June Still Settling but Scrap Looking to be Up $20-$30

Steel Market Update has been communicating with our scrap sources during the day today (Thursday, June 4th) and we have learned that not all of the transactions/negotiations have been completed. Even so, a pattern has emerged which is showing ferrous scrap prices as moving higher by $20-$30 per gross ton compared to this time last month.

We heard from one of the larger scrap companies in the US and were told,”Generally speaking, scrap demand remains firm as anticipated.  However, there have been several consumers whose scrap inventories were depleted that required prompt shipment, driving their prices towards the higher end of the stated ranges.  Conversely, those mills with more comfortable scrap inventories have taken a more measured approach, choosing to delay purchases a day or two to “allow the dust to settle.”  From the dealer/processor perspective, sales will likely be conservative as there is little downside to owning scrap heading into July.  The market will keep a close eye on operating rates and steel pricing in coming weeks, particularly in light of the trade case filings.”

Prices in the Midwest were reported to be:

Heavy Melt (HMS) – $245-$255 with some areas of the country reporting HMS as high as $270 per gross ton.

Shredded Scrap – $270-$280 with prices all the way up to $300 per ton. One of our sources on the east coast told us, “The country is short shred” and many of the numbers began with a “3” on shred and busheling in the Virginia area.

Busheling Scrap – $270 to as high as $300 per gross ton depending on the region of the country.

The market continues to settle so we will have more details in Sunday night’s issue about the ferrous scrap markets.