Ferrous scrap prices are starting to settle as of today. Initial checks with some of our scrap sources found prime grades down $40 and obsolete grades down $30 in portions of the Midwest. We learned the Cleveland area mills bought busheling down $20 to $300/gross ton. We also learned of a purchase of HMS at $235/gross ton in Ohio as well. One of our pig iron experts predicted prices will have to move lower despite high iron ore prices. He reported an impasse between producers and consummers, but it will have to breakdown soon. The downward movement in pricing was expected and may help put pressure on flat rolled and plate prices moving forward.
California Steel Industries became the second mill to announce new coating extras. Based on our quick analysis, the CSI coating extras for galvanized steel are down 8 to 10 percent.
I contacted a couple of other coating mills who told me they were looking into their extras and would advise when something changes. My expectation is for most mills to make moves in their galvanized coating extras within the next week to two weeks.
Steel buyers should remain aware of zinc pricing and buyers of galvanized (and Galvalume where you need to watch zinc and aluminum pricing) need to be aware of the variations in extras from one mill to another. Steel Market Update does an analysis of coating extras on our website. You should look under the “resources” tab then “Steel Mills” to “Galvanized Extras” to “Coating Extras Comparison” which has been updated as of today.
A reminder that our next (not yet sold out) Steel 101 workshop will be held in Fontana, California and will include a tour of the California Steel Industries steel mill. The dates for this workshop are January 7-8, 2020. We hope to have our registration page up and available within the next few working days.
If you have questions about renewals, upgrades or becoming a new subscriber to Steel Market Update, please contact Paige Mayhair at 724-720-1012 or by email: Paige@SteelMarketUpdate.com
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John Packard, President & CEO
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