Scrap prices surprised scrap dealers and have deteriorated more than what was expected going into September negotiations with the domestic steel mills. Here is how one of the national scrap companies portrayed the tone of the negotiations: “As you can imagine, it’s been a hectic time since the return from the holiday last week. As […]
SMU scrap sources advised ferrous scrap prices have settled in Detroit with prime grades (Busheling and bundles) moving lower by $30 per gross ton and shredded scrap by $20 per gross ton. Dealers had been hoping that a slower flow of feeder stock into the yards coupled with stronger buying by long products mills might […]
Scrap trading has been slow to develop in all but the Detroit area mills. The domestic steel mills are trying to reduce the spread between shredded scrap and prime grades of scrap (busheling and bundles) which in some cases has expanded to $70 per gross ton. Scrap guru Michael Marley reported this afternoon that the […]
As reported last week, obsolete grades of ferrous scrap came under price pressure as negotiations concluded for July deliveries. Prime grades, however, saw prices move sideways as the spread between shredded scrap and primes increased. The product that saw the most movement was shredded due to excessive inventories and little movement on the export front […]
To our USA customers welcome back from your 4th of July holiday. I saw this quote while doing some research this afternoon, “Fun is one of the most important and underrated ingredients in any successful venture” (Richard Branson) This is something I have believed in for my entire steel career. Speaking of fun, we have […]
We purposely did not begin this article on where our sources are seeing ferrous scrap prices with an attention grabbing headline as we think readers would be confused. The confusion comes from the pressure the domestic steel mills are expected to put on obsolete grades, like shredded scrap and HMS (heavy melt scrap). Those of […]
There is a big difference between the settlement prices in the Midwest versus those on the East Coast. Ferrous scrap prices in the Chicago area saw shredded scrap drop by $30 per gross ton, cuts (obsolete scrap) was down $20 per ton while prime grades (bundles and busheling) went sideways. In the Detroit numbers shredded […]
SMU scrap sources on Friday divulged that negotiations have been slow with many mills not yet having bought as of this past Friday. Price indicators are running from sideways on prime grades (busheling/bundles) to down $10, $20, $30 in the Ohio Valley, Midwest and Southeast. The east coast was referenced as being down by even […]
I received a couple of notes from trading companies thanking me for my article on Thursday evening (The Sky is NOT Falling… at least not yet) as I tried to put into context some of the pricing available for foreign steel, correct some misinformation and look at the bigger picture. Even as questions arise about […]
My understanding is most of the mills canceled any scrap not yet delivered by the end of May. They do this when they believe scrap negotiations for June will result in better prices for them. It is still very early in the negotiation process, especially considering that Monday was a holiday. One scrap expert told […]
Scrap prices settled higher by $20 to $30 per gross ton delivered to the domestic steel mills, according to Steel Market Update (SMU) scrap sources. The rise in ferrous scrap prices has been one of the driving factors behind the flat rolled price increases announced by the domestic steel industry over the past few months. […]
Scrap negotiations are taking some time to complete as the steel mills and dealers haggle over what is an appropriate increase above what the mills paid during the month of April. Our sources are advising us that there have been a few transactions in the Midwest and in the Detroit markets. So far the Detroit […]
Steel Market Update ferrous scrap sources are advising us that scrap prices are poised to move $30 to $50 per gross ton higher for April deliveries than what we saw negotiated at the beginning of March. The issue is supply. The domestic sheet mills are having issues finding all of the tonnage they need and […]
In Sunday evening’s issue of Steel Market Update we published an article highlighting the Platts indices which are used by some mills and their customers to adjust flat rolled steel contract pricing. The other daily index out there is The Steel Index (TSI) which will be the index used for the NASDAQ Midwest Hot Rolled […]
As negotiations between the domestic steel mills and their ferrous scrap suppliers conclude we are seeing scrap prices rise with the Chicago markets “catching up” with some of the other regions. Dealers are reporting robust sales, especially to sheet mills as they are picking up spot market share from the integrated mills. Chicago area prices […]
