Recycled metals: Ferrous scrap mills have entered the Sept market

In a surprisingly prompt manner, Great Lakes area mills have entered the September ferrous scrap market.

Mills in Detroit have reportedly bought scrap sideways from August with the exception of shredded scrap which fell $20/gt.

Given the recent difficulty in determining the exact prices mills are paying in the region, here is an informed estimate:

Busheling	$390 – $400/gt	Even
Shredded	$365/gt	Down $20/gt
P&S	$325/gt	Even
#1HMS	$305/gt	Even

The prices aligned with various trade projections, except for P&S and HMS, which appeared to be undervalued given their stronger performance.

In conversation with a major scrap seller in the Midwest, it was mentioned that Chicago has not officially bought yet. Given that mills in the area are expected to buy scrap at nearly normal levels, the prices paid by Detroit may not be well received in Chicago.

There is doubt shredded can go down very much in the Midwest, even with the upcoming outages. The next several days will determine whether prices can drop at all.