Midwest leads plunge in ferrous scrap prices

Jul 06, 2012 | 05:21 PM | Lisa Gordon

Tags  ferrous scrap, Sean Davidson, Lisa Gordon

NEW YORK — The U.S. ferrous scrap market received its first solid indication of price movements this month when steel mills in Detroit hit the market late Friday to send tags spiraling down $50 per gross ton across all grades.

Some consumers said unscheduled outages in June had led to drastically reduced buying programs for July, which enabled them to hit the market hard.

Buyers at a few mills said there had been some resistance from suppliers to the $50-per-ton cuts, but they were still successful in securing their required volumes.

"Some suppliers are holding back, but I think our tons will be bought. I will buy from outside and pull it in if I have to. The buy is limited," one source said.

A second source said some suppliers attempted to fight the drop by putting the focus on steady export markets and the announced sheet price increases. "But the simple truth is (that) there is more supply than demand," he said. "We knew we’d get down $50." ....

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