Steel Products
SMU Panelist: Scrap Prices Poised to Rise
Written by Tim Triplett
August 2, 2017
Ferrous scrap prices are poised to rise in the NAFTA region for several reasons, says John Harris, CEO of Aaristic Services, Inc., and former director of Raw Materials for ArcelorMittal. Harris is part of a panel that will take a deep dive on commodities during the Steel Market Update Steel Summit Conference Aug. 28-30 in Atlanta.
Scrap is in high demand for the following reasons, Harris explains:
· Mill utilization rates have risen by 2 percent to approximately 76 percent, which means the mills must source an extra 110,000 metric tons of scrap.
· Export cargoes have again kicked in representing approximately a 200,000-ton demand from NAFTA (for September delivery).
· Nucor’s DRI facility in Louisiana is down for an outage, causing greater demand for premium scrap.
· Turkey is an aggressive scrap volume buyer as Chinese billets and rebar are over $550 per metric ton.
· Fall scrap buildups begin in August to build winter inventories gradually.
· China steel demand has escalated as government infrastructure projects have created a higher demand. Chinese steelmakers are on pace to produce 60 million tons more than 2016.
Harris predicts obsolete scrap could rise by $20 to $30 per ton, and prime scrap by $40 to $60 per ton in the near term. Look for him to expand on his forecast during the panel discussion beginning at 10:35 a.m. on Tuesday, Aug. 29, at the Georgia International Convention Center.
Tim Triplett
Read more from Tim TriplettLatest in Steel Products
Market says cutting interest rates will spur stalled domestic plate demand
Market sources say demand for domestic plate refuses to budge despite stagnating prices.
U.S. Steel to halt slab conversion at Granite City Works
U.S. Steel said it plans to reduce slab consumption at its Granite City Works near St. Louis, a company spokesperson said on Monday. The Pittsburgh-based steelmaker will shift the production and processing of steel slabs to its Mon Valley Works near Pittsburgh and its Gary Works near Chicago. Citing a United Steelworkers (USW) union memo, […]
SMU Week in Review: September 1-5
Here are highlights of what’s happened this past week and a few upcoming things to keep an eye on.
HR Futures: Market finds footing on supply-side mechanics
As Labor Day marks the transition into fall, the steel market enters September with a similar sense of change. Supply-side fundamentals are beginning to show signs of restraint: imports are limited, outages loom, and production is capped, setting the stage for a market that feels steady on the surface but still unsettled underneath.
Beige Book: US markets remain cautious amidst volatile pricing environment
Sluggish economic activity across the US was largely attributed to uncertainty caused by tariff policies and growing cost pressures, according to the US Federal Reserve’s (The Fed) latest Beige Book report. The Fed’s latest economic report, posted on Sept. 3, consists of economic findings from the six weeks preceding Aug. 25 throughout 12 districts. Economic […]