United States domestic shredded scrap prices monthly average gained over $7 a long ton month-on-month in July as prices recovered from recent falls in May and June.
“Buy-week” for July saw the price of shredded scrap in the US Midwest rebound from the falls seen in recent months. TSI’s index for the region gained over US$7/long ton or 2% month-on-month to reach $379/long ton (delivered mill).
Once trading got underway at the beginning of the week it was evident that a familiar picture was emerging, with significant re-gional pricing disparity.
Prices cooled off as the week progressed, with mills finding little resistance when pushing for lower pricing as there was plentiful scrap to meet their needs. Mills with low scrap inventories kicked off the buying at levels up to $15/long ton higher than June pricing. Meanwhile, those who could afford to wait in the hope of prices softening were rewarded, with yards eventually yielding to mills and prices moving sideways-to-slightly-up by the end of the week.
Prices were kept in check to some extent by traditional East Coast exporters focussing their attentions on selling material domestically. This served to increase supply into the Midwest region, helping to keep a lid on the extent of July price increases. This is because domestic pricing was still more favourable for yards than exports, despite the inland freight costs.