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    Analysis

    October 3, 2013

    Final Thoughts

    Written by John Packard

    A quick note about ferrous scrap. From the early deals being done – and there are still a number yet which need to be completed. Our sources are advising us that scrap prices have been trading lower by $5 to $10 per gross ton in the east.  However, in the Midwest there have been trades made in the Chicago/Northern Indiana markets at the same numbers as September. We are hearing prime grades of scrap such as busheling traded sideways in Cincinnati and in Ontario.  In Pittsburgh and Birmingham we heard primes off $5 per gross ton. The market appears to be a little better than what one dealer had forecast over the weekend when he projected prices to be lower by as much as $20 per gross ton on prime grades.

    Peter Wright mentioned in an article above how the shutdown of the government is affecting public data which is released on a daily, weekly or monthly basis.  One of the items affecting are imports and exports. The U.S. Department of Commerce website concerning imports is usually updated every Tuesday around 5 PM ET. No update this week.

    John Packard

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    November scrap prices rise as market nears settle

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    SMU scrap market survey results now available

    SMU’s November ferrous scrap market survey results are now available on our website to all premium members. After logging in at steelmarketupdate.com, visit the Pricing and Analysis tab and look under the “survey results” section for Ferrous Scrap Survey results. Past scrap survey results are also available under that selection. If you need help accessing the survey results or if your company would like to have your voice heard in our future surveys, contact smu@crugroup.com.

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    Market chatter: Supply, not price, dominates steel buyers’ concerns

    On Monday and Tuesday of this week, SMU polled steel buyers on an array of topics, ranging from market prices, demand, and inventories to tariffs, imports, and evolving market events. We are sharing a selection of the comments we received below, in each buyer’s own words. Before diving in, we reviewed all the responses collected and compiled these key takeaways: Respondents overwhelmingly anticipate further increases. Buyers cite limited supply, mill delays, low inventories, and steady-to-strong demand. Most say demand is generally stable to improving, with some purchasing driven by fears of higher prices or unavailable material rather than stronger underlying consumption. Most respondents report faster inventory turnover, while shortages are constraining sales and, in some cases, prompting customer allocations. Buyers increasingly see imports as a way to secure scarce material, though domestic-origin requirements, delivery timing, and pricing risks remain obstacles.