Full of Scrap: Unexpectedly mild weather blindsides industry gurus
Mar 31, 2012 | 07:00 PM
| Sean Davidson
This past winter will go down in the books as an unusually warm cold season that caught the scrap industry by surprise. Relatively few inches of snow on the ground meant a steady flow of obsolete scrap, both ferrous and nonferrous, thereby altering typical seasonal trends of stronger pricing as supply tightens.
The warmth-induced scrap flows prompted a hurried recalculation of some pricing and purchase orders. Like the weather gurus, scrap gurus had to make peace with not knowing what the next month, or next week, would bring. Historic data couldnt play the willing supporter of any trend-based position as long as the weather played peek-a-boo.
But the ripple that healthy obsolete grade flows sent through the ferrous scrap industry paled in comparison with the jarring jolt it received when bulk pig iron imports flooded the market in January and February: a proper, three-bulk-cargo jolt that sent prime grades scurrying for insulation. Pig iron imports soon joined warm winter on the list of things I didnt expect in the first quarter. Some, consumers and dealers alike, called it a cunning move to put a check on prime scrap prices. Others, like large-volume brokers and sellers of prime scrap, werent so forthcoming with accolades. That currency changes allowed other substitutes to enter the market didnt help those reliant on prime scrap sales.....
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.