Steel Products
March 8, 2013
Scrap Prices Vary by Region - Why the Disparity?
Written by John Packard
Scrap prices rose for the month of March from a low of $20 per gross ton in the east and parts of the south to as much as $50 per gross ton on some prime grades in the Midwest. The Detroit market was reported by SMU sources to have settled at $410 for busheling, $410 for shred and $370 for HMS. In the Chicago market we found prices running a little higher as busheling ranged from $425-$440, shred was reported to be closer to $410-$415 and heavy melt (HMS) at $380 per gross ton.
One of our scrap sources sent us a note late this evening reporting on the settlements in his area and provided us feedback as to what is causing scrap prices to be both volatile and different in various regions of the country:
East coast prices ended up about $20/GT over February levels across the board, though a few items were up $25 – $30/GT. The Ohio Valley and Mid-west was up closer to $35 – $40/GT on most grades. Why the volatility and disparity between regions?
