Steel Products Prices North America
June 10, 2014
Steel Mills Push to Get Higher Secondary Price Minimums
Written by John Packard
According to SMU sources, last week ArcelorMittal USA raised the minimum selling price on secondary grades of steel to approximately $500-$520 per ton ($25.00/cwt-$26.00/cwt). This has caused some concern within the industry with one fabricator who has been involved with secondary steel for the past 15 years reporting to Steel Market Update, “…I have been told from a supplier that minimums have been put on all secondary steel including secondary programs (pup coils, heads and tails, field claims, etc.)…the minimum is $25.00/cwt…After the scrap loss and additional processing costs on this type of material the true cost is very close to the cost of prime material.” This manufacturing executive reported that he believes secondary steel prices will at least temporarily increase.
When we discussed the issue with one of secondary service center contacts located in the Midwest we were told there were minimal amounts of secondary steel available in the marketplace. “This has kept my spot business to other distributors very brisk.”
