Mills begin buying for June — at lower numbers than expected

Written by Stephen Miller

The suspense about the drop in ferrous scrap pricing for June has ended with Delta, Ohio-based North Star Bluescope entering the market at significantly lower numbers than most predicted.

— 1 Busheling: $375/gt down $40/gt

— Shredded: $375/gt down $20/gt

— Plate & Structural: $340/gt down $30/gt

These prices are on the weaker side of various predictions, most of which pegged prices to be $10/gt-$20/gt.

It seems the lack of demand due to outages and poor steel sales took a hit on prices.

The fact that Shredded (with a 94% Fe yield) is trading at the same price as Busheling (97% Fe yield) is a sign of weakness in the steelmaking sector, residual alloys notwithstanding.

Other buyers are likely to follow suit with further declines expected for prime grades. There is no evidence of dealer resistance as yet.

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