Ferrous Scrap

Early December trading in ferrous scrap mart sees prices down

Written by Stephen Miller

December 6, 2024

The US scrap market has begun forming for December shipment and prices seem to be sagging so far.

On Thursday, an Indiana mill entered the scrap market at prices $10 per gross ton (gt) lower than November. This was soon followed by a Northwest Ohio buyer, which bought scrap down $20/gt across the board. 

In the Chicago district, an integrated and an EAF producer reportedly bought virtually no scrap. 

The same in the Cleveland area where the mills in this district bought very little. In Canton, Ohio, and the Pittsburgh district, prices were down $20/gt on heavier volumes.  

Information out of the Midwest and North Central districts is incomplete, but prices are expected at $0-10/gt down due to weather considerations. Reports from Texas has most mills buying down $20/gt from last month. 

It should be noted these prices set by steelmakers do not mean dealers have accepted these offers. However, even if there is some dealer resistance, given the small size of these purchases, it may not make any difference. We will have to wait until January to assess further.

It has been announced that the Lockport Lock on the Illinois River (MM291) will close on Jan 28, 2025, until Mar 25, 2025. This means river traffic cannot reach Chicago during this time. Shipments of pig iron could be affected. Meanwhile, shipments of scrap via barge from Chicago destined for mills on the Lower Mississippi will be suspended

Stephen Miller

Stephen Miller started his career in the scrap metal industry in 1978 at Luria Brothers in Cleveland. Over the last 40+ years, he has worked in all capacities in the trading business. He has had positions in both domestic and international scrap trading. In addition to scrap, Miller was at the forefront of the pig iron trade and established a pig iron distribution company under the name of Ferrosource, Inc. Most recently, Miller has concentrated on the scrap export market and regularly does consulting for several companies in the industry.

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