Auto cuts, outages take bite out of ferrous scrap
Oct 06, 2006 | 02:50 PM
| Michael Marley
Prices of industrial steel scrap are down as much as $35 a long ton in major steelmaking markets this month, while less-desirable obsolete grades are off by only $10 to $15 a ton, sources said.
The so-called prime grades of steel scrap—baled and loose sheet steel from stamping and other manufacturing plants—have lost the luster they enjoyed much of this year because of growing weakness in the flat-rolled steel market and both scheduled and unscheduled production outages at many sheet mills.
The declines in dealer-market grades of industrial scrap came close to matching the price decreases seen in the sale of some of the auto industry's factory bundles late last month. Prices for the auto bundles, which are often seen as a bellwether of prompt steel scrap pricing trends, were down by an average of $38 a ton as measured by the AMM Factory Bundles Index.
Several scrap brokers and processors pointed to production cutbacks by automakers as the main driver for the price slide. Demand for sheet steel has faltered in recent weeks, and some flat-rolled mills are curtailing steel production and therefore buying less scrap from outside suppliers. Some mills also have scheduled maintenance work, thus reducing steel production, while others have said they will trim raw steel output to bring inventories in line with demand.....
To access AMM's full content, please log in below. If you do not have an AMM account, we invite you to take a free trial or subscribe below.
Already a registered amm.com user?
Access to amm.com editorial content is granted only to paid subscribers and trialists. If you do not have an active account in your own name, please either subscribe or take a trial and you will have instant access to amm.com content. Sharing your login credentials with individuals who are not subscribers represents a violation of AMM copyright.
Every morning, every minute no matter how often you follow the markets, there's an AMM subscription to fit your needs.
Not sure if you are ready to invest in a subscription right now? Take a free, no-obligation trial. Start your free trial today.