Midwest scrap market predicts big Oct. drop
Sep 27, 2012 | 05:31 PM
| Sean Davidson
Tags
ferrous scrap,
scrap prices,
Midwest scrap market,
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 business—i.e., domestic scrap demand vs. domestic scrap availability. ... With steel imports, attrition on flat-rolled pricing and marginal export demand, it’s 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.....
To access AMM's full content, please log in below. If you do not have an AMM account, we invite you to take a free trial or subscribe below.
Already a registered amm.com user?
Access to amm.com editorial content is granted only to paid subscribers and trialists. If you do not have an active account in your own name, please either subscribe or take a trial and you will have instant access to amm.com content. Sharing your login credentials with individuals who are not subscribers represents a violation of AMM copyright.
Every morning, every minute — no matter how often you follow the markets, there's an AMM subscription to fit your needs.
Subscribe Now
Click Here
Not sure if you are ready to invest in a subscription right now? Take a free, no-obligation trial. Start your free trial today.
Take a Free trial
Click Here