Ferrous scrap trading largely wrapped up for the July cycle on Friday with secondary grades holding unchanged and prime grades increasing by $20/gt compared to June settled prices. The US ferrous markets followed a trend that began in Detroit on Wednesday with little variance, although some softness emerged for certain grades by Friday.

 

In Chicago, prime grades #1 bundles and #1 busheling moved up by $20/gt to $638/gt delivered and $633/gt delivered, respectively. Secondary grades were flat with #1 HMS at $472/gt and P&S 5ft unchanged at $511/gt delivered Chicago consumer. Mostly, #1 HMS moved in the range of $470-475 although the full range includes $460-500/gt based on seller and starting point. P&S 5ft deals were struck at $510/gt for the most part with a few tons moving at $515/gt in Chicago.

 

Philadelphia also saw a $20/gt increase in prime with #1 busheling settling at $580/gt delivered while secondary grades were flat with #1 HMS holding unchanged at $457/gt delivered, P&S 5ft at $465/gt delivered, and shredded at $496/gt delivered Philadelphia mill.

 

In Detroit #1 busheling continues to transact at wide-ranged numbers of $620-675/gt with the index settling up $20/gt at $646/gt delivered. P&S 5ft was flat at $495/gt delivered while shredded remained unchanged at $500/gt delivered Detroit consumer.

 

The Carolinas encountered an increase of $10/gt on #1 busheling and traded sideways on secondary grades. The monthly Davis Index for #1 busheling rose by $10/gt to $618/gt delivered while #1 HMS, machine turnings, P&S 5ft, and shredded trended unchanged at $449/gt, $381/gt, $466/gt, and $471/gt delivered mill, respectively. 

 

In NE Arkansas, #1 busheling rose by $14/gt to $657/gt delivered while #1 HMS declined by $2/gt to $482/gt delivered as some mills used the opportunity to decrease prices in the latter part of the trading week. Machine turnings fell by $6/gt to $423/gt delivered, but P&S 5ft and shredded were unchanged at $506/gt and $517/gt delivered mill, respectively. 

 

The market’s early sentiment for August scrap trading foresees a potential softness in prices, especially for secondary materials, which are in ample supply and moved easily at sideways numbers throughout all markets. Still, a few areas reported some downward pressure on material such as machine shop turnings and #1 HMS in later deals. Some market participants point to very low inventories at the yards after July deliveries and not necessarily a spike in feedstock flows, which could result in sideways moves in August.

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