Ferrous Scrap Settlements Up $40-$55

Not all regions of the country have settled but we are seeing ferrous scrap prices increasing to the domestic mills by $40 to $55 per gross ton. The variance is depending on region and at what point prices started.

Out of the Midwest and Southeastern markets we heard from one of our sources, “It’s been a bit of a mixed bag in the SE markets with most grades trading up $40-50/gt on firm demand.  We didn’t move quite as sharply as the Midwest and Northeast given we started at a bit stronger base.  Pricing has shaken out in the $255-265/gt delivered mill on shred and p&s, $265-275 gtd on prime grades, HMS $245-255 gtd.  We’re anticipating better inbound obsolete flow at these improved prices which should provide for a more balanced supply/demand scenario heading into May.  It will be interesting to see how steel prices respond to the move higher in raw materials and whether this draws more domestic capacity on-line and/or rekindles imports.  Without question, it will be a delicate balancing act…”