US domestic ferrous scrap prices dropped by $10-30/gt during February trade this week compared to January levels. There was considerable variance by region, creating some contention toward the end of the trade cycle.
Ferrous scrap prices during February trade varied, based on grades, and region, with prices for scrap in the Midwest trending down by $10-30/gt on primes, such as #1 busheling and decreasing by $20-30/gt on shredded, P&S 5ft, and HMS grades. The prices for turnings traded down at $30-35/gt.
Pittsburgh markets were down by $30/gt on shredded and cut grades as they were well supplied but decreased only $20/gt on most prime material.
In Chicago the ferrous market, which was also well supplied in obsolete grades, saw the Davis Index for shredded scrap decrease by $23/gt to $279/gt delivered, down from $302/gt, a month ago. For cut grades the Index decreased by $20/gt to $259/gt for P&S 5ft delivered, and by $30/gt to $239/gt for HMS 1&2 (80:20) delivered.
The Cincinnati-Indianapolis region, at the hub of pricing variation from surrounding markets, settled late this week, with the Davis Index on #1 busheling decreasing by $19/gt to $296/gt, down from $315/gt, P&S 5ft decreased $21/gt to $262/gt, shredded decreased $30/gt to $278/gt, and HMS 1&2 (80:20) decreased $26/gt to $247/gt, all prices in delivered terms.
The Southern region and coastal markets such as Philadelphia that are affected by relatively weak export activity saw the most significant price decreases of $30-35/gt across prime, shredded, and cut grades.
The Davis Index in Philadelphia for #1 busheling decreased by $33/gt from $293/gt, to $260/gt delivered to mills. Material previously destined for the export market moved inland and competed with regional domestic scrap sellers, driving the Davis Index for P&S 5ft in Philadelphia down to $240/gt delivered from $273/gt, a $33/gt decline.
In Birmingham, the Davis Index for #1 busheling decreased $30/gt to $300/gt delivered while, HMS 1&2 (80:20) decreased by $28/gt to $266/gt delivered. P&S 5ft decreased $29/gt to $287/gt delivered, and shredded decreased $31/gt to $286/gt delivered.
Most regional Davis Index indices through the South and Southeast declined by $26-33/gt on prime grades such as #1busheling and cut grades such as shredded. P&S 5ft in the Carolinas declined by $38/gt to $263/gt delivered while shredded in Arkansas decreased by $36/gt to $285/gt delivered.
Some market participants reported the possibility of late negotiations on Friday that could see some deals closing at prices below $40/gt compared to January settled prices but there were no confirmed deals at that level by the end of the day.
In Canada, Dofasco entered the market on Friday down C$4/nt ($3.37/gt) for prime grades and down C$18/nt ($15.15/gt) for cut grades.