A month ago one of our dealer sources echoed the views of many in the ferrous scrap business, he expected nothing worse than a sideways (no change) market for July scrap prices. He pointed to stronger demand at the steel mills and continued weak collection of obsolete scrap grades. We will hear more from him […] The post Scrap Prices Weaken Much More than Market Expected appeared first on Steel Market Update.
Our ferrous scrap sources told us that Detroit scrap prices were settled earlier today where all of the prices were reported as being sideways (no change from June pricing) with the exception of shredded scrap which was reported as being down $10 to three mills, sideways to another and one mill being undecided. We will […] The post Final Thoughts appeared first on Steel Market Update.
June ended the same way it started with our SMU Price Momentum Indicator pointing toward higher flat rolled steel prices. This is now the second month in a row where our Momentum Indicator has been pointing up. Our Future Steel Buyers Sentiment Index averaged +61.5 for the month of June. However, the last report we […] The post June at a Glance appeared first on Steel Market Update.
A little more than a week ago, Steel Market Update spoke at a Bank of America Merrill Lynch dinner in Chicago. In the audience were a couple of scrap companies who told us the mills in the Chicago area (ArcelorMittal in particular) have come back into the market to buy scrap after a lengthy absence […] The post Scrap Outlook for July: Sideways to Maybe Up $10 appeared first on Steel Market Update.
Metalico, Inc., a U.S. scrap metal processor, has been sold to Chinese investment firm Total Merchant Limited for approximately $105 million. In an announcement on Tuesday, Metalico said it will become a wholly owned subsidiary of Total Merchant and expects to close the transaction by August 31, 2015, subject to shareholder approval and customary closing […] The post Metalico Sold to Chinese Firm Total Merchant Ltd. appeared first on Steel Market Update.
Ferrous scrap prices rose in June as obsolete flows continue to be weaker than normal and the domestic mills have come back into the market. The strength of the market has come as a surprise to dealers and mills alike. Number 1 Heavy Melt (HMS) ranged from $230 to $265 per gross ton with the […] The post Obsolete Scrap Flows Down 30%, June Prices Rise $20-$30 appeared first on Steel Market Update.
Steel Market Update has been communicating with our scrap sources during the day today (Thursday, June 4th) and we have learned that not all of the transactions/negotiations have been completed. Even so, a pattern has emerged which is showing ferrous scrap prices as moving higher by $20-$30 per gross ton compared to this time last […] The post June Still Settling but Scrap Looking to be Up $20-$30 appeared first on Steel Market Update.
An explanation of the Key Indicators concept is given at the end of this piece for those readers who are unfamiliar with it. The total number of indicators considered in this analysis is currently 36. Please refer to Table 1 for the view of the present situation and the quantitative measure of trends. Readers should […] The post Key Market Indicators- May 31 2015 appeared first on Steel Market Update.
Based on channel checks with our scrap sources, we are hearing that many of the steel mills have been actively buying as much scrap as possible during the month of May. The extra tonnage being added to the early May tons are being purchased at higher prices. Prices are up as much as $10 to […] The post Ferrous Scrap Prices Set to Rise $10-$30 in June appeared first on Steel Market Update.
Steel Market Update closely follows the hot rolled futures market as a leading indicator of where “the money” is predicting HR steel prices to go in the future. We have added a new writer to our futures articles and he is very experienced in the trading of HRC futures, options and SWAPS. However, he has […] The post Hot Rolled Futures: Prices Look Vulnerable appeared first on Steel Market Update.