Scrap Prices North America
May 4, 2014
Price Spread to Return Between Shred and Prime Grades of Scrap
Written by John Packard
Shredded ferrous scrap prices are now projected to be down $15 to $20 per gross ton in the Chicago market according to SMU sources. At the same time prime grades (like #1 busheling) are expected to tread sideways (remain the same as prior month). If, once the deals are completed, all runs true to the forecast course, then the spread between shred and Busheling will be approximately $15 per ton.
A combination of a surplus of shred in the Midwest and less demand from steel mills is apparently working to restore a healthy spread between the two grades.
