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    Iron Ore, Scrap Futures - Ore Quiet Due to Holiday – Scrap Climbs

    Written by Bradley Clark


    TSI Iron Ore: Market Quiet During Chinese Golden Week…
     
    Iron ore prices have remained steady over the past week as the Chinese have been off for their Golden Week holiday.  Demand while steady appears to be seen as fragile by many.  The market remains in backwardation with prices down the curve continuing to trade at a discount to current spot pricing. The current spot price is around $131/ton with the q4 trading at $126, q1 ’14 at 122 and cal 14 at $110.  Market participants await the return of their Chinese counterparts to give renewed impetus and direction to the market. Volumes have been down this week understandably but remain very robust.

    U.S. Midwest #1 Busheling Ferrous Scrap (AMM) Prices Climb
     
    The busheling market has shown unexpected strength this week after early signs the market would soften in October.  Initially sentiment suggested the market would settle around $10 down this month, but recent mill price hikes and steady mill buying has caused the market to do a complete 180 with most deals being concluded sideways at worst from last month’s pricing. The physical market strength has filtered into the futures market with bids returning to the market looking for offers around $390-400 for q4 periods. No trades have been reported but there has been a definite resumption of interest particularly from buyers this week as the physical market begins to price.

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    Mills seek more scrap after lower prices fail to attract tons

    Several mills that bought October scrap early last week are still asking for additional supplies, scrap market participants said. The reason: the mills' initial prices did not attract enough of the raw material, they said. A trading source based in northern Ohio said three mills have contacted his firm seeking offers for additional tons. He said the mills asked for offers even if prices were higher than their original buys last week.

    Nucor increases spot HR to $1,240/ton

    Nucor said on Monday, Oct. 12, that its consumer spot price (CSP) for hot-rolled (HR) coil will be $1,240 per short ton (st) this week, a $10/st increase from a week earlier. The CSP for HR coil from California Steel Industries (CSI) on the West Coast will be $1,305/st, up $15/st from the prior week. Nucor is still offering lead times of three to five weeks, according to the letter to customers. You can track mill price announcements on our website. Steel Market Update (SMU) published a weekly price assessment on Tuesday, Oct. 6, showing HR coil prices averaging $1,270/st, up $10/st from the previous week. We will update our prices on the evening of Tuesday, Oct. 13.