November scrap prices set to rebound
(From Steel Market Intelligence: www.michelleapplebaum.com.)
After declining nearly 20% over the past two months, we believe that November scrap buys will be done at higher levels in the coming days, with increases as large as $30-40/ton.
The pick-up will be driven by the following factors:
1. Logistic issues related to Hurricane Sandy will exacerbate declining scrap flows initially driven by the $75-83/ton drop in scrap prices over the past two months.
2. #14 blast furnace at Gary Works is back up.
3. There is seasonality in the scrap market as buyers typically purchase scrap ahead of inclement winter weather.
4. Global scrap demand has increased – Turkish scrap import prices have risen over $20/ton in the past month. Schnitzer recently said that China is back in the scrap market as well.
5. Improved sheet order books and the pick-up in sheet prices will provide a boost to scrap market sentiment.
6. Iron ore prices jumped 14.5% in October after plummeting in August and September.
For the complete report on November 2012 scrap, and information about Steel Market Intelligence, email: [email protected]