Rail, trucking woes curb scrap shipments
Jan 27, 2014 | 03:44 PM
| Lisa Gordon
PITTSBURGH Rail and truck issues are disrupting shipments of scrap metals and frustrating recyclers, who might lose sales if mills exercise cancellation rights amid an anticipated drop in February prices.
It is too early to tell how the stalled rail car deliveries will affect existing orders but mills traditionally have the right to cancel any orders not received by the last day of the month. When mills expect prices to fall they have previously exercised this right, then re-entered the market and bought the same amount for less money.Prime ferrous scrap prices are estimated to drop as much as $30 per gross ton in February (amm.com, Jan. 24), equating to a $240,000 loss on an 8,000-ton sale.....
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