An overhang of obsolete material at the end of negotiations in the March ferrous scrap trade in the United States has sellers mixed over what is in store for April.
While mills are still chasing and open to buying prime material for the March order books, secondary grades - including No1 heavy melt and shredded scrap - are only able to find homes if sellers are willing to sell below market value."'No, thank you' prices from the mills are looming," a seller into the Ohio Valley and Southeast said, referring to price offers the mills issue that they expect will be rejected. "I expect mid-month downward adjustments are coming for shredder feed. The first sale was the best sale; and at these prices, scrap is coming out of the woodwork. At the same time, busheling could get even tighter."For the most part, the Midwest, Ohio Valley and most of the Southeast had mills offering to pay up $70 per gross ton for prime material and $50 per gross ton for secondary material.The trade,...