Although most expected the US domestic scrap prices to settle following the Independence Day holiday, a number of Midwest mills appeared eager to secure scrap earlier. Even though overall expectations for July were positive after June scrap prices settled at sideways to slightly down prices, expectations grew more pronounced as the month progressed that scrap prices in July would settle substantially above June levels. Dealer sources told SteelOrbis that they didn't expect much activity his past week on account of the holiday, and expected most mills to wait until the second week of July before making their monthly scrap buys. However, in the Midwest, mill buyers appeared to rush into the market to purchase scrap hastily before many took off for a long holiday weekend.
Busheling scrap prices, for a second consecutive month, were the strongest, and flat rolled mills entered the market prepared to pay higher prices--and with dealers bullish, prices settled up about $30/lt in Chicago, and up as much as $40/lt in Detroit. Shredded and HMS I prices rose about $15-$20/lt throughout the Midwest, with prices in some cities a little higher. Long steel demand isn't particularly robust at the moment, according to SteelOrbis sources, so obsolete scrap grades were boosted not so much by demand, but rather in part by a stronger market for prime scrap, as well as strengthening US export scrap prices to Turkey. In the next few days, scrap prices in the remainder of the Midwest, South and East Coast are anticipated to settle, also well above June levels.