Yesterday, we reported on ThyssenKrupp’s new strategy of using pricing formulas and price indexes as part of an annual contracting process. Though that strategy is nothing new, it highlighted the need for metal buying organizations to pay close attention to what happens within the scrap markets of their respective metals. Generally speaking, MetalMiner has not covered the ferrous and non-ferrous metal scrap markets as much as it could. Hopefully, that will change as we start reporting more frequent scrap market data from the ISRI (Institute of Scrap Recycling Industries). In its latest report published on Friday, the headline news includes higher ferrous scrap prices both for shredded scrap as well as No. 1 HMS scrap, flat aluminum scrap prices or rather, aluminum scrap prices not following firmer aluminum prices as tightly as one might expect, yet copper spreads for most grades remain tight.
ISRI quoted Platts indicating last week’s shredded scrap price increased by “$20/ton to a midpoint of $345/ton delivered Midwest. Also according to ISRI, Scrap Price Bulletin reported No. 1 HMS composite price at $303.50/ton and shredded scrap at $335.50/ton. Perhaps not ironically, several steel mills announced price increases.
On the non-ferrous side, according to ISRI, “the concern for most secondary smelters as August gets underway has more to do with what has been termed Ëœsluggish and potty’ demand for A-380 alloy than any worry about getting scrap to feed their furnaces. Copper remains tight according to the ISRI because of China buying and pressure from export markets. Aluminum scrap in China currently trades at $1899/ton while bright copper scrap currently trades at $7175/ton according to our own MetalMiner IndX(SM).
We will endeavor to publish historical scrap numbers from China over the coming days.