crainThe 5th effective issue of the American Metal Market was released yesterday, February 7th, showing a small decrease in Chicago’s scrap market. Despite earlier speculation, there was only a slight drop of an average of $9 per gross ton across the board. According to the American Metal Market’s article published February 4th, 2013, February Scrap Prices Appear Poised for Fall” by Lisa Gordon, there was speculation of a drop in the market of $15-$20 per gross ton. According to Gordon, “An ample supply of raw material, mediocre mill demand and bearish mill buyers” were some reasons for the expected drop in the scrap market in February. Another reason some were speculating a drop in Chicago’s scrap market in February was due to the fact that many mills were canceling orders in January. On the other hand, a Chicago scrap processor believed there would be as much as a $20 drop in the market if there wasn’t enough resistance from sellers.

As of yesterday, No. 1 Heavy Melt settled at $349 per gross ton in Chicago, down $9 per gross ton from January. According to the American Metal Market’s article by Sean Davidson “Chicago Scrap Market Among Feb.’s Strongest“. It is believed that Chicago is the strongest scrap market for ferrous scrap this month because mills didn’t want to risk pushing prices to0 low and not be able to fill orders. The scrap markets settled lower by $9-$10 a gross ton depending on the grade. One commodity of ferrous scrap that settled sideways from January to February was Machine Shop Turnings at $240 per gross ton. Both No. 1 Busheling and No. 1 Bundles are down $10 per gross ton.  The strength of Chicago’s scrap metal market could be due to a number of factors. One of them being weather  and other sources believe there were higher than expected prices in Chicago because mills were beginning to recognize there was not a lot of scrap in the market.

Although, I am not happy about the decrease in Chicago’s scrap market for the month of February, I am glad Chicago was among February’s strongest markets! For any information on Chicago Scrap Metal pricing, please contact us at B.L. Duke!