August steel scrap US price settlements much higher than July

More US scrap price negotiations for August steel mill requirements were concluded through Friday with prices surpassing July's low levels by wide margins -- and in some cases -- also exceeding June pricing, market players told Platts.
Supply-side issues pushed up prices for August scrap volumes, and by the time most negotiations were well under way on Wednesday, price offers were heard to be $50-70/long ton higher than early-July prices.
The price of benchmark ferrous scrap averaged $431.36/lt delivered to Midwest mills in May, $374.29/lt in June, and $336.90/lt in July, based on Platts market data.
On Friday, the Platts daily assessment for shredded scrap moved up $42.50/lt to $405-410/lt delivered Midwest US mill with shredded being sold for as high as $425/lt in the Southeast.
Prices for other grades settled at $410-415/lt for No 1 busheling, $390-395/lt for plate & structural scrap and $350-355/lt for heavy melting scrap, all delivered Midwest mill, according to market participants.
Deals for shredded scrap in the Ohio/Pennsylvania area were reported at $400/lt earlier in the week, but had moved up to $410/lt by Thursday.
"Pricing is just all over the place based on different buy programs," one East Coast scrap trader said.
An eastern US-based scrap yard source added, "We are riding the coattails of the steel industry. When they are running over 70-75%, there is demand and I think operating rates have been pretty consistent, but it is the supply end of things causing the [August] spike in the market -- this is an inventory issue."

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