Current Scrap Metal Prices

Base metals, steel outlook becoming negative as growth and demand weaken – excerpts from article are as follows:

Standard & Poor’s says the credit outlook in the European mining and steel sectors is becoming negative, “pressured by vulnerable prices, higher costs, and tightening liquidity.”

“Demand in the developed markets of Europe and the U.S. is weakening, and concerns are growing that economic growth in emerging markets is also slowing,” S&P Primary Credit Analyst Alex Herbert and Secondary Credit Analysts Elena Anankina and Trevor Pritchard said.

“Market prices for many base and precious metals are declining-some sharply, thought prices for bulk commodities remain high. Input costs have risen considerably, especially in steel, and, after a significant rise in steel prices in response, prices are now turning down,” they said, noting that “large scale spending on capital expenditures and acquisitions continues to consumer cash flows.

S&P also predicted that steel prices will weaken in 2009, although these have risen significantly to record levels during the last few months. “Higher steel prices reflect largely successful efforts in passing higher input costs for iron ore, coking coal, scrap, energy, and labor on to customers, albeit with time lags, and against some resistance.”

Nevertheless, the analysts warned, “Steel prices are beginning to decline, so we see some vulnerability here for 2009. However, better market discipline on the supply side will be a mitigating factor.” Steel producers with their own raw materials supply of iron ore, coking coal and scrap “will be better placed to cope with rising input costs and fluctuating steel prices,” S&P advised.

Source www.worldscrap.com