NEW YORK Shredded scrap prices gained the most ground in the Midwest in July as mill buyers looked to restore more-historical price spreads between the material and No. 1 busheling.
Detroit-area steel producers set the tone for the region earlier this week, trading at increases of $15 per gross ton from prices in June, and were soon followed by some mills in Indiana that secured shred at increases of $10 to $15 per ton.
Market participants said shredded scrap values came under pressure shortly after, trading at up $10 per ton to sideways as the week progressed. The varying trends were based primarily off the last transactions in June, which also recorded a shifting market as the buying week advanced.
Shredded sales in Detroit were reported in a range of $375 to $380 per ton, Indiana market participants saw a range of $380 to $390 per ton and Chicago-area buyers and sellers reported a range of $370 to $380 per ton.
AMMs Midwest Ferrous Scrap Index for shredded scrap settled July 10 at $380.24 per ton, up 3.2 percent from $368.47 in June.
Despite dealers suggesting that they would push for increases on prime scrap prices this month, most prime scrap, such as No. 1 busheling and No. 1 bundles, reportedly traded sideways.
However, several buyers and sellers said prices firmed toward the higher end of last months ranges. AMMs Midwest Ferrous Scrap Index for No. 1 busheling settled July 10 at $400.93 per ton, up 0.7 percent from $397.96 last month.
Some seasonal shutdowns within the auto sector resulted in a sufficient supply of prime scrap to meet mills needs, which meant buyers did not have to be aggressive on prime prices, mill buyers said.
A sideways market for No. 1 busheling coupled with meaningful increases in shredded prices narrowed spreads between the two grades to $20.69 per ton in July, down from a $29.49 spread in June.
Meanwhile, cut grades such as No. 1 heavy melt fared slightly better in some Midwest markets as some buyers offered moderate increases to secure No. 1 heavy melt and plate and structural scrap due to tighter supply conditions.
AMMs Midwest Ferrous Index for No. 1 heavy melt settled July 10 at $366.21 per ton, up 1.1 percent from $362.17 in June.