Ferrous scrap prices began to settle late this week, with secondary grades in the Midwest falling by $20/gt ($20.3/mt) from March settled prices and prime grades remaining sideways, aligned with SteelOrbis’s previous projections.
In Chicago, the price of #1 busheling remained at $450/gt ($457.2/mt) delivered consumer while shredded fell by $20/gt ($20.3/mt) to $430/gt ($436.9/mt) delivered, finally separating the grades by $20/gt, the usual spread between the two. HMS I in Chicago fell $20/gt ($20.3/mt) to $370/gt ($375.9/mt) delivered. In Detroit, it was a similar story, with #1 busheling remaining at $455/gt ($462.3/mt) while shredded dropped $20/gt ($20.3/mt) to $430/gt ($436.9/mt) delivered.
The disparity that was expected between #1 busheling and shredded material was expected for several months now. In March, US mills left all prices unchanged and postponed the matter. #1 busheling and shredded prices had traded at the same level for four months. For example, in Pittsburgh, the prices of both grades stood only $3/gt ($3/mt) apart since January, and in December, the difference was of only $7/gt ($7.1/mt). Shredded appreciated more rapidly during the winter months, as shredders and other related equipment were particularly susceptible to downtime during the harsh weather, as they endured the elements. #1 busheling, on the other hand, was less susceptible to those effects.
In the southern US, particularly Texas, some buyers tried to push cut grades down by $25/gt ($25.4/mt) to offset scheduled maintenance downtime, while others followed the Midwest trend. In Dallas, the price of HMS I dropped by $22/gt ($22.3/mt) to $443/gt ($450.1/mt) delivered consumer while shredded fell by $20/gt ($20.3/mt) to $400/gt ($406.4/mt) delivered.
For May, some sellers hope the scrap market could bounce back due to rising prices for finished steel. The price of hot-rolled coil continues to climb, rising by $5/nt ($5.5/mt) in the past week to $1,040/nt ($1,146/mt) FOB mill this week. Yet there are still a number of scheduled maintenance shutdowns for May (although not as many as in April), and historically, both in 2024-2025 have fallen in March and not recovered for the entire year in both cases.
