Steel Products
Early Reports Have February Scrap Prices Moving Lower
Written by John Packard
February 6, 2013
A number of domestic steel mills are reported to have purchased their February scrap needs at prices below January price levels. The price levels range from down $5 on some products in the east to as high as down $30 per gross ton on some items in the Ohio Valley. The average appears to be closer to down $15-$20 per gross ton in most markets.
In the middle of January many dealers were speculating scrap prices would move sideways (no change) for the third month in a row. At the time Steel Market Update commented when dealers hope for a sideways move many times they are disappointed and prices move lower.
One of the larger national dealers told us in an email, “The domestic market pricing is sliding down to the level of export dock pricing which appears to be in the $350-$360 gross ton delivered range on secondary grades. Given the lack of any material improvement in mill operating rates, scrap pricing will likely remain soft.”
While out of the east one of the dealers told SMU, “The entire market is down, which for some regions like the eastern US is a surprise for many who thought just two weeks ago the market would not be down here and would probably be higher because of lackluster flows. But the OH Valley and south turned out to be weaker than was expected, export turned decidedly weaker (notwithstanding the weaker dollar), and there seems to be a lot of prime scrap coming down from Canada. DJJ has been trying to buy at down $20 for some time now. Hence, we are seeing prices down $5 – $15 in the east (more for shred and prime), and down $15-$20 in the OH Valley. The order books at the mills in the valley are clearly weak and most people don’t think there are going to get better soon. Scrap continues to move in the east because of export and some decent local mill buying volumes.”
In the Midwest we heard of one large mill buying their scrap for the month at down $10 while another mill with plants in both the north and south bought their material down $20.
We understand the Detroit, Michigan and Cleveland, Ohio markets are down $20 per gross ton as of this afternoon.
Pig iron prices are reported to have drifted higher during the month of January from $403 per metric ton to $415 per metric ton CFR NOLA.
John Packard
Read more from John PackardLatest in Steel Products
OCTG producers in Canada take aim at Mexico, US, others
Evraz NA and Welded Tube of Canada have lodged an unfair trade complaint against imports of OCTG, including those from USMCA trading partners Mexico and the US.
Final Thoughts
The difference: The spat with Turkey was a big deal for steel. This time, the 50% reciprocal tariff for Brazil – if it goes into effect as threatened on Aug.1 – hits everything from coffee and to pig iron. It seems almost custom-built to inflict as much pain as possible on Brazil.
CRU: US rebar and wire rod prices rise alongside S232 increase
CRU Senior Steel Analyst Alexandra Anderson discusses current market and pricing dynamics for long steel products in the US.
CRU: Excessive global supply could hit rebar mill investments in US
Following the onset of the war in Ukraine in March 2022, concerns about import availability and expectations of rising demand from President Biden’s Infrastructure Bill pushed US rebar prices to record highs. In response, a flurry of new mills and capacity expansions were announced to meet the rise in demand from growth in the construction […]
Steel buyer spirits tempered by soft spot market conditions
Steel sheet buyers report feeling bogged down by the ongoing stresses of stagnant demand, news fatigue, tariff negotiations or implementation timelines, and persistent macroeconomic uncertainty.