Supply pushes Midwest scrap prices down
May 12, 2014 | 06:12 PM
| Sean Davidson
NEW YORK A disconnect between demand from Midwest steel mills for obsolete scrap and increased supply resulted in retreating prices this month that erased any gains recorded in April.
In a market that was bullish prior to May, reports of large volumes of shredded scrap on offer from East Coast exporters combined with a realization that Ohio Valley mills would push aggressively to correct an overpaid April market and news that one Chicago-area mill would buy no scrap in May to rapidly soften pre-trading bullishness.
Sentiment turned negative as soon as trading kicked off early in May, and as some mills succeeded in sending some prices lower, buyers deployed a typical tactic aimed at weakening prices: delaying offers of firm prices to see if nervous dealers would bite on lower bids.....
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