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
Nucor maintains plate prices
Nucor aims to keep plate prices flat with the opening of its June order book.
US rig count up, Canada declines
Oil and gas drilling activity was mixed this week, according to Baker Hughes. US rig counts expanded for a second straight week, while Canadian activity continued its seasonal slowdown of eight consecutive weeks.
US, offshore CRC prices continue to diverge
US cold-rolled (CR) coil prices declined again this week, slipping for a third straight week. Most offshore markets did the opposite, moving higher this week.
S232 lifts EU HR price over US, Asian HR still well behind
Domestic hot-rolled coil prices were flat this week after dropping for four straight weeks. Most offshore markets bucked the trend and gained ground.
SMU Steel Demand Index dips into contraction
SMU’s Steel Demand Index has moved into contraction, according to late April indicators. The slowdown comes in response to growing tariff uncertainty after the index reached a four-year high in late February.