Overseas
October 26, 2019
CRU: Global Sheet Prices Fall Again But Scrap May Soon Offer Support
Written by George Pearson
By CRU Prices Analyst George Pearson
The North American market has continued to see steel prices erode. We had previously anticipated that October scrap prices may be the lowest price seen over the next several years. We are now hearing that at least some market participants expect gains for November. The recent decline in scrap prices has allowed finished steel prices room to fall, which has hindered mill profitability. For sheet products, prices have fallen to a new low for the year losing $23-33 /st w/w. Lead times remain weak as the manufacturing economy remains under pressure while the market is entering its weakest period of the year. If scrap prices do indeed rise in November, we expect price increase announcements to come about as well for sheet and plate products.
