said several mill buyers secured large volumes from dealers on
formula pricing and appeared content to let small volumes of
spot trading determine pricing for the majority of their No. 1
busheling and No. 1 bundles requirements this month.
unable to reach a final assessment on prices for the two prime
scrap grades, resulting in appraised values of $408 per gross
ton for No. 1 busheling and $401 per ton for No. 1 bundles
based on the thin volume of prime scrap transacted in the
Chicago spot market. Both prices are down an appraised value of
$32 per ton from January based on early sales of prime
As reports of prime
scrap trades east and south of Chicago poured in at down $30 to
$40, some sources felt prime scrap prices could fall a little
further than $30 per ton in Chicago. However, most buyers and
sellers opted for formulas as none could find common ground on
spot pricing, sources said.
AMMs assessment for obsolete grades, such as No.
1 heavy melt and plate and structural, finished at $390 and
$403 per ton, respectively. Heavy melt dropped $30, while plate
and structural dropped $31 from January assessments.
Despite some fear that
shredded scrap prices in Chicago would follow neighboring areas
and drop more than $30 per ton, sources said a majority of
shredded scrap traded in Chicago in a range of $405 to $410 per
ton, down $30 from January. AMMs February
assessment for Chicago shred finished at $408 per ton Feb.
reported a wide range of prices on most grades of scrap, with
sellers saying they were forced to seek different homes for
their scrap after one mill more or less sat out of the market
while others lowered their intake from regular suppliers to
take advantage of supply from the east.
"There seems to be a
wider dispersion of buying prices for all commodities compared
to recent months arising in part from the dislocation of scrap
from the east and Canada, combined with no flows in the Midwest
due to weather. It will be interesting to see how things
develop over the next few months," one dealer said.
A second dealer said
Februarys prices dropped across the country because
exporters needed to push domestic prices lower to rekindle
interest from overseas.
"Exporters wanted to
drive the market low enough to the point that Turkey could buy,
so they flooded the market from all coasts with cheap scrap. No
flow in Chicago and its surrounding areas stopped prices from
falling more than $30," he said.
A few dealers were
gutted by the massive price drops in Chicago and neighboring
Indiana mills, which sources said had managed to drop prices
between $30 and $40 per ton.
"Mass brutality pretty
much sums it up. Midwest markets, like the north, south and
east markets, got destroyed. Markets really took on the tone of
the export market, meaning numbers just kept getting worse. ...
This is ugly," a third dealer said.
surprise at "how quickly the floor fell out of the market,"
while other sources cried foul.
"Somebody out there is
not speaking the truth. I would love to see pictures of all
this scrap from overhead. This month shoots in the foot
everything that makes supply and demand a part of the scrap
metal business," a fourth dealer said.
"I guess a message to
be learned from this is never to believe the phrase
theres no scrap out there," a fifth source