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Scrap Metal Prices

Scrap Metal Prices

The words “scrap shortage” won’t be part of the scrap industry’s vocabulary in November. The shortage of export
sales and the mild weather throughout the U.S. have created surpluses of shredded scrap and heavy melt. That will
enable the mills and their brokers to name their prices. The industry’s rumor pipeline has been filled with talk about
the market declining since the beginning of October. Each week since, participants have chopped another $10 off
their forecasts for November.
The first fruits of this pessimism were harvested this week. A northern Ohio mill bought much of the shredded
scrap it will use in November at $335 per gross ton delivered to the mill, down $30 from what it paid at the beginning
of October. Part of that material will be coming from a large East Coast shredder, which could force some shredders
in Ohio to look for homes elsewhere for their scrap. Another major Eastern shredded producer sold all of its
anticipated output of 60,000 tons to a broker at $30 per ton below what it got earlier this month.
That activity echoes what has already been heard in the South. One major flat-rolled mill was busy last week and
again this week buying shredded scrap from several suppliers at prices that are as much as $37 per ton below what it
paid this month. Industry sources said they expect the prices of No. 1 busheling will tumble by as much as $30 per
ton next week in that region and elsewhere throughout the country.



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