April scrap sentiment turns positive
Mar 21, 2014 | 05:46 PM
| 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.....
To access AMM's full content, please log in below. If you do not have an AMM account, we invite you to take a free trial or subscribe below.
Already a registered amm.com user?
Access to amm.com editorial content is granted only to paid subscribers and trialists. If you do not have an active account in your own name, please either subscribe or take a trial and you will have instant access to amm.com content. Sharing your login credentials with individuals who are not subscribers represents a violation of AMM copyright.
Every morning, every minute no matter how often you follow the markets, there's an AMM subscription to fit your needs.
Not sure if you are ready to invest in a subscription right now? Take a free, no-obligation trial. Start your free trial today.