SBQ prices lose footing as scrap, demand dip
Jul 11, 2012 | 02:45 PM
| Corinna Petry
CHICAGO Domestic special bar quality (SBQ) prices appear to be on the downswing as the $50-per-ton base price increases announced in mid-June have failed to gain traction at the same time that scrap surcharges registered a decline of $65 per ton.
The price increase, originally expected to go into effect with July 1 shipments, "did not pan out," an upper Great Lakes cold finisher said. "The reality is that we are paying as little as possible, depending on how much material we place. The mills are willing to work with you if you have a decent-size order."
A Great Lakes bar distributor confirmed that "prices are dropping," noting that because one mill "didnt go along, all of them rescinded."
A salesman for an Ohio Valley bar distributor agreed that the SBQ market had lost ground. "The price increase didnt go through. Business is terrible. I think the party is over," he said.....
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