Scrap Prices Slide on all but Prime Grades

There is a big difference between the settlement prices in the Midwest versus those on the East Coast. Ferrous scrap prices in the Chicago area saw shredded scrap drop by $30 per gross ton, cuts (obsolete scrap) was down $20 per ton while prime grades (bundles and busheling) went sideways. In the Detroit numbers shredded scrap was down $20 while plate & structural was down $10 and prime grades moved sideways. There are reports that in the South and East shredded scrap was trading $50-$60 per gross ton lower than one month ago.

One of the large Chicago area dealers told SMU earlier today, “Primes remain in demand for flat rolled producers with not much in the way of supply given July shutdowns are looming [auto shutdowns].” He went on to say, “Also, as the market gone done late last week the overhang that was sold after the original offerings were consummated got sold at deeper discounts.”