US scrap prices likely to slide in June: market
May 17, 2012 | 04:32 PM
| Sean Davidson
NEW YORK U.S. steel mills, dealers and brokers say they are anticipating a softer domestic scrap market in June, with early speculation ranging from "soft sideways" pricing to a drop of between $5 and $20 per gross ton across all grades, market participants told AMM.
Sources spread across several regions of the country shared the slightly bearish sentiment, which was fueled by weaker export markets, moderate mill demand and sufficient scrap supply.
Though sources offered forecasts ranging from a flat market to a down-$20 market for obsolete and prime grades of scrap, consensus suggests prices are expected to drop by around $10 per gross ton.
"I envision all grades weaker in June, down $10 to $20 (per gross ton)," said one consumer. "(The) export market is nonexistent right now and mills are comfortable with inventory. Domestic mills have a better chance of reducing operating rates than increasing going into June. Scrap supply side is not abundant, but still more than 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.