U.S. Midwest #1 Busheling Ferrous Scrap Prices Take a Leg Down

The busheling market started to take shape this week as buyers and dealers came into the market, with early indications to be in the mills favor. Initial reports are for scrap in the Midwest to be down $30-40 / ton depending on grade and location. It seems that weather constraints have had a more negative impact on consumers and that dealers and order books have not grown enough to consume all the material purchased in January.

Also, with a completely anemic export market, supply has overcome demand this month with busheling trading around $405. The futures market has seen no new trades this week, however more prices have been seen in the market with sellers looking to offer Q2 periods at $415 and buyers lurking around $390. These are the closest markets we have seen in the busheling contract in many months, so renewed hope is there that this contract may have life in it yet. Again, there have been no reported trades this past week.

{amchart id=”74″ BUS Futures Forward Curve}