According to sources close to SteelOrbis, several large Midwest mills in Detroit and Chicago offered an increase of $10/mt across all grades compared to July settled prices. After some hesitation, some trading in shredded scrap has been heard in the market at the $10/mt increased offer price. A source noted that due to adequate inventories at mills, mill buyers in those regions were seeking slightly lower volumes compared to the July buy-cycle, which prompted some sellers to proceed with trades.
Other dealers, though, are resisting this limited upward movement as according to one source “there is enough demand to see northern markets go up $15-20/mt.” According to a separate source, “Southern regions may see an increase of $20/mt as they move in line with Northern markets.” Additionally, prime scrap grades remain on tight supply and high demand which may prove to be a strong negotiating element to further lift heavy melting steel and shredded scrap.
The August buy-cycle is expected to settle August 4 for the East coast, Pennsylvania, Ohio and some parts of the Midwest, but a dealer warned that “some deal discussions may trail into the weekend as some sellers do not want to sell too early when the market has potential.”