Early scrap buy signals higher July tags: market
Jun 26, 2013 | 02:40 PM
| Sean Davidson
NEW YORK An aggressive push for prime scrap in Ohio and western Pennsylvania by at least one steel mill rumored to be short material is expected to have a knock-on effect on scrap prices in surrounding regions as the market begins to speculate on July pricing.
Buoyed by the mills recent rush for prime scrap, several dealers said supply appears tight going into July and indicated that they expect prime material to rise anywhere between $15 and $30 per gross ton, depending on the region. Dealers said they also anticipate a pricing uptick on cut grades and shred, with speculation that obsolete prices in July could increase between $10 and $20 per gross ton.
Due to next weeks Independence Day holiday, many sources said they expect mills will attempt to tie up tons first and prices later, with the bulk of final price negotiations expected to conclude in the second week of July.
Participants forecast of a longer negotiating period in July is due to the expectation that dealers will wait out the market longer in the hope of securing better pricing.....
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