The ferrous scrap market in the United States may have peaked in June, according to sources, with many market participants convinced that there could be downside for the July trade unless finished steel orders or finished steel prices increase.
The June trade was mild compared with May. The price for No1 busheling in Chicago moved up by a modest $10 per gross ton to $320 per ton in June after jumping by $40 per ton the month before.One mill source said that mills cannot continue to pay $320 per gross ton ($285.70 per short ton) for No1 busheling when hot-rolled coil is selling in the $520-per-short-ton range.Fastmarkets' daily steel hot-rolled coil index, fob mill US was calculated at $25.98 per hundredweight ($519.60 per ton) on Tuesday June 9."Busheling will drop in July. Flat-rolled mini-mills are running at 70-80% capacity but losing money at these prices," the mill source said.During the trade, a Southeast source said that mills "like to work on a $200-per-ton margin but can live with a $180-per-ton margin.""In order for July to increase, either finished steel prices would have to increase or the utilization rate would...