Ferrous Scrap Index drops less than expected
Jun 10, 2013 | 06:18 PM
| Sean Davidson
NEW YORK Midwest ferrous scrap prices outperformed pre-trading speculation this month as late cues from steel mills offered glimpses of a better market.
Scrap dealers received their first indication that prices wouldnt tumble the full $10 or $20 per ton previously anticipated when several Midwest mills opted not to cancel unfilled orders at the end of May. Cancellation of remaining orders toward the end of a month is common practice for mill buyers who expect to aim for much lower prices the following month.
One Midwest mill buyer said his mill did not cancel orders due to a decision to build inventory and better prepare for July. "I didnt cancel orders. I let dealers know I wasnt anticipating a significantly weaker market and made it easy to fill inventory by not canceling orders. Now I dont have to stretch to build inventory for July, which historically is a tighter month for prime scrap. And you need enough scrap on the ground to take you past the July 4 holiday," he said.....
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