Ferrous scrap prices for October finished on firm ground in
Chicago after recording a slight bounce over September levels
on some obsolete grades in late trading.
A late push for scrap
by several producers encouraged dealers to raise prices a touch
above the sideways numbers that many committed tons to earlier
in the past week.
said one mill that entered the market much later in the week
was still chasing tons late Oct. 4 while a few other mills
reportedly were trying to secure more volumes ahead of the
traditionally tighter winter months.
When the dust had
settled, No. 1 heavy melt had traded between $340 and $350 per
gross ton, sources said, with one mill reportedly paying up to
$8 per ton above last months prices to secure its
However, sources said
No. 1 heavy melt generally traded toward the middle of that
range, resulting in AMMs assessment for No. 1
heavy melt in Chicago to settle at $345 per ton, up $3 from
Shredded scrap sales
also recorded a modest bump, and AMMs assessment
for shred in Chicago settled at $359 per ton, up $2 from last
Sources said the
slight uptick was driven by a late-week push by some mills for
more shredded scrap.
While other grades,
like No. 1 bundles, No. 1 busheling and plate and structural,
traded sideways, an apparent supply shortage of machine shop
turnings in Chicago drove that price up $5 per ton to $245,
with sources reporting deals on either side of that number.
"Mills tried to stay
firm, but, (they) need scrap. They came back sideways and even
offered five bucks for additional tons. This tells me they see
this as the bottom and are trying to get ahead of an up market
by buying heavy. They are predictable," said a source at a
A mill buyer who
acknowledged this pattern said it was a surprise to see some
mills still "chasing tons" Oct. 4. "Mills looking to buy more
are wasting their time. Theyre driving up the price and
not getting any units. Its foolish," he said.
A few suppliers said
that while producers concluded deals with most local suppliers
at or around prices unchanged from September, several deals
with remote suppliers were at much higher prices than those
recorded in Chicago and Indiana.
Another supplier said
shredders refused to accept anything under previous prices and
by Oct. 2 even those offers had dried up.
didnt take shred at sideways on Monday were back in on
Wednesday for shred and paying up money. The market, which was
supposed to go down, for the most part went sideways and up
because dealers held their ground," he said. "There is still
some demand out there and I do believe we could sell scrap for
some more money today than we did two days ago. We could (do)
$5 for sure. But were sold out."