April scrap sentiment turns positive

Mar 21, 2014 | 05:46 PM | Sean Davidson

Tags  ferrous scrap, Midwest market, heavy melt, shredded scrap, plate and structural scrap, Sean Davidson

NEW YORK — Midwest market sentiment on ferrous scrap prices for April has turned positive after logistical issues, coupled with weaker scrap flows due to delayed spring weather, resulted in delicate scrap inventory positions at several steel mills.

A midmonth push by steel producers in the Ohio Valley for shredded, heavy melt and plate and structural scrap has triggered speculation by many market participants that Midwest scrap prices in April could trend from sideways to $30 per gross ton above March levels.

A majority of the suppliers polled in an informal survey said they expect scrap flows to fall below typical March volumes due to the delayed start of warm weather, which is a catalyst for scrap flow.

Scrap demand from mills is expected to be on par with March or possibly higher, regardless of whether recent finished steel price hikes are successful, buyers and sellers also suggested.

Apart from tight supply of obsolete grades, such as heavy melt and plate and structural scrap, some market participants also anticipate tighter prime scrap flows into such regions as the Ohio Valley, where scrap has already traded above early March settlement prices.....

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