Scrap dealers eye stable, stronger Sept.

Aug 20, 2012 | 03:53 PM | Lisa Gordon

Tags  scrap prices, shredded, heavy melting scrap, cut grades, prime grades, Lisa Gordon

PITTSBURGH — After six months of extreme volatility, early indications suggest ferrous scrap prices may remain relatively stable in September, with most dealers predicting a sideways to slightly up market as scrap enjoys a brief moment of tranquillity.

Increased sales to export markets and decent demand from domestic mills are both working to keep the near-term scrap arena on a flat to slightly stronger course, leading few players to a expect a big pricing swing in either direction come September.

Contributing to the stable or modestly stronger pricing outlook is the fact that some mills are already making queries and looking for additional tonnage of shred and cut grades, one broker said. At the same time, mills’ buyers are reporting that recent steel price increases are starting to stick, at least in part, and order books for September production are filling up. ....