A large Detroit-area scrap buyer has settled scrap prices for November, with busheling, shredded, and plate and structurals (P&S) all notching gains over October, a scrap source told SMU.
The source said busheling came in $30 per gross ton higher than October, while shredded and P&S were each up by $20 per gross ton.
He commented that now that the United Auto Workers (UAW) strike is ending, steel mills will increase their production.
“Scrap prices are going to continue to rise because of this and on a seasonal basis, too,” he added.
Another source said that with the ending of the strike, there is “anticipation of higher demand for cold-rolled coils resulting in higher demand for prime scrap.”
Although UAW members have returned to the job, the tentative deals with the “Big Three” Detroit-area automakers still need to be ratified by the workers.
As to whether the Detroit-area prices would stick, the second source said that “mills in the Ohio Valley are following these trends.”
The Detroit-area settlement is important because it often sets the tone for scrap prices nationwide.
The second source added that there is an expectation the market will move up again in December.
October Scrap Settlement Recap
SMU will report updated prices for November prices once more regions are settled.
Our October scrap prices stood at:
- Busheling at $380-420 per gross ton, averaging $400, unchanged from September.
- Shredded at $350-390 per gross ton, averaging $370, down $20 from September.
- HMS at $300-340 per gross ton, averaging $320, down $10 from September.
Ethan BernardRead more from Ethan Bernard
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