US domestic mills resoundingly won the tug-of-war with ferrous scrap sellers this month and successfully limited the upside on prices, yet the outlook for September remains unclear, with some sellers hopeful for further increases while others believe the market may have peaked.
Ferrous scrap markets across the country - including Detroit and Chicago - saw a $20-per-gross-ton increase on most grades in August, the first price increase dealers have seen since March. Sellers who were holding back for better offers eventually caved due to various economic uncertainties. "Up $20 a ton was the trend before the month began and it landed at up $20 a ton. There never was a $30-a-ton increase in the works," a southern mill buyer said. Heightened trade tensions between the United States and China and the declining US stock market worked in the mills' favor, encouraging sellers to wrap up their August sales in case the market began to sour. "I...