Ferrous scrap prices said set to drop again
Apr 25, 2013 | 05:18 PM
| Sean Davidson
NEW YORK A struggling ferrous scrap export market and weakness in several finished steel product segments have led many to speculate that the domestic scrap market will be weaker in May.
In an informal survey this week, nearly half the market participants contacted by AMM said they expect scrap prices could drop by between $15 and $20 per gross ton next month, with about one quarter saying they could drop even further and the remainder undecided on their May outlook.
An equal number of mill buyers and scrap suppliers said they expect monthly prices are poised to soften by $15 to $20 per ton next month, with even some sellers and brokers suggesting that prices for some grades could fall by as much as $25 per ton from April levels, which were down about $20 from March prices.
In Detroit, at least one steel mill reportedly has already concluded some deals for obsolete grades of scrap at down $20, but a majority of buyers and sellers said they had not heard of or concluded any recent transactions.
Many market participants in Illinois and Indiana said they are still uncertain on price direction due to logistics issues caused by recent river flooding (amm.com, April 23). Some sources suggested that transportation issues along the Illinois and Mississippi rivers could have a negative impact on scrap flows and offer some support to May tags, while others speculated that the impact would be minimal.....
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.
Not sure if you are ready to invest in a subscription right now? Take a free, no-obligation trial. Start your free trial today.