Detroits scrap market was again first to settle this
month, with most mills completing their purchases by Nov.
Supplier resistance to
increases of $25 per gross ton paid off as mill buyers
increased monthly prices by $30 per ton on major grades like
No. 1 busheling, shredded scrap and plate and structural scrap.
However, regular buying by one steel mill in the region that
has moved away from purchasing scrap only at the start of every
month resulted in a smaller increase for Detroits heavy
With only two
consumers of No. 1 heavy melt in the Detroit region the mill
was able to prevent heavy melt prices from jumping a full $30
in November, causing AMMs assessment to finish
at $364 per ton, up $23 from October.
participants said No. 1 heavy melt traded at $365 to $370 per
ton, but acknowledged that volumes were limited in that
assessment for No. 1 busheling and shred in Detroit stood at
$430 and $384 per ton, respectively, Nov. 6, up $30 per ton
from October. Meanwhile, five-foot plate and structural prices
were assessed at $388 per ton, also a $30-per-ton increase from
participants in Chicago said two mills had yet to step into the
market with firm prices while the rest have reportedly
completed a majority of their buy.
point to increases of $30 to $35 per ton in Chicago depending
on grade and last months price.
Sources across the
Midwest said turnings were the tightest in supply, followed by
heavy melt and plate and structural, while busheling remains in
"My original thinking
was up $20 to $30, but $25 just wasnt pulling in tons.
$30 just seemed to do the trick and gave everybody a way to
release tons they were holding back on," said one Midwest mill
increases are partly due to both a tight supply of cut grades,
which also propped up prime grades, and strong order books on
hot-rolled coils, he said.
"Suppliers said we
want $30 and they hung in there pretty steady for it," one
Midwest supplier said. "Its within the range thats
acceptable. ... It was driven by a shortage of cut grades.
Shredded isnt in abundant supply either, especially going
into the winter."
In the Mid-Atlantic,
market participants reported increases of about $20 per ton on
most grades while in Ontario sources said prices have increased
$25 per net tonne on primes, $30 per tonne on cuts and $35 per
tonne on shredded scrap.