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Stainless scrap dealers follow brokers lower

Keywords: Tags  stainless scrap, 304 clips and solids, 316 clips and solids, Thorsten Schier

NEW YORK — Stainless scrap dealer buying prices have fallen, matching recent broker decreases.

"(Brokers) just don’t want (material) right now. Some of them are taking themselves out of the market with their pricing," one dealer said.

The brokers that are in the market reportedly have adopted a take-it-or-leave-it approach.

"Some people are looking for material, but it depends on whether I want to sell it at these levels," a second dealer said.

Brokers lowered their prices recently to pare inventories as end-user demand has dwindled over the summer (AMM, July 4).

Dealer buying prices for 304 clips and solids in the Pittsburgh area are now between 49 and 50 cents per pound, down from 52 to 53 cents previously, while 316 clips and solids are trading at between 80 and 81 cents per pound, down from 82 to 83 cents.

A third dealer said he recently tried lowering his 304 clips and solids buying prices to the low-40-cents-per-pound range, only to find little interest from sellers. "We just weren’t getting much material," he said, prompting him to raise prices closer to AMM’s range.

One positive in the market is that consumers reportedly have stockpiled less scrap than in previous years, making it unlikely that they can decrease purchase volumes much further.

"The order books aren’t that great, but (consumers) don’t have a tremendous amount of inventory," a fourth dealer said.

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