Ferrous scrap hits inflection point: OmniSource

Oct 18, 2012 | 01:17 PM | Lisa Gordon

Tags  OmniSource, Steel Dynamics, Russ Rinn, Mark Millett, lisa gordon

PITTSBURGH — Ferrous scrap prices could be nearing a rebound after facing recent downward pressure due to smaller appetites from domestic and offshore buyers, according to the top executive at Steel Dynamics Inc. (SDI).

"We believe an inflection point has been reached and ferrous scrap pricing is likely near a bottom," president and chief executive officer Mark Millett said during a conference call Thursday.

Partially behind the expectation of rising prices is the fact that scrap inventory levels have grown increasingly thin, said Russ Rinn, president and chief operating officer of OmniSource Corp., the steelmaker’s recycling subsidiary. "Inventories in the entire supply chain remain fairly lean because there is an old adage: ‘If you don’t know, sell your flow.’ It is just too risky to hold inventory."....

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