Steel Products
Early Scrap Update: +$30 to +$45 per gross ton
Written by John Packard
March 6, 2013
Early indications our of SMU industry sources is for Midwest scrap prices to be $30-$45 per ton higher than what we found at the beginning of February. Negotiations are continuing with a number of mills but we have heard of a few deals being done on prime grades at +$40 per gross ton.
We heard from one Chicago area scrap supplier of sales being made at $437 per gross ton delivered for #1 busheling and $432 per gross ton on bundles.
As we discussed scrap with a service center executive he used the former CEO of Steel Dynamics, Keith Busse rule of thumb formula of taking busheling plus $150 to get your all in hot rolled cost our of a mini-mill. If correct, this would put the HRC cost number around $587 per ton (+/- $20 per ton).
We will continue to follow the scrap markets through the week and report further.
John Packard
Read more from John PackardLatest in Steel Products
US rig count slips, Canada ticks higher
ncreases through September, according to the latest Baker Hughes rig count data.
CRU: EC to toughen steel safeguards
The European Commission proposes cutting its steel import quota by almost half, with volumes exceeding the limit facing 50% duties. The region’s steel industry welcomes the move, while other steel-producing nations fear the consequences. CRU published an insight before this announcement, noting that more restrictive trade policy could significantly raise the cost of marginal supply […]
US and Canadian rig counts stabilize
US counts continue to hover just above historic lows, while Canadian figures remain comparatively healthy.
Plate market sources critique mill hikes amid current market conditions
Following spot market plate price increase notices issued by domestic mills this past week, participants are contemplating the rationale behind the increases and whether they will stick. Some sources anticipate that current market conditions will shift in November and believe the increases may set a new "pricing floor."
Oregon Steel Mills lifts plate prices by $60/ton
Oregon Steel Mills has joined other producers in announcing a price increase of at least $60 per short ton on steel plate.