US Midwest scrap prices take a beating in September

Monday, 17 September 2012 11:21:33 (GMT+3)   |  
       

US domestic scrap prices trended downward overall during early September buys, but prices in the Midwest took the hardest hit. In the beginning of August, the general expectation was that the month's strong uptrend would continue into September and scrap prices would increase again this month, although not as drastically. As a result of the initial uptrend expectation, many mills bought heavily in August to avoid having to pay too much of a premium in September. But as August was coming to a close, it became evident that some mills bought so heavily in August that they would need to buy very little scrap in September. So when a couple major Midwest mills went out to buy scrap following the Labor Day holiday, they initially quoted a decrease of $20/lt from August levels. Other mills pushed for further decreases on account of soft finished steel prices (particularly for flat rolled products) and tepid steel demand across the board. By the time the market settled, domestic Midwest HMS I prices only fell about $15-$20/lt but both shredded and busheling prices fell an average of $25-$30/lt.

US East Coast scrap prices were also anticipated to increase in September, even more so than prices in the Midwest given that August scrap price increases in areas such as Pittsburgh and the upper East Coast rose modestly compared to Detroit and Chicago. East Coast scrap dealers that sold early this month were able to sell at sideways prices compared to August, but prices also began to fall as more mills entered the market. Still, scrap prices in the East Coast fell an average of about $15/lt in September, largely because the August increase was far less significant. While soft finished steel prices and demand certainly impacted the price decline, a weak export market also played a major role. Although Turkish mills have intensified their ex-US scrap bookings in the past week, scrap prices to Turkey have declined as compared to previous price levels.

 

US domestic

Long Ton (lt)

Metric Ton (mt)

Change from prices in early August

Midwest

Busheling Scrap

$380-$390

$374-$384

↓ $25-$30

Shredded Scrap

$378-$383

$372-$377

↓ $23-$28

HMS I

$355-$360

$349-$354

↓ $15-$20

    

US domestic

Long Ton (lt)

Metric Ton (mt)

Change from prices in early August

East Coast

Busheling Scrap

$375-$385

$369-$379

↓$15-$20

Shredded Scrap

$365-$375

$359-$369

↓ $10

HMS I

$325-$335

$320-$330

↓ $5-$10


Similar articles

Mexican domestic scrap prices

28 Mar | Scrap & Raw Materials

Carbon and stainless scrap prices in Taiwanese domestic market - week 13, 2024

28 Mar | Scrap & Raw Materials

Turkey’s deep sea scrap prices stabilize at $385-390/mt CFR

28 Mar | Scrap & Raw Materials

CISA: Coking coal purchase cost in China down 9.86% in Jan-Feb

28 Mar | Steel News

US scrap market still expecting sideways pricing in April

27 Mar | Scrap & Raw Materials

Ex-US deep sea scrap prices to Turkey increase, ex-EU prices relatively stable

27 Mar | Scrap & Raw Materials

Downtrend reverses in Pakistan’s import scrap segment

27 Mar | Scrap & Raw Materials

Average local Chinese scrap prices rise amid tight supply after previous decreases

27 Mar | Scrap & Raw Materials

Import scrap prices in India move up, but low bids prevent deals

27 Mar | Scrap & Raw Materials

Baltic countries and Czech Republic seek EU ban on ex-Russia scrap imports

27 Mar | Steel News