Shredders hopeful, see hints of price bottoming
Apr 13, 2012 | 12:24 PM
| Lisa Gordon
Tags
shredded scrap,
export prices,
Lisa Gordon
PITTSBURGH — Shredder operators looking to improve what have been razor-thin margins see a ray of hope, with market expectations hinting that the shredded scrap market might be nearing bottom as the gap between export and domestic pricing narrows.
After taking a financial hit for a few consecutive months, shredders have been facing increased idle time, which is creating tightness in the market. "This whole thing has reached a boiling point," said a source at one scrap supplier that operates throughout the United States.
Some recyclers paying $335 per net ton at the scale and selling shred to the mills at $435 per gross ton delivered claim they are losing more than $40 on each ton sold. Others say they are making just a few dollars on each ton.
"I’m not going to wear out a perfectly good piece of equipment to lose money," said one Southeast shredder operator, who is now running just two-and-a-half days each week.....
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