NEW YORK Prices for high-grade twitch, or shredded nonferrous automotive scrap, could be set to edge lower as several major consumers appear to be "backing away from buying" and are "paring down on inventory," sellers said.
Most sources pegged the price for high-grade twitch at around 78 to 80 cents per pound, down a penny on the low end from the end of September.
As the year comes to a close, consumers are trying to avoid buying too much material, one seller source told AMM.
"I think whats happening is its coming to the end of the year and people dont want a lot of inventory on the books," he said. "I have talked to a couple of consumers who have been backing away from buying and will continue to do so going into November."
The tepid buying activity will likely lift supply, sellers said, adding that the recent government shutdown had caused consumers to adopt a more measured approach.
"We are hearing that things are more plentiful as of recent," a second seller said. "I think there could be some pressure on the down side just because there is a lot of material out there at the moment."
One major consumer has exited the market completely for November, according to a third seller.
"One of the consumers we do business with is out of the market for November, which means they will not be buying for December. I think people have plenty of material and there is some fear that the market is going to come down."