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
Active rig count update through mid-May
Drilling activity ticked up in the US but declined in Canada during the week ended May 17, according to the latest release from Baker Hughes.
Mexico’s TYASA breaks ground on SBQ rolling mill
Mexican steelmaker Talleres y Aceros (TYASA) broke ground this month on the construction of a new special bar quality (SBQ) rolling mill in the state of Veracruz.
Biden hikes tariffs on Chinese goods, including steel and aluminum
The Biden administration announced a series of actions on Tuesday targeting China’s "unfair" trade policies. These actions will, among other things, make imports of steel and aluminum from the Asian nation even more prohibitive.
Nucor holds weekly HRC price steady after last week’s cut
Nucor chose to hold its consumer spot price (CSP) for hot-rolled (HR) coil steady this week after stunning the market last week with a significant price decline. The steelmaker said in a letter to customers on Monday morning that its $760-per-short-ton (st) CSP base price for HR coil is effective immediately. The price is unchanged from the CSP announced on May 6 but down $65/st from $825/st April 29.
US CR tags ease, premium over imports still high
Offshore cold-rolled (CR) coil prices remain much less expensive than domestic product, even as domestic prices have slipped to a six-month low, according to SMU’s latest check of the market.