Final Thoughts

We are hearing that ferrous scrap prices will rise by $20 to $30 per gross ton this month. Negotiations continue at most of the mills, but we did learn of one Detroit mill settling yesterday up $20 on primes (busheling/bundles) and up $30 on the other grades. The cold weather, strong exports and low inventory levels at the steel mills are pushing prices higher. We will have more on the scrap market and where things settled in Sunday evening’s issue.

The week has started with a bang as Nucor, U.S. Steel, NLMK USA and AK Steel all have announced $40 per ton price increases, while the West Coast mills of California Steel Industries and USS/POSCO have taken their prices up by $30 per ton. Reaction from steel buyers and actual price offers will be coming to light in the coming days. We heard from a few buyers of spot hot rolled being offered anywhere from $32.50/cwt ($650 per ton) to $35.00/cwt ($700 per ton) depending on the mill and location. It will take one to two weeks before we are able to determine if the increases “stick” (and what does “stick” mean).