Final Thoughts

Ferrous scrap prices are starting to settle as of today. Initial checks with some of our scrap sources found prime grades down $40 and obsolete grades down $30 in portions of the Midwest. We learned the Cleveland area mills bought busheling down $20 to $300/gross ton. We also learned of a purchase of HMS at $235/gross ton in Ohio as well. One of our pig iron experts predicted prices will have to move lower despite high iron ore prices. He reported an impasse between producers and consummers, but it will have to breakdown soon. The downward movement in pricing was expected and may help put pressure on flat rolled and plate prices moving forward.

California Steel Industries became the second mill to announce new coating extras. Based on our quick analysis, the CSI coating extras for galvanized steel are down 8 to 10 percent.