Prime Scrap Increases for October; Spot HRC Continues to Climb
The word from market participants in the ferrous scrap buying and selling trade is that sellers dug in their heels during the monthly buying period and mills acquiesced. The result: prime scrap increases of between $15-$30 per gross ton for October, depending on grade and location, the first upward move in several months.
“It took a little longer this month,” one scrap seller told WSD, “but prime moved up to about $470-$480 per gross ton in most regions.”
Along with the steady price climb in the spot hot-rolled coil (HRC) market, domestic mills are also commanding strong prices for plate, long products and structurals like beam. “There’s room for everyone to do well in this market,” the scrap seller said, justifying the increase in prime material, as well as some other grades like No. 1 heavy melt.
Indeed, both buy and sell-side market players tell WSD that the spot price of HRC — if mills will even take an order in an ever-tightening market—is now solidly firm at $1,260 per ton.
Nucor on Monday hiked its Consumer Spot Price (CSP) for HRC to $1,240 per ton, which is regarded as the absolute floor. The steelmaker also increased its west coast price for CSI offers to $1,305/ton, or $65 per ton above its Midwest and southern-US mill offers.
“The western US tends to draw more imported material (than other regions),” a trader noted, “So, Nucor raising CSI to above $1,305 per ton likely reflects that offshore mills are not exporting as much as expected.”
Meanwhile, HRC futures contracts through February all opened higher in early-AM Tuesday trading, with November through February all above $1,300 per ton.