The U.S. is not (yet) a closed market and therefore we have to remain aware of what is going on around the rest of the world and especially in China (iron ore/billets/steel) and Turkey (scrap). Ferrous scrap prices are expected to drop significantly for October 2015 shipment. When we checked with a couple of our […] The post Pressure Will Continue on Ferrous Scrap Prices appeared first on Steel Market Update.
Steel Market Update (SMU) sources reported the domestic steel mills have canceled any remaining ferrous scrap tonnage that was not delivered during the month of September. This is normal when the mills believe that they will be able to negotiate lower prices for October delivery. As reported earlier this week, the expectation is for scrap […] The post Steel Mills Cancel September Scrap Orders in Anticipation of October Swoon appeared first on Steel Market Update.
Ferrous scrap prices continue to weaken due to sluggish demand at the domestic steel mills coupled with a lack of exports off the East Coast USA to Turkey. Turkish scrap prices have tumbled over the past thirty days, down $46 per ton or nearly 20 percent compared to last month. An 80/20 HMS mix is […] The post Scrap Markets Worst Seen Since 2009 appeared first on Steel Market Update.
The following article is written by Spencer Johnson of FC Stone LLC. With six years of experience, Spencer provides his customers strategic and tactical advice on protecting themselves against commodity price volatility in the steel markets. Spencer will rotate weekly futures articles with Andre Marshall of Crunch Risk, LLC. Spencer can be reached at spencer.johnson@intlfcstone.com. […] The post Hot Rolled Futures: Showing Limited Upside appeared first on Steel Market Update.
SMU is seeing ferrous scrap prices in the Chicago area trading down $10-$15 per gross ton with HMS at $200-$210 per gross ton, shredded at $230-$235 per gross ton and busheling at $240-$245 per gross ton. We received a note from one of our main ferrous scrap sources late last week that we thought would […] The post More Weakness in Ferrous Scrap Prices Expected appeared first on Steel Market Update.
Ferrous scrap markets are trading lower this week. The domestic mills canceled any outstanding tonnage that was due in August under the belief that they would be able to push scrap prices lower for September delivery. That is indeed what is happening according to SMU scrap sources. One of our larger scrap sources told us: […] The post Price Pressure Continues in Ferrous Scrap Markets appeared first on Steel Market Update.
Earlier this month the consensus of opinion among our ferrous scrap sources was that we had seen the bottom for scrap prices and, more than likely, prices would rise as we entered September negotiations. However, that was then, this is now. As we enter the negotiation period for September ferrous scrap buys by the domestic […] The post Scrap Prices for September Looking Sideways to Down $20 appeared first on Steel Market Update.
The following article on the hot rolled coil (HRC), busheling scrap (BUS), iron ore and financial futures markets was written by Andre Marshall, CEO of Crunch Risk LLC and our Managing Price Risk I & II instructor. Here is how Andre saw trading over the past week: Financial Markets: Oh boy we had a 48 […] The post Hot Rolled Futures: Oh Boy! appeared first on Steel Market Update.
Over the weekend we received further updates on the status of the ferrous scrap markets in the United States. We learned that US Steel Granite City had no scrap buys in July and we are hearing that they are passing on offers that are $30 to $45 per gross ton lower than their last buys […] The post Have Ferrous Scrap Prices “Bottomed”? appeared first on Steel Market Update.
Trading has not yet begun but ferrous scrap dealers are expecting another move lower in the scrap markets. Many are pointing to prices moving lower by $20 per gross ton or more depending on the markets. We are hearing that the South may be the weakest markets with projections of prices moving lower by $20 […] The post Scrap Prices Poised to Drop Again in August appeared first on Steel Market Update.