Scrap Metal Prices and Scrap Metal Auctions » Steel Scrap

Steel Scrap Prices Continue to Fall

admin — Sun, 25 Oct 2009 12:27:36 +0000

As reported by Commodity Online: Steel scrap prices are heading south across the globe now. Even though global scrap market resisted the decline for long but in mid-October the prices started falling.

In Far East the price for the US scrap decreased to $285 per tonne from $300 per tonne. Japanese H2 scrap is purchased by Taiwanese and Korean companies at $290 per tonne CFR and less.

In Japan domestic quotations for scrap fell by 30% in recent two months due to the drop of Chinese import almost to zero level.

Tokyo Steel Manufacturing Company again decreased purchasing prices for scrap since October 16 to JPY 21500 to JPY 23500 with delivery.

In the US the prices for main kinds of scrap decreased by $10 per tonne to $20 per tonne as compared with early October.

The main cause of the prices drop is the absence of serious purchases in Turkey and China, the countries which were the biggest scrap importers in the first three quarters of 2009. By now China almost stopped scrap importing due to domestic steel products prices decrease. Turkish companies which had to reduce steel melting volumes, buy small amounts of scrap. American and European companies have stopped making scrap stockpiles. They are to return to the market in January.

The fall in scrap market happened by the same reasons as steel products prices decrees. The main reason is steel overproduction caused by too optimistic expectations of the crisis finish by the end of current year and according steel prices increase. Metallurgical companies started buying raw materials in July to August, preparing for market recovery. This caused scrap shortage and scrap prices increase to about USD 320 per tonne CFR in Turkey and to mere than USD 350 per ton CFR Eastern Asia. Now steel makers use these excessive scrap stockpiles and they have all opportunities for operating for a fall.

Scrap prices decrease in Eastern Asia countries can return China into the market. Domestic prices for scrap similar to HMS No 1 reach USD 350 per tonne and more with delivery in Eastern provinces. At the decrease of import prices to USD 290 per tonne CFR and less such transactions become profitable for Chinese traders despite of the crisis.

Thus, there is big possibility that scrap prices decrease in Mediterranean will stop at the point of $230 per tonne to $250 per tonne CFR Turkey; in Far East region at $280 per tonne to $290 per tonne CFR China.

N. AMERICAN AVG CARBON STEEL PRICES – LATEST FORECASTS FROM MEPS

admin — Tue, 05 May 2009 18:06:44 +0000

NORTH AMERICAN AVERAGE CARBON STEEL PRICES – LATEST FORECASTS FROM MEPS

Flat products transaction values are likely to continue decreasing over the next few months, even though the steelmakers are operating close to, or under, the cost of production. There are rumours suggesting that further discounting is being undertaken. This could add further downward pressure in the short term. However, we do believe that we are nearing the bottom of the current price cycle. Import volumes are dropping and local mills are expected to maintain production cuts and extend summer shut downs. Blast furnaces will not be brought back on stream until the steelmakers are confident of their ability to sustain higher output levels. Inventory reduction is predicted to be almost completed in the third quarter. This should bring stability in steel selling figures around the middle of 2009.

Transaction values are forecast to rise during the final few months of 2009. Government stimulus packages should begin to lift steel demand towards the end of the year. Reduced production levels, coupled with low inventories in the market, may create a supply shortage as order volumes increase. This will, almost certainly, lead to extended delivery lead times and rising prices. Seasonal factors may temper these advances initially. Larger gains are then predicted for early 2010.

Prices for all long products are expected to decline further in the short term. Declining raw material costs are likely to put additional negative pressure on selling figures as end user demand remains weak. However, market players are hoping for a modest seasonal revival as the spring proceeds, which, if this occurs, could limit some of the reductions in steel values.

Steel prices are forecast to rise after the summer period. Credit restrictions are likely to ease during the second half of 2009. This will give many customers improved purchasing ability and help with modest inventory rebuilding. The infrastructure stimulus packages should also boost steel demand but its full effect will not be felt until at least the end 2009. Consequently, we do not envisage any significant gains in selling figures until early 2010.

Source: MEPS

Comments are welcome on this story, what are your predictions?

What is the current price or steel iron HMS scrap metal?

admin — Sun, 19 Apr 2009 20:00:43 +0000

Many subscribers and readers ask What is the current scrap metal recycling price for HMS, steel and iron? There is no direct answer to this question as there are many grades of steel, iron and HMS scrap. For example, there is plate and structural (P&S), #1 unprepared steel, #1 prepared steel, HMS 1, HMS 2 etc. Pricing for scrap metal is also dependent on your location in the world.

This site provides current and historical scrap metal pricing for steel, iron and HMS at SCRAP STEEL HMS AND IRON PRICES

Stimulus Packages May Not Help Steel Sector

admin — Mon, 22 Dec 2008 23:10:02 +0000

How far will the stimulus packages announced by various countries impact the consumption of steel as steel prices recovered prices recovered in Asia which was attributed to seasonal recovery.

The outlook still remains uncertain on the demand front, given the concerns over the implementation of the packages and persistent deterioration in the consumer confidence, coupled with the worsening job market, Prabhudas Leeladhar said in a steel sector update.

