Scrap oversupply sours Texas sentiment
Feb 28, 2014 | 03:47 PM
| Sean Davidson
NEW YORK Excess scrap inventories at at least two major steel-producing plants in Texas and order cancellations by a third producer have market participants wondering if their region will be the countrys weakest in March trading.
Several market participants speculated that prices could drop $20 to $30 per gross ton due to an oversupply of scrap, with a much smaller percentage of participants contacted indicating that the declines wont be so severe.
"(This) market has been overpriced for a while, with (one producer) leading the way. They are going to pull way back this month. I dont think (one location) is going to buy anything. That, along with reduced demand from (two other producers) with more than enough scrap available for the export sales out of Houston at above the current export market, means another correction is due," one dealer source said.....
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