US prime scrap market bracing for steep drop

Jun 01, 2012 | 01:47 PM | Lisa Gordon

Tags  scrap prices, No. 1 busheling, bundles, prime scrap, 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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