Pittsburgh (Platts)--7Dec2012/401 pm EST/2101 GMT
A December US steel industry benchmark shredded scrap price used to set most long product and plate prices settled Thursday $1/lt below its November level and market participants surveyed welcomed the relative pricing stability. A midwestern rebar fabricator said that because the scrap price was essentially unchanged, he believes prices for December shipments will hold for January shipments. He said his company has yet to rebar in December because it bought more tons before an earlier $35/st December price hike took effect. The move is in line with the Platts daily midwestern scrap price assessment which has been $382-387/lt delivered to midwestern mills since November 27. The price represents a $3 drop from the $385-390/lt price assessment in early November. One eastern service center source said that this pricing stability could lead to a pickup in the market. "We're waiting to see what the big guys (the major long products mills) are going to do," he said. Nucor, Steel Dynamics, Gerdau Long Steel North America and Commercial Metals all announced price increases of $35/st for heavy structural products, merchant bars and rebar in mid-November. While Gerdau declared its price increase in effect with all new orders after November 12, the other mills applied their price increases beginning with December shipments. The eastern service center source, who buys structurals, merchant products and rebar, said he believes the market is still figuring out whether the full price increases will stick. He said he already paid $35/st more for his heavy structurals and merchant bar purchases.--Estelle Tran, estelle_tran@platts.com --Edited by Jeff Barber, jeff_barber@platts.com--Estelle Tran, estelle_tran@platts.com