New York (Platts)--3Mar2011/549 pm EST/2249 GMT
The Platts price assessment for shredded scrap delivered to Midwest US mills slipped $2.50/lt Thursday to a new midpoint of $452.50/lt as more sources completed March sales in what is shaping up as a largely soft-sideways move for March from February pricing. One longtime Ohio Valley scrap buyer purchased his March requirement at $450/lt delivered mill, down $5/lt from his February buy at $455/lt delivered. "Everything else is sideways," he said, referring to other grades of scrap, for which he did not provide exact figures. Heavy melting scrap No. 1 is being sold into mills at $400-410/lt, and cut plate/structural at $420-430/lt, both roughly equal to February pricing. "$450/lt [for shredded] seems to be the number in our neck of the woods," said a Northeast scrap dealer. He sold plate/structural at $420/lt delivered and put HMS No. 1 at $400/lt delivered mill. He said scrap flows to the shredder were OK and described mill demand for March scrap as steady, echoing previous comments from other market participants. Request a free trial of: Steel Markets DailyPlatts Steel Markets Daily features 450 prices, complete news coverage, and in-depth analysis of global market developments around the world. Each weekly issue includes a wrap-up of the previous week's price movements, plus in-depth interviews with key market participants and outlooks for global supply and demand. "Yes, the market is basically sideways," said an Atlantic Coast scrap broker/dealer. He added that the pace of sales was accelerating and "...I get the feeling that if you do not get your shredded sold by today, you may have missed the boat." Like the Northeast scrap dealer, the Atlantic Coast broker noted adequate inbound shredder flows. "I am hearing reports that the flow of shred feed is improving," he told Platts, which could beef up the supply side. He said, "There may be some excess shred out there," which if true, could put downward pressure on prices. In fact, the Atlantic Coast source was concerned about such a possibility. "I really do not like the market going forward and have reduced my buy program for March. I do not want to end up the month with an excessive amount of inventory on the ground," he reasoned -- in one of the first references to a potential softening of scrap markets moving into April. --Matthew Lerner, matthew_lerner@platts.com
The Platts price assessment for shredded scrap delivered to Midwest US mills slipped $2.50/lt Thursday to a new midpoint of $452.50/lt as more sources completed March sales in what is shaping up as a largely soft-sideways move for March from February pricing. One longtime Ohio Valley scrap buyer purchased his March requirement at $450/lt delivered mill, down $5/lt from his February buy at $455/lt delivered. "Everything else is sideways," he said, referring to other grades of scrap, for which he did not provide exact figures. Heavy melting scrap No. 1 is being sold into mills at $400-410/lt, and cut plate/structural at $420-430/lt, both roughly equal to February pricing. "$450/lt [for shredded] seems to be the number in our neck of the woods," said a Northeast scrap dealer. He sold plate/structural at $420/lt delivered and put HMS No. 1 at $400/lt delivered mill. He said scrap flows to the shredder were OK and described mill demand for March scrap as steady, echoing previous comments from other market participants.
Platts Steel Markets Daily features 450 prices, complete news coverage, and in-depth analysis of global market developments around the world. Each weekly issue includes a wrap-up of the previous week's price movements, plus in-depth interviews with key market participants and outlooks for global supply and demand.