April Ferrous Scrap Prices Still Up in the Air

April ferrous scrap prices continue to be in negotiation as the domestic mills try to drive down the buying prices while the dealers try to hold on because they know the mill order books are still good – especially on the sheet mills.

We learned from one of our sources in the Ohio Valley the following, “For the most part pricing is still up in the air in the Ohio Valley and mid-west.  It seem prices will end up at down $25-30 for obsolete grades and down approximately $10 for primes.  However most of what has been done thus far has been tonnage allocations and TBD [to be determined] orders. Prices for shred are being negotiated in the $295-300/gtd [gross ton delivered] range and bush around $380/gtd.  Final sales should be completed by Thursday.

“Interestingly there have been very recent export sales to Turkey off the east coast that are up $15mt over sales taken two weeks ago, giving domestic sellers something to hang their hat on.  Additionally, it has been rumored that a large national brokerage company has purchased up to 14 cargos of primes and DRI for US delivery during the second quarter which many are taking as a bullish sign (if true…).”

Another source told us there were some small sales done to Coatsville at $240/GTD on HMS (down $35) and plates and structural at $250/GTD also down $35. There was discussion about prime grades being $10 per gross ton delivered lower than last month levels.

Scrap is one of the major price drivers and could impact momentum on prices depending on what happens over the next few days. We will have more on the scrap markets later this week.