[Steel Price] US Shredded Scrap average prices rise to $281.20 a long ton in June

UNITED STATES July 22 2015 10:15 AM

NEW YORK (Scrap Register): US shredded scrap prices for domestic deliveries bucked the downbeat international trend in June. The monthly average increased by $14.45 a long ton or 5.4% month-on-month to $281.20 a long ton delivered Midwest mill.

According to The Steel Index, strong demand for scrap, in particular shredded, came from integrated mills in the Chicago and Detroit areas, catching up with the relatively strong demand from EAF producers in May. This was in line with a gradual increase in capacity utilization at US mills throughout May and June.

East Coast export yards were heard buying up large volumes of material, taking advantage of prices that buyers perceived to be favourable. Yards may have been counting on Turkish mills ramping up production post-Ramadan ending mid-July. With the latest price movements seen in early July, this call may prove ill-fated.

NASDAQ announced it would list the first US shredded steel scrap futures contract in September this year. This will be settled using a new TSI shredded scrap index representing the volume-weighted average price of deliveries to Midwest steel mills during the first ten days of each month.