March scrap market starts to shape up

According to several sources, Prices are up $20-40 per gross ton (gt), depending on the grade and region with a few districts slightly less than this.

Northern Ohio/Detroit

In the Northern Ohio and Detroit districts, most mills have entered the market for shredded at up $30/gt with HMS and P&S up $20/gt. The March price for #1 Busheling is not settled yet but will be between $30-40/gt over February price tags.

Buyers in Chicago are still on the fence in terms of price and have not yet entered the market. The word is they are attempting to keep all prices at maximum increase of up $20/gt.

South/Midwest

The same thing is happening in the Southern and Midwestern districts.

Two larger EAF buyers completed their buy with busheling and shredded purchased at up $30/gt and HMS and other cut grades up only $20/gt.

However, several other large buyers have not committed to these numbers and are still attempting to buy cheaper. They are meeting resistance.

Wherever these March settlements end up, the industry still faces continuing threats of tariffs on imported scrap.

If they are imposed in April as scheduled, any hope of reducing scrap prices to coincide with “spring clean-up” will be in peril. There is a great deal of worry and uncertainty about the general economic situation in the US. This also could weigh on future demand for both steel and its major ingredient: ferrous scrap.