What goes around comes around, as they say. In the case of the ferrous scrap market, what goes around and comes around again and again are residuals such as copper that complicate the steelmaking process and threaten to erode some of the competitive cost advantage now held by minimills. Minimill steelmaking has transformed the steel […] The post Residuals Eroding Minimills’ Cost Advantage appeared first on Steel Market Update.
Hurricanes Harvey and Irma were devastating for the many Americans still struggling to recover from the damage. But for the scrap metal market, contrary to common belief, the storms will be a mere blip. “Everyone’s immediate reaction to Harvey is, ‘Oh, there will be so much scrap coming out of Houston, prices will drop.’ The […] The post Don’t Expect a Surge of Scrap from the Storms appeared first on Steel Market Update.
Pictures of countless cars and trucks submerged in Houston floodwaters and homes shattered by high winds in the Southeast have the worth of a thousand words in describing the destruction from Hurricanes Harvey and Irma. What they say about post-storm conditions in the ferrous scrap market is less clear. For those who assume thousands of […] The post Storms Cloud the Visibility for Scrap appeared first on Steel Market Update.
Ferrous scrap prices were expected to rise by $20 to $30 per gross ton once the September negotiations began. By Thursday afternoon (today), we were learning that steel mills are suddenly able to buy at sideways numbers. We understand North Star BlueScope was able to buy September at the same prices as August. Other sources […] The post Steel Mills September Scrap Buy Surprises Dealers appeared first on Steel Market Update.
Steel Dynamics’ struggling recycling segment widened the company’s net loss to $253 million in fourth quarter 2015. It was determined that the book value of the metals recycling segment recorded $435 million in non-cash goodwill and other related asset impairment charge. Excluding the metals recycling charges, adjusted net income was $22 million on net sales […] The post SDI Reports Continued Growth in Construction, HR Weakest Product appeared first on Steel Market Update.
There is no joy in Mudville in the middle of March, the scrap market is dead and no mills are looking to add to their inventories. For that matter the dealers have very little to offer as the weather has yet to clear up north and the big move lower in scrap prices in February […] The post Ferrous Scrap Prices Poised to Move Sideways as we Get into April Negotiations? appeared first on Steel Market Update.
As Steel Market Update has discussed in previous articles on the subject of scrap pricing, the original projections by buyers of scrap were for prices to drop $20 per gross ton on all products for the month of March. The projected March reduction would have been on the heels of an $80 to $110 per […] The post Ferrous Scrap Update: April Bounce Ahead (Dead Cat or Otherwise)? appeared first on Steel Market Update.
The recent resurgence of the steel industry in Japan has resulted in a scrap shortage in the Far East, despite lackluster finished steel sales. Japan’s resurgence is a partial result of Abenomics due to the weakening yen (currently at 101). Automobile sales, appliances and public infrastructure spending/reconstruction has resulted in very healthy steel demand in […] The post Tightening Scrap Market in Asia appeared first on Steel Market Update.