N. American challenges remain Sims

Oct 27, 2010 | 02:11 PM |

Australian recycler Sims Metal Management Ltd. cautioned that inconsistent demand and weak inflows will remain in the North American market until the economy recovers, but pricing volatility shouldn't be dramatic as the ferrous scrap market trades sideways to higher over the balance of the fiscal second quarter.

"Ferrous markets should trade sideways to higher over the balance of our second quarter. General tightness in scrap availability, especially in North America, could result in seasonally higher selling prices with the onset of Northern Hemisphere winter, especially in the important deep-sea ferrous markets, but we do not expect to encounter significant price volatility over the balance of this half year," according to Daniel W. Dienst, Sims' chief executive officer, noting that ferrous selling prices have moved higher since bottoming at the start of the month. "A weaker U.S. dollar could support higher deep-sea ferrous scrap prices in the near term, particularly for U.S. generated material. However, until ferrous demand becomes more consistent, we expect to see....