The April ferrous scrap trade that commenced Monday continued making headway through the week with most markets following the trend that started in Detroit carrying no price change for primes and $20/gt declines for secondary grades such as #1 HMS, P&S 5ft, and shredded.
East Coast markets such as Philadelphia settled quickly on Tuesday with prime grade #1 busheling remaining unchanged compared to March settled prices at $510/gt delivered consumer. Secondary grades including #1 HMS fell by $19/gt to $386/gt delivered and P&S 5ft dropped by $20/gt to $395/gt delivered Philadelphia consumer. However other obsolete grades such as machine shop turnings moved down $20-50/gt in the region.
In Pittsburgh #1 busheling softened slightly, falling by $5/gt to $562 delivered while #1 HMS declined by $21/gt to $402/gt delivered Pittsburgh mill with deals encompassing $395-410/gt. Machine shop turnings dropped by $23/gt to $275/gt and P&S 5ft moved down by $20/gt to $428/gt delivered Pittsburgh consumer.
Detroit primes were flat at $567/gt delivered for #1 bundles and $568/gt for #1 busheling with the grade transacting at wide price ranges of $540-595/gt based on prior starting point from March. The index for #1 HMS dropped by $21/gt to $383/gt delivered Detroit consumer with the full scope of deals between $370-390/gt.
Most Chicago deals completed on Wednesday with prices in line with the trend barring #1HMS that is transacting at down $20/gt but some deals even lower and machine shop turnings that are amply supplied in several US markets and moving at down $20-50/gt in Chicago.
The monthly Davis Index for # 1 busheling remained unchanged at $553/gt delivered Chicago consumer while #1 HMS moved down by $20/gt to $402/gt delivered and P&S 5ft dropped by $21/gt to $442/gt delivered Chicago mill. The index for machine shop turnings fell by $28/gt to $314/gt delivered but ranged all over the board at $285-345/gt.
Southeast followed the same trend as the Midwest and East Coast with prime grades at sideways and secondary grades down by $20/gt.
The Davis Indexes in Birmingham for #1 busheling decreased by $2/gt to $563/gt delivered as #1 HMS and P&S 3ft fell by $19/gt to $389/gt delivered and $427/gt delivered, respectively. P&S 5ft declined by $21/gt to $408/gt delivered and shredded fell by $21/gt to $424/gt delivered. Machine shop turnings slipped by $23/gt to $322/gt delivered. Birmingham and Carolinas areas held the price decline on turnings at about $20/gt, while some regions decreased their price by $25-30/gt.
Mills in Texas are offering what sellers consider substantially lower prices in the region. Sellers expected prices to rise by $10-30/gt to trend with the cumulative national movements on secondary grades in March and April, after the net two-month movement in the region was impacted due to weather effects in February. Instead, mills are offering sideways in some cases and in others seeking to reduce buys by $20/gt that was gained in March. Mill offers will unlikely move up as some reportedly do not need inventories. Mill buyers are also reporting sufficient regional scrap supplies.