prices also were recorded.
In the Carolinas,
sources said deals on cuts and primes were being done at
sideways to down $9 per ton. "The market is sideways to off
just a little bit. It all depends on who you sell to and where
you are going with it, but the market has bottomed," a broker
across the Southeast suggested that mills are increasing their
buys as they sense the market has bottomed as winter
Cleveland are still firming up, but aside from prime scrap
these cities are expected to move sideways, sources said. They
added that prime scrap prices could slip a little following
some deals at down $10.
Pittsburgh, contributed to this story.