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
CMC to open rebar fabrication facility in Ohio
Longs producer and metal recycler CMC plans to open a new rebar fabrication plant in Akron, Ohio.
US and Mexico take action to curb ‘unfair’ trade
The US and Mexico announced measures on Wednesday to prevent tariff evasion and protect North America’s steel and aluminum industries.
Final thoughts
First off, we hope everyone had a safe and happy July 4th holiday, with fireworks seen and BBQs attended. Many parts of the country are quite toasty at the moment, signaling that, yes, summer has indeed arrived. And looking at our most recent survey results, the summer doldrums have arrived as well.
Active rig counts recover in US, slip in Canada
US drill rig activity moved back up last week after drifting lower for four straight weeks. Meanwhile, Canadian counts slipped for the first time after a seven-week rally, according to the latest data from Baker Hughes.
AISI: US steel shipments up in May from April, off from 2023
Domestic steel shipments increased in May month over month but have fallen on-year.