US prime scrap market bracing for steep drop
Jun 01, 2012 | 01:47 PM
| Lisa Gordon
PITTSBURGH A multi-month slide in prime scrap prices looks poised to continue, with market participants expecting premium grades to take the biggest hit in June.
"The $20 a ton we were talking down on prime last week has gone way past that number at this point. There is an oversupply that will remain for at least 60 days," a Midwest mill buyer said Friday.
Players in the market are now projecting that prices could fall by as much as $35 per ton in some regions when mill buyers return to the market Monday to begin their June business.
"I have been steadily offered primes at lower numbers starting a week ago Wednesday," an eastern broker said. "Offers came in at $435 a gross ton, then $425 and now $420, which would be down $35. Dealers are very willing to lock in orders at to-be-determined prices."....
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