Ferrous

Mill buyers in North America continue to juggle and blend different scrap grades and scrap alternatives to keep a lid on their supply costs.

The high costs of raw materials are about the only down note in an otherwise upbeat market for steelmakers. Most steel companies have been reporting black ink and full order books for the past several months.

Scrap buyers have been pressured to rein in costs, but the pressure on the market appears to be too great, as prices headed back up in March and early April.

One Great Lakes Region ferrous scrap shipper says prime grades moved up from $20 to $30 per ton in early April in that part of the world, with lower grades also enjoying gains, though smaller.

But the same recycler sees hints of a slowdown in the domestic steel market, as the automotive industry may sell fewer vehicles in 2005 than in prior years.

For many, the biggest problem remains finding a way to ship scrap, as gondola cars remain hard to find, as are trucks with drivers.

In terms of generation, an Ohio scrap dealer says demolition and auto wrecking continue to produce obsolete grades while industrial scrap flows on an even keel.

Demand should stay strong, with Midwest sources reporting many inquiries from overseas brokers trying to bring ferrous scrap from the interior United States to ocean ports—even if the scrap has to be containerized.