The week in review and what to watch in the days ahead

As noted on Friday, despite some disagreement on prices in certain districts, sluggish demand for finished steel kept prices basically steady. In a recent article, we provided a rundown for what we’re seeing in the Great Lakes region.

In other ferrous scrap news, pig iron prices held steady in Brazil at $470-$475/mt CFR U.S. Ports. Turkey continues to buy billets ex China to take pressure off from firm scrap prices. And two U.S.-origin bulk cargoes were sold to Turkey at prices down $7-$8/mt compared to July.

In terms of output, domestic steel mill production eased last week for the second consecutive week, according to the latest data from the American Iron and Steel Institute (AISI). Although production has declined, it remains relatively on the high side compared to rates seen across this year.

Non-ferrous highlights

The aluminum and copper scrap markets are still in the summer doldrums. It seemed that all eyes were on ADI to set the benchmark for September contract negotiations. And after much speculation, we’re hearing that they will start buying next month, setting the table for the usual contract talks.

Meanwhile, copper spreads are wider as companies move from pricing off September Comex to December Comex. Spreads seem to be easing, but there’s still a supply shortage that is keeping the market at bay.

What to watch in this week’s economic reporting

On the horizon is the Federal Reserve’s September meeting, at which it has signaled a possible drop in interest rates. That would be good news for the recycled metals industry in terms of being able to finance again at reasonable rates.

Meanwhile, we should see some more trades, and thus get a sense of how the rest of the month will shape up. Stay tuned.