Scrap Metal Prices

US transaction prices continue to shoot up as the substantial hikes, planned by the mills for June deliveries, are implemented. Further sharp increases have been announced by a number of producers for third quarter business. This is despite a generally weak economic environment. Companies are only purchasing for their immediate requirements, with service centres keeping inventories at minimum levels. The pricing situation is being driven by escalating raw material costs and vastly reduced supply due to a considerable drop in the availability of foreign steel.

In Canada, the domestic mills are busy. There is a lack of imported material, although some offers are now appearing, albeit at the same price as local ones or slightly higher. The auto and manufacturing markets are sluggish. Transaction values continue to rise and July figures are expected to advance by another $C80/110 per tonne as scrap costs keep on growing. Service centre inventories are still declining because of a reluctance to restock at such high prices.

For remainder of article go to www.meps.co.uk/viewpoint5-08.htm

Source www.meps.co.uk