Scrap market tempers Dec. price expectations

Nov 28, 2012 | 03:41 PM | Sean Davidson

Tags  scrap, Midwest, ferrous, steel mills, sean davidson

NEW YORK — Earlier expectations of a $20- to $40-per-ton run-up in ferrous scrap prices in December have largely subsided, with most market participants now forecasting a "strong sideways" market and a few even predicting slight downward pressure if demand from steel mills and the export market slips.

Although many had said in mid-November that prices could rise as much as $40 per gross ton next month based on seasonal trends, most Midwest sources are now offering a consensus view of a sideways-to-up-$10 market.

Only one Midwest supplier said he still expects the same $20 to $40 increase, even as some market players predicted prices could lose as much as $20 compared with November.

"December should be even, with slight downward bias if export doesn’t kick in," one buyer said.

For the most part, however, buyers and sellers have pegged the December scrap market to trend sideways—although most conceded it was too early to say for sure.....