Sources throughout the US have said that while down $20/gt on cuts and shred is “pretty much in the bag,” nationwide resistance at down $70/gt prices on busheling will likely prevent the market from settling until Monday
“We know of some deals at down $70/gt on primes and some at $60/gt,” a source said “I think that still needs to settle out and might not take place until Monday. Down $70/gt is definitely getting pushback.”
Sources in Detroit, the South, and the Ohio Valley are reporting similar situations in their respective regions.
Whether the pushback will be successful has yet to be known. Earlier today SteelOrbis reported that the global markets seem to be pretty bearish on pig iron, adding that it’s suspected that the next round of ex-Brazilian BPI into the Port of New Orleans could be transacted at $450/mt CFR ($415-$420/mt FOB). Because of that, some believe that resistance to down $70/gt busheling could be futile.
Additional clarity is expected to emerge on Monday, August 8.