Volatile scrap pricing to push into new year

Dec 31, 2012 | 02:13 PM | Sean Davidson

Tags  ferrous scrap, price volatility, Sean Davidson

NEW YORK — Domestic ferrous scrap pricing volatility shows little sign of abating in the new year as the market appears unlikely to adopt new pricing strategies and practices, industry sources said.

Atypical to previous years, ferrous scrap prices swung about $50 per gross ton in either direction on several occasions in 2012, and the vast majority of market players contacted by AMM predict that new month-over-month volatility is here to stay, although opinions varied on the expected size of the swings going forward.

"I do think that as long as steel mills price with only immediate goals in mind, that price volatility is here to stay," one scrap market source said. "If mills priced so as to not disrupt the flow of scrap, prices would be more stable and you would not see the drastic price swings such as occurred in (late 2012)."....

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