There is pessimism brewing on the next direction of prime scrap, yet optimism is brightening the outlook for secondary grades such as shredded scrap.
Usually in a downward market, mills drag out their entrance to psychologically push sentiment lower. The mills bypassed this tactic in September and entered on the second day of the month, knowing full well that time was not on their side with two holidays interrupting the trade.
By Tuesday September 7, mills were in and out of the market, for the most part, with prime scrap falling by $40 per gross ton in the US South and $50 per ton in the Midwest and Ohio Valley. Prime scrap held up better in the South, in a catch-up move from the prior month because in August No1 busheling was sideways in Chicago and down $10 per ton in Alabama.
Secondary scrap fell $20 per ton in the South and $25...