Demand for steel, aluminum firm as scrap starts to find support

Primary aluminum and flat-rolled steel prices were supported during the week ended Oct. 8, as input costs started to strengthen.

US hot-rolled coil and aluminum Midwest transaction prices held just below record highs, mill margins have lost some steam but also remain near records, as challenging logistics have supported finished prices.

Demand for these products and secondary alloys remain solid, even as automakers’ semiconductor chip shortages and lack of staff at plants challenge nonferrous and ferrous market participants. Global scrap grades have started to find support as demand has picked up for most grades.

These were among the continuing trends this week in S&P Global Platts’ new low-carbon metals spreads and ratios – a suite of eight price references launched Aug. 13 that allow users to compare low-carbon feedstocks with traditional higher-carbon inputs.