Midwest scrap market predicts big Oct. drop
Sep 27, 2012 | 05:31 PM
| Sean Davidson
NEW YORK Midwest steel mills are expected to enter the scrap market by the end of next week to announce their buying programs for October, although market participants told AMM they anticipate lower demand due to announced outages brought on by weaker demand for finished products.
The likely drop in scrap volumes booked for October delivery is expected to send obsolete and primary scrap grades down by $30 to $50 per gross ton, according to early market speculation.
"With export demand waning, it is now a one-to-one equation when considering domestic businessi.e., domestic scrap demand vs. domestic scrap availability. ... With steel imports, attrition on flat-rolled pricing and marginal export demand, its hard to see markets not going down $40 to $50 heading into October. This, however, could be a firm bottom. We may drag a while, but this could be a bottom on the supply side," one source said.....
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