AMMs Midwest Ferrous Scrap
Index settled sideways for December after a weak export
market and lower demand from several steel producers prevented
prices from rising.
Attempts to send prices below
Novembers levels were blocked by suppliers who threatened
to stall supply as they wait for higher tags, market
Midwest pricing for No. 1 heavy
melt, shred and No. 1 busheling scrap in the Midwest recorded
minor shifts downward, with only heavy melt losing more than a
dollar per gross ton.
A few mills that chased tons
with aggressive pricing in November were able to rein in their
trading ranges for December, causing the slight softness,
Ferrous Scrap Index for No. 1 busheling settled Monday at
$389.31 per gross ton, down just 43 cents from $389.74 in
"I call (Decembers) market
a sideways market with softer bias. (One consumer) took a
couple of suppliers down a little only because those suppliers
were paid more last month. So theyve evened out," one
After several months of trading
almost on par with shred, the prime scrap grade of No. 1
busheling appears to be holding on to a premium of more than $3
per ton over shred, sources said.
In November, No. 1 busheling
prices settled $3.63 per ton above shred; this month, the
premium was 30 cents lower at $3.33 per ton as
AMMs Midwest Ferrous Scrap Index for shred
settled at $385.98 per gross ton, down just 13 cents from
"I dont see that
theres been any kind of shortage of prime," a second
source said. "It has been one commodity that we havent
had any trouble getting supply of. But theres been a lot
of talk on shred supply."
Buyers at some mills suggested
that shredded scrap supply concerns were the primary reason
domestic scrap prices across all grades held onto sideways
numbers and did not fall in December.
Suppliers acknowledged there had
been significant cutbacks in volume from several mills as the
industry prepares for holiday closures. However, the prospect
of seasonal declines in winter scrap flows allowed sellers to
prevent tags from trekking lower, they said.
But even heavy melt tags were
not spared a modest narrowing in prices for December, with
AMMs Midwest Ferrous Scrap Index for No. 1 heavy
melt settling at $356.83 per ton Monday, down $1.55 from
$358.38 per ton in November.