Markets completed much of their September business on Tuesday, with some deals lagging for completion. The market stuck to the original outlook though some variance crept in based on supply and demand balance though other factors have also come into play.
Still, the Chicago region made final adjustments on Tuesday with shredded continuing to hold up settlements as large amounts of tonnage for this grade moved at sideways numbers late last week but were selling at down $10/gt today. Some market participants are hesitant to finalize shredded deals because of this trend.
In Pittsburgh prime grades trended down by $50/gt with #1 busheling settling at $594/gt delivered while secondary grades moved down by $25/gt. The index for #1 HMS settled at $418/gt delivered, machine shop turnings were $300/gt delivered mill, P&S 5ft fell by $25/gt to $453/gt and shredded settled at $458/gt delivered Pittsburgh consumer.
The Philadelphia market exchanged #1 busheling at down $40/gt to $530/gt delivered mill, #1 HMS transacted at down $25/gt to $403/gt delivered, P&S 5ft changed hands at down $24/gt to $413/gt delivered and shredded also fell by $24/gt to $444/gt delivered Philadelphia consumer.
In Detroit, the Davis Index for #1 busheling was down $50/gt to $596/gt delivered, while #1 HMS fell by $24/gt to $409/gt delivered, machine shop turnings dropped by $25/gt to $318/gt delivered mill, P&S 5ft declined by $26/gt to $448/gt delivered and shredded moved down to $24/gt to $456/gt delivered Detroit consumer.
The Southeastern region has predominantly traded at down $40/gt on prime grades such as #1 busheling and down $20/gt on secondary grades, both against August settled prices. Although, in some regions, sellers report a loss of $50/gt on #1 busheling deals, deeper than the average change, and in others including the Carolinas the placement of some grades is still pending.
In Texas, some sellers report prices down $20/gt on secondary grades and down $40/gt on primes compared to August settled price but also some large sellers are reporting no placement as of Tuesday afternoon on a variety of grades with expectations for negotiations tomorrow.
Transportation bottlenecks, higher freight costs, and barge availability due to Hurricane Ida are also adding ambiguity to trades in the South.