US ferrous scrap prices seen softening in June
May 24, 2013 | 03:32 PM
| Sean Davidson
NEW YORK Ferrous scrap prices appear to be leaning toward another price drop in June, according to early market speculation.
Although price trends are expected to vary significantly for different grades and regions, most sources surveyed by AMM said they expect a sideways or slightly softer June pricing environment.
"The general consensus seems to be unanimous in thinking that June will show additional softness. This generally becomes a self-fulfilling prophecy," said one broker who expects the price differential between prime and cut grades to widen a little in June.
Most mill buyers and suppliers said they anticipate some Midwest markets to be weaker than the Ohio Valley and Mid-Atlantic, with the South and Southeast expected to fall somewhere in between. The variations will relate to supply and demand balances, which appear to be at equilibrium in some regions and not so far off in others, according to several sources.
A buyer for one steel producer said he expects prime grades in Chicago to drop $10 per gross ton and shredded scrap to fall $15 per ton from May, while prices in the Ohio Valley could trend sideways on prime grades and be down $10 on shred.....
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