NEW YORK A late
push to secure obsolete and shredded scrap in Chicago caused
prices for those grades to make stronger gains than prime scrap
mills that stepped in earlier this week to lock in their
volumes for the month accepted dealer demands for increases of
$30 per gross ton on most grades of scrap, market participants
The few that waited
paid increases of between $30 and $40 per ton, with prices for
No. 1 heavy melt, five-foot plate and structural scrap, and
shredded scrap getting dearer as the week progressed. However,
for the overall Chicago market, the late tons that traded at
higher prices were a small percentage of the total tons traded
in that market.
As a result,
AMMs assessment of No. 1 heavy melt prices in
Chicago finished Nov. 7 at $377 per ton, up $32 from $345 per
ton last month, with market participants reporting trades in a
range of $375 to $380 per ton.
shredded scrap at $390 and plate and structural at $394 per ton
in Chicago Nov. 7, up $31 and $30 per ton, respectively, from
Prime grades like No.
1 bundles and No. 1 busheling rose $30 per ton, with No. 1
busheling in Chicago settling at $430 per ton Nov. 7.
A dramatically reduced
supply of machine shop turnings from machining steel plants led
turnings to increase $40 per ton on average from October,
marking this months largest increase as prices finished
at $285 per ton. Sources said every mini-mill was chasing any
"Everyone in the
Chicago area was plus $30 (per ton), but it sounds like some
additional strength came into the area (Nov. 6). I was hearing
that dealers were getting plus $35 to $40 on obsolete grades
late (Wednesday), prompted by (one mill) buying anything they
could get their hands on," one supplier said.
A few sources reported
trades into Indiana at about $5 per ton above Chicago levels on
grades like heavy melt, plate and structural and shredded
St. Louis-area mills
also completed trading at the $30-per-ton increases recorded in
most Midwest markets, while in Texas sources reported trades
were concluded at between $20 and $30 per ton higher than
The Detroit market led
off the increases earlier this week (
amm.com, Nov. 6).