Mid-Atlantic ferrous scrap market participants are speculating
that prices will fall in October, with some attributing the
possible dip to steady scrap flows and weak demand.
Players in the
Cincinnati, Philadelphia and New York markets told AMM
that prices are expected to decline, with some specifying a
drop of around $10 per gross ton.
"Feedback to date is a
soft marketprices down $10 to $20 per ton. Well see
when the market develops," one consumer source in the
Philadelphia region said. "Cut grades will be less
Many scrap suppliers
also forecast the possibility of another drop in prices.
"It looks like October
will be down. The discussion now is down $10 per ton, certainly
on shred," one dealer said. "Theres weak
demandweve got mills that have had production
issues, mills that have shutdowns."
"I think the mills
smell weakness. As soon as dealers say weak
sideways, the mills pick up on the first word: weak," a
second dealer said. "This could be down $10 or more. The flows
are decent, the weather has been good, the prices are good, so
the mills know they can do it."
suppliers were skeptical that the market would see
double-figure price drops.
"Its not headed
higher, thats for sure. There seems to be some dealer
willingness to part with scrap at slightly down money, but only
a couple of dollars. The closer you get to that $10-per-ton
amount, youll get more dealer resistance," one
Philadelphia-based dealer said.
"I think flows are
only mediocre," another dealer said. "I think that all the
dealers are trying to create margin and by doing that keeping
flows pretty dry. Next month I expect a sloppy sideways