US domestic ferrous scrap trading wrapped up within a day of starting in the Midwest and East Coast markets on Friday, with drops of $50-60/gt depending on grade, against January settled prices.
Turnings was the only grade to see some variation in secondary grade prices, which settled down $50/gt. Shredded prices moved down by $60/gt against January settled prices, while #1 bundles and other prime grades remained unchanged.
Secondary grades encountered an oversupply of scrap, especially, shredded after the flow increased in January. Busheling though remained in tight supply amid strong demand that compounded the increased spread.
The monthly Davis Index in Chicago remained flat for #1 bundles at $485/gt delivered while all other grades decreased. The other prime grade, #1 busheling ticked down by $4/gt to $480/gt delivered, #1 HMS fell by $55/gt to $370/gt delivered, P&S 5ft dropped by $56/gt to $412/gt delivered and shredded declined by $61/gt to $402/gt delivered. The index for machine shop turnings decreased by $50/gt to $296/gt delivered Chicago region.
In Detroit, P&S 5ft sold easily at $380/gt while #1 busheling and #1 bundles were flat selling at $490-500/gt. #1 HMS dropped as low as $320/gt but some sales took place as high as $360/gt delivered.
Shredded is selling as low as $385/gt in Pittsburgh, though some sales were closer to $400/gt delivered. In Philadelphia too, P&S 5ft moved down to $350-365/gt with primes remaining unchanged at $450/gt for both #1 bundles and #1 busheling.
Some scrap dealers in the South and Southeast reported selling out their inventories while others expect to trade into Monday. In the Dallas region, for example, mills bid at $50/gt below January settled numbers across secondary grades.
Unlike the Midwest, shredded, structural, and heavy melt traded in tandem. Some sellers closed at bid levels, but others opted to offer at prices down only $30/gt from January levels hoping for improved pricing as mills are still seeking scrap taking them into trading early next week.
According to some dealers, the upward push is unlikely due to the weaker competition from export. The Carolinas mostly settled at prices down $50/gt across all secondary grades including shredded. #1 busheling traded at unchanged prices against January settled across the South and Southeast.
In the Carolinas, #1 busheling traded at $480-485/gt delivered, #1HMS traded at $350-355/gt delivered, and P&S 5ft sold at $365-370/gt delivered. The prices are trending higher in Dallas, though at the same change against January settled prices. In Dallas, #1 busheling sold for $500-510/gt, #1HMS transacted at $370-380/gt delivered, and P&S 5ft traded at $380-400/gt delivered.