Ferrous scrap market bracing for sharp drop
Oct 03, 2012 | 05:12 PM
| Sean Davidson
NEW YORK Domestic ferrous scrap prices appear likely to settle weaker than originally anticipated in October as some early trades and a deafening silence from consumers point toward significant price erosion, according to several market participants.
In the bellwether market of Chicago, sources said at least one consumer completed some early transactions at prices that were down $45 to $50 per gross ton on both prime and obsolete grades.
Most sources had previously forecast the market would drop between $30 and $50 per ton, but on Thursday several sources said it now appears the price drop for October will be a minimum of $40 to $50 per ton.
Poor demand from the few mills that are out in the market with early offers and the absence of any real activity from the majority of the other mills has led to the heightened market bearishness, sources said.....
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