Shredded Scrap Was Weakest Grade in June Trading

We have been working on trying to get a handle on scrap prices and adjustments in the costs the domestic steel mills will have for scrap during the month of June. SMU sources advised us that with the exception of prime grades of scrap most mills cancelled their remaining orders at the end of the month. The mill expectation has been that ferrous scrap prices on cut grades and shred would be lower in June than what was negotiated for the month of May.

So far, we have seen scrap prices in Detroit move lower on shredded scrap by $20 per gross ton and on cut grades by $10 per gross ton. Prime grades such as #1 busheling did not drop and instead moved sideways (remained the same).