Scrap prices still appear to be up anywhere from $40 per ton (very early deals) to as much as $50 per ton with most of the deals done late this week in the +$50 range. Dealers have sold all of the scrap they want to dispose of during the month of December. One of our sources pointed to foreign deals being done with one of the domestic steel mills in the $300 per metric ton delivered to the USA mills.
In the Ohio Valley we heard scrap prices settled at: HMS = $250-$260 per gross ton; Shred = $285-$290 per gross ton and busheling = $280-$290 per gross ton. We heard from another source who put the overall market at HMS = $240-$250 per gross ton; shred at $265-$275 per gross ton and busheling at $280-$290 per gross ton. All prices are delivered to the domestic steel mills.
We learned late today that demand from sheet mills is what is driving scrap prices. At the moment the export market has been quiet due to a weakening Lira in Turkey and bulk freight rates increasing – both making U.S. scrap more expensive.
Even so, the expectation is we will see additional upward pressure on scrap prices as we head into January. After that we will need to wait and see if demand is strong enough to sustain the market.
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John Packard, Publisher
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