By Paul Ploumis 22 Sep 2015 Last updated at 06:01:24 GMT
SEATTLE (Scrap Monster): The US domestic shredded scrap market witnessed further downside during the second week of current month. The scrap buying prices witnessed further decline, dropping to their lowest levels in six years. The shredded scrap prices fell to $210-$215 per long ton, touching the lowest levels since May 2009.
The scrap purchase prices by steel mills in Detroit and Ohio Valley dropped to $210-$215 delivered at mill per long ton. This is considerably down by nearly 10% when compared with the September settlements that were concluded just two weeks back. The shredded scrap September settlements were finalized at $225-$240 per long ton delivered mill. The prices have since then dropped by almost $15-$25 per long ton.
The Midwest shredded scrap deals settled at $210-$215 per long ton delivered mill on Friday, significantly lower by $15 from the previous day. Dealers were seen negotiating for $220-$225 per long ton for shredded scrap. However, buyers were seen keener in settling for lower prices.
Scrap supply has been adequately strong enough for some time, noted brokers. The flows have begun to decline slightly, but the demand too has fallen. Dealers find no real reason for scrap prices to rebound in the near term. The global scrap market fundamentals continue to remain weak. This definitely is going to hurt US domestic scrap market in the near term, they added.