Foul weather, improved demand at the mill level and low inventory levels are working together to drive scrap prices upward, industry sources said. And while the Midwest looks poised for a modest price increase, other regions appear to be bracing for a healthy bump up.
Prices have risen for the past two months, largely as a result of the stronger mill demand for scrap and unusually heavy snowfalls throughout the country this month.
Several brokers and dealers said they have heard of only one confirmed buy in the market?shredded at $355 per long ton delivered to a Midwest mill. That price is up about $25 per ton from the level paid this month for the fragmented scrap.
Some steel mills are bringing mothballed operations back online this month, and others have said they plan to raise output, a Chicago broker said.
At the same time, the snowy weather that...