Mixed signals have emerged over the next direction for the US Midwest ferrous scrap market, but sources seem fairly certain that No1 busheling could face its first downward correction since August 2020 in the next round of trading.
September's outlook is murky. Some feel shredded scrap could hold up due to strong demand, while others disagree; and while there is consensus that prime scrap could drop, views vary as to the steepness of that anticipated decline.If the post-August settlement provides any clues, mills are still actively seeking shredded and cut scrap at the $20-per-ton discount established in the August trade. At the same time, mills have been offering as much as $30 per ton lower for No1 busheling scrap, which was sideways in the Midwest and down $10 per ton in Alabama in the August trade.After half-hearted resistance by mill agents, the August trade was swift, with Midwest mills agreeing to keep No1 busheling unchanged while lowering cuts and shredded scrap by $20 per ton. Busheling sellers successively staved off mills' unsuccessful attempt to...