US scrap prices likely to slide in June: market

May 17, 2012 | 04:32 PM | Sean Davidson

Tags  ferrous scrap, Sean Davidson, steel mills, export, pig iron, busheling, prime scrap

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."....

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