World Steel Exchange Marketing (WSEM) announced that the US Shredded Steel Scrap TSI Index will begin futures trading on the Nasdaq Commodities Exchange (Stockholm) as of March 29, 2016. The 20-gross-ton USA Midwest shredded steel contract will be listed, and quoted, for the current month and each of the next 11 months. The contract will […]
Often with steel related economic statistics it’s useful to compare a given data stream with others which may or may not be causally related. This usually puts the steel data into context and shows whether a direction change is for real. In this piece we are comparing the price of Chicago shredded scrap with the […]
The last couple of days have been hectic as we worked through the articles seen in tonight’s newsletter as well as numerous articles that we are working on various topics. The two headline articles are, of course, the next round of flat rolled price increases. The Nucor $20 hot rolled and $30 cold rolled and […]
The scrap markets are still sorting themselves out as the domestic steel mills and dealers jostle for position with the dealers looking like they will be the victors in this go-around for January deliveries. We are hearing early trades in Chicago as being done at up $20 per ton with one of our sources telling […]
Ferrous scrap prices are one of the key indicators to watch as the market determines if we have reached the bottom in the slide in flat rolled prices and, if prices will rebound from here. The thought process has been that a move higher in scrap will help change the psychology of the market and […]
Last week we received information about the expectation for ferrous scrap price negotiations between the domestic mills and their scrap suppliers for the month of December. Over the weekend one of our east coast scrap sources provided us more details as to what they expect this week as negotiations begin in earnest: I am not […]
We learned late this afternoon that two domestic steel mills are offering to pay higher prices for shredded scrap from east coast dealers. Shredded scrap buy offers have been made at $180-$185 per gross ton up $10 to $15 per gross ton higher than November numbers (and higher than October numbers since November prices moved […]
Our scrap sources reported ferrous scrap prices as having the most strength in the east where export pricing has bounced off the bottom and momentum has apparently turned in that region. One of the east coast dealers told us that scrap flows are “atrocious” and if it wasn’t for the “terrible demand situation the market […]
A debate has begun as to when flat rolled steel prices will bottom and begin to reverse course. Part of that dialogue is what will supply look like should US Steel go through with balancing their production by temporarily taking down their Granite City Works. This would be on top of the trade suits which […]
The U.S. is not (yet) a closed market and therefore we have to remain aware of what is going on around the rest of the world and especially in China (iron ore/billets/steel) and Turkey (scrap). Ferrous scrap prices are expected to drop significantly for October 2015 shipment. When we checked with a couple of our […]
Steel Market Update (SMU) sources reported the domestic steel mills have canceled any remaining ferrous scrap tonnage that was not delivered during the month of September. This is normal when the mills believe that they will be able to negotiate lower prices for October delivery. As reported earlier this week, the expectation is for scrap […]
We ended the month of September recognizing that not only have steel prices been falling but the Momentum behind pricing turned negative during the month. Our SMU Price Momentum Indicator is now pointing toward Lower prices to be seen in the coming month or longer. Sentiment, another Key Market Indicator, has been dropping as you […]
Ferrous scrap prices continue to weaken due to sluggish demand at the domestic steel mills coupled with a lack of exports off the East Coast USA to Turkey. Turkish scrap prices have tumbled over the past thirty days, down $46 per ton or nearly 20 percent compared to last month. An 80/20 HMS mix is […]
Ferrous scrap markets are trading lower this week. The domestic mills canceled any outstanding tonnage that was due in August under the belief that they would be able to push scrap prices lower for September delivery. That is indeed what is happening according to SMU scrap sources. One of our larger scrap sources told us: […]
Earlier this month the consensus of opinion among our ferrous scrap sources was that we had seen the bottom for scrap prices and, more than likely, prices would rise as we entered September negotiations. However, that was then, this is now. As we enter the negotiation period for September ferrous scrap buys by the domestic […]