Early December Scrap Negotiations Suggest Market will be Up $30-$40

Ferrous scrap prices are poised to increase to the domestic steel mills and negotiations are under way. The domestic mills did not cancel the open orders that have not yet been delivered which is a sure sign that they expect prices to be higher in December than what they negotiated in November.

A pig iron supplier told SMU. “I have heard the Chicago scrap market is trading up $30 GT across the board, but up $30 from what price last month? Many mills had to readjust their initial street pricing upwards to get their material in.  Many dealers have not completed their November orders due to lack of inventory and flow.  The mills are not canceling this time.  Flows have not improved much and with winter upon us, it will take some big Jan number to get enough material.