The ferrous scrap trade has carried on smoothly this week following a trend that began in Detroit on Tuesday logging unchanged prices for prime grades such as #1 busheling and $20/gt increases for shredded and other secondary grades, against April’s final numbers.
From Chicago to the East Coast, price movements were in tandem with surrounding markets and in line with Turkish exports, which moved the US-origin HMS 1&2 (80:20) Davis Index off the East Coast by $11.85/mt to $482.71/mt cfr on Thursday compared to Wednesday amid strong demand.
In Philadelphia, some early shredded deals moved up by $10/gt followed by $20/gt increases compared to April settled prices. The monthly Davis Index for shredded rose by $18/gt to $446/gt delivered, #1 busheling stayed flat at $510/gt and P&S 5ft increased by $20/gt to $415/gt delivered Philadelphia consumer.
Turnings were sold at mostly unchanged levels in Chicago and in some cases, up $5-20/gt on various base points along with interest levels. The Davis Index moved up by $2/gt to $316/gt delivered for the grade. Prime grade #1 busheling remained sideways at $553/gt delivered, #1 HMS increased by $20/gt to $422/gt delivered and shredded rose by $18/gt to $450/gt delivered Chicago consumer.
Traders from St. Louis to the Carolinas are reporting increases of $20/gt on secondary grades and sideways trading on busheling against April settled prices. Turnings in some instances, though, only increased by $10/gt.
Texas is following overall the same price trend launched in Detroit with #1 HMS and P&S 5ft up by $20/gt against April settled prices, but shredded was negotiated at $15-20/gt above April levels depending on mill needs. Prime grades throughout Texas also traded unchanged against April settled prices.
Looking towards June early trading, market participants are expecting another increase of $10-20/gt on secondary grades and either sideways to an uptrend of $10/gt on prime grades.