Low-volume deals point to sideways scrap mart

Aug 30, 2012 | 05:17 PM | Sean Davidson

Tags  ferrous scrap, scrap prices, Sean Davidson

NEW YORK — Early, small-volume deals on ferrous scrap for September delivery have transacted this week at mostly sideways prices, with most regional markets not expected to settle until late next week.

Market participants across the country said they expect the bulk of September trading to occur within a narrow range that is up or down $10 per gross ton from August price levels as few dynamics look poised to drive the market significantly in either direction.

More definite price indications could become available late Thursday or early Friday, however, as one large broker and a one large mill were widely expected to enter the Midwest market.

In the Midwest, sources said demand for ferrous scrap next month will likely be at normal levels and not as high as the large scrap intake reported in August, which caused a big spike in prices. With demand expected to be more tempered, most consumers said they expect prices to remain unchanged from August or dip only slightly.

"My guess is that demand will stay steady to drop slightly in September," one large consumer said.....