Early Reports Have Shredded Scrap up $30 in Detroit, Pittsburgh, Cleveland

According to Steel Market Update (SMU) sources scrap prices are headed higher for the month of November delivery into the domestic steel mills. Early reports have Detroit settling up $30 per gross ton on all grades. We have also heard shred prices are up $30 per gross ton in the Cleveland and Pittsburgh markets and up $20 on prime grades.

SMU heard from one of our East Coast sources who told us, “East is looking like it’s up $20/GT but only 3 mills buying.  We are doing deals in the OH Valley and Southeast at up $30/GT for shred and cut grades.  Primes look like they are higher by about the same.  The market is developing still – we just started selling scrap.  

“Exporters are higher by $20 at this point but I think they are headed higher.  In fact I think all grades are headed higher in Dec and January.  Flows are very light.  Mills are saying that demand is poor – especially in the OH Valley – but there isn’t much scrap around to sell.”  

The mill reporting poor business was Timken and not one of the flat rolled mills.

Pig iron pricing is reported to be $390-$395 per metric ton, CFR NOLA (New Orleans).