Platts reported that US ferrous scrap prices jumped up as continued export demand and supply side concerns combined to provide upward pressure as domestic mills bid against exporters for material.
The Platts reference price for shredded scrap rose by USD 32.50 per long tonne to a new midpoint of USD 190 per long tonne delivered to Midwest mills as domestic market prices pulled closer to export tags. The range widened to USD 180 per long tonne to USD 200 per long tonne from USD 150 per long tonne to USD 165 per long tonne, as some deals were completed and other players continued negotiating prices.
A Midwest scrap processor, who runs multiple locations and feeder yards, said that "We''ve been able to sell and we''ve been selling." He reported shredded sales at USD 200 per long tonne, delivered to local Midwest mills. Heavy melting scrap fetched USD 180 per long tonne and cut plate and structural sold at USD 190 per long tonne, both up about USD 40 per long tonne from early April levels. He believes exporters are still trying to cover orders, providing upward pricing pressure, and he is considering holding back some tonnage to see if prices firmed further going forward.
An East Coast scrap processor selling both domestically and exporting also reported higher prices, saying he had heard of shredded sales to Atlantic Coast mills at USD 190 per long tonne and USD 200 per long tonne. He added that "The domestic markets will have to move up USD 40 to USD 50 if they want to buy anything."
He said that Turkish buyers still need to buy and are paying upwards of USD 260 per tonne for shredded material. He added that "The Turks are trying to stay away but still need scrap."
A Southeast scrap supplier said that "The domestic mills know they''re going to have to pay more. I''ve decided that I''m not going to sell below USD 200 per long tonne. If the domestics don''t want to pay, I won''t sell to them."
Like the Midwest processor, he is holding back material in anticipation of a stronger market going forward. He said that "I''m holding out tons for a mid month buy. I think the numbers will be stronger."