US domestic scrap market settles up in Midwest region

Consistent with the upward price movement in the East coast and as reported from initial trading trends in October 3, the Midwest region of the US, as exemplified by the movements in the Ohio and Pennsylvania states, increased scrap prices on both busheling and cut grades such as HMS I, shredded and P&S. HMS I prices increased $10/mt while shredded and P&S grades increased $11/mt. Busheling scrap increased $10-20/mt on deals.

A regional source stated, “HMS I and P&S grades were a little tight in October discussions, and while mills did not move public numbers above the $10/gt ($10/mt) premium, we are aware of premiums paid for remote deliveries beyond usual regional coverage.” Another source added that on Friday and early Monday, despite the holiday, trades were continuing. He also noted that this month mills may still be looking for additional scrap deliveries through the month as they ready themselves for the upcoming cold weather, tight holiday timelines, and continued strong demand in Q4.

Looking toward November and December scrap trades, early expectations range from a sideways to slightly upward trend.

* Sep/Oct comparison. Top number denotes change from the bottom of the previous month’s range and bottom number denotes change from the top of the same range in mt terms.