LOS ANGELES A
boost in a benchmark scrap price may bolster the chances for
increased structural steel tags to succeed.
consumer buying price assessment for shredded automotive scrap
in the Chicago market rose to $390 per ton last week, up $31
from October. This would appear to satisfy some participants,
who said earlier that the market needed to see a scrap increase
of at least $25 per ton for any price firming effort on beams
enough for the mills to push through an increase," a Midwest
distributor source said about the rise in Chicago shredded.
Gerdau Long Steel North America and Steel Dynamics Inc.s
Structural and Rail division in Columbia City, Ind., announced
$20-per-ton increases this past week (
amm.com, Nov. 5). But market sources said the key
to any increase is the participation of Blytheville, Ark.-based
Nucor-Yamato Steel Co., whose price moves often are accompanied
by similar action by Charlotte, N.C.-based Nucor Corp.s
Berkeley beam mill in Charleston, S.C.
If the increase
becomes unanimous, thus raising the published f.o.b. mill price
on core beam sizes to $785 per ton ($39.25 per hundredweight),
most market sources will then speculate if this would begin to
close the gap between the published price and the prevailing
discounts under book to medium and large service centers,
estimated at $40 to $60 per ton ($2 to $3 per cwt) and more in
some cases recently. Some buyers believe another substantial
increase in scrap tags may be needed to trim the disparity,
although upcoming holiday mill maintenance outages also could
help to firm prices by reducing immediate availability.