AMMs Midwest Ferrous Scrap Index
roared back this month near September levels as the domestic
market followed stronger export cues and supply-side concerns
helped erase almost all of Octobers weakness.
Resurgent demand from some
pockets in the Chicago region and a nearly 20-percent increase
in monthly requirements by some producers offered more upside
support to scrap prices in November as tags jumped more than
$50 per gross ton.
Meanwhile, a modest drop in
flows of prime scrap from manufacturing plants that took
scheduled outages over the past few weeks helped No. 1
busheling tags break away a little more from prices of shredded
scrap. As a result, AMMs Midwest Ferrous Scrap
Index for No. 1 busheling settled Monday at $389.74 per gross
ton, up $53.82 per ton or about 16 percent above $335.92 per
ton in October. Meanwhile, AMMs Midwest Ferrous
Scrap Index for shredded scrap settled Monday at $386.11 per
ton, up $51.35 or about 15.3 percent above $334.76 per ton in
While the two grades traded
within a dollar of each other in October, this months
widening to a more than $2-per-ton spread came as no surprise
to most market participants, who said they expect busheling
tags to return to historic premiums over shred in the coming
weeks and months.
"Mill buyers and scrap sellers
understand that value-in-use of scrap and therefore are well
aware of the true value of busheling. I expect it to return
relatively soon to the premium it has and should command over
shred," said one source.
In the overall Midwest region,
heavy melt posted the strongest pricing gain in November as
AMMs Midwest Ferrous Scrap Index for No. 1 heavy
melt settled Monday at $358.38 per ton, up $51.68 per ton or
nearly 17 percent above $306.70 per ton in October.
Export prices also received a
boost this week as news of a lone U.S. bulk cargo sale to
Turkey late last week made its way into the marketplace.
After a two-week lull, reports
trickled in of a mixed cargo sale to a Turkish mill for prompt
delivery at $410 per tonne for an 80/20 of No. 1 and No. 2
heavy melt. The cargo also comprised shred and plate and
structural, which sold at prices $5 and $10 per tonne higher,
Market participants said the
price was weaker than expected, and a few sources said
confirmations on the final prices of a tender released by a
Turkish mill would offer a clearer idea of price levels in
The lone sale, however, sent
AMMs East Coast Ferrous Scrap Export
Index soaring Monday to $391.30 per tonne for HMS 1&2
80:20 f.o.b. New York, marking a rise of 11.3 percent or $39.77
from $351.53 per tonne previously.
Reports of a U.S. offer off the
West Coast to China helped lift AMMs West Coast
Ferrous Scrap Export Index to $357.13 per tonne f.o.b. Los
Angeles, a gain of nearly 6.7 percent from $334.81 per tonne
previously. West Coast exporters continue to struggle to secure
bulk cargo shipments as offshore demand remains absent.
Sources said increased activity
and pricing in containerized scrap exports to Taiwan could
bring some bulk activity in coming weeks.