Hot Rolled Coil (HRC) prices plummeted sharply in the European and American markets due to continuing decline in demand. Leading steel producers expect the prices would once again slide given the increased liquidity requirement of the mills to redeem the loans and made incremental spring festival payrolls before the year end. The fall would be further substantiated by the resumption of the production at various mills coupled with no substantial improvement in demand.

Production cuts would undoubtedly bring normalcy in the steel prices and inventory levels. However, much would depend on the future demand outlook because various data points suggest sharp contraction in demand, Prabhudas Leeladhar pointed out in its report.

Last week the Benchmark HRC prices in China rebounded ~20% to US$515 per tonne from the lows of US$429 witnessed in the week ended November 18, 2008 (33month low) based on the weekly SBB price data for the week ended December 16,
2008.

While the long product prices (Bar) have stabilized in the range of US$500-514, they are up ~11% from the lows of US$462 made on October 21, 2008. The rise in the Chinese prices is primarily led by increased seasonal activity ahead of spring festival and reduced supply coupled with production cuts. Chinese producers expect the steel as well as raw
material prices to fall once again on the premise that mills and iron ore suppliers may dilute their inventory in the market for cash to redeem their loan and made incremental spring festival payrolls before the year end.

On the other hand Flat product prices in US and Europe haven’t bottomed out. Prices in
Flat product prices in US are quoting at ~12-month low of US$605 while prices in northern Europe markets are ruling at 10-month low of US$750.

Prabhudas Leeladhar has recommended maintaining Underweight on steel sector in view of demand fall in auto, housing sectors apart from infrastructure and liquidity crunch.

Indian ore (63.5% Fe) price, CNF the Chinese port, recovered sharply ~10% during the week ended 16th December 2008 to seven-week high of US$81 per tonne. This was in the wake of Chinese producers switching gradually from contracts to spot market, since the differential between both the routes have widened by ~30-35% (on CIF) in the favour of spot prices. But traders believe that the rebound is more to do with the tactics applied by the Chinese producers to bring the leading miners on their desirable terms, with
a reduction of 40% in the contract prices from the previous contract price of
US$86.

The brokerage has given a Reduce rating for JSW Steel with a target price of Rs 217, Jindal Steel with a target price of 853 and Sell for Monnet Ispat with a target of Rs 114.

Courtesy: www.commodityonline.com

ASIAN AVERAGE CARBON STEEL PRICES – LATEST FORECASTS FROM MEPS

admin — Fri, 07 Nov 2008 13:56:27 +0000

Financial problems across the region are expected to negatively affect demand over the coming months. This, coupled with weak export markets, will push transaction values for all flat products lower in the short term. De-stocking by distributors is forecast to continue during the final quarter. Consequently, mill sales volumes are likely to drop further. This may prompt local producers to further reduce selling offers in a bid to fill their depleted order books. The auto and construction industries are reported to be particularly weak, impacting heavily on cold rolled and coated figures.

Productions cuts by some mills in the region could help to stabilise the market by the end of 2008. A modest price revival is anticipated by the second quarter of 2009 as inventory rebuilding commences. However, low growth rates, predicted across many sectors next year, will limit advances in selling figures and could lead to reductions in the final few months of 2009.

Significant decreases in scrap and billet costs are predicted to lead to further declines in steel transaction values across all the long categories. Inventory levels are rising due to weakening demand. With fewer new projects anticipated over the coming months, consumption could continue to fall. This will prompt many customers to restrict purchases in the short term. Domestic mills are already cutting production in an effort to stem the downward price movement. However, this is unlikely to be enough to stop selling figures from drifting lower in the fourth quarter of 2008.

The current price cycle is forecast to reach the bottom early in 2009. Stability in scrap values is expected to return by this point, with possible rises in the first quarter. Distributors are likely to reassess their inventory levels, with a pick-up in buying anticipated after the Chinese New Year. Consequently, long products selling figures should move upwards towards the end of the first trimester. However, due to an uncertain global economy, a relatively modest upturn is anticipated.

Source: http://www.meps.co.uk/asia-price-forecast-10-08.htm

US Scrap H1 Steel and Iron Price Continue Downward Spiral

admin — Thu, 23 Oct 2008 16:28:40 +0000

US H1 scrap prices down

On October 20, the average price of H1 scrap in Pittsburgh, Chicago, and Philadelphia was US$182.50/long ton, down by US$6.67/long ton from last week. The price of No.2 bundle scrap was US$139.50/long ton, as the same as last week.

Among them, the average price of H1 scrap in Pittsburgh was US$194.50/long ton, and in Chicago was US$169.50/long ton, both as the same as last week; in Philadelphia was 183.50/long ton, decreased by US$20/long ton than the previous week.

In east coast, the average price of H1 scrap in New York, Boston, and Houston was US$162.83/long ton, unchanged from the last week.

Source www.yieh.com reported by Rita Chang

US Scrap Steel Prices Down in October

admin — Sat, 18 Oct 2008 19:04:52 +0000

US H1 scrap prices drop
On October 13, the average price of H1 scrap in Pittsburgh, Chicago, and Philadelphia was US$189.17/long ton, down by US$61.66/long ton from last week. The price of No.2 bundle scrap was at US$139.50/long ton, down by US$105/long ton from last week.

Among them, the average price of H1 scrap in Pittsburgh was US$194.50/long ton, decreased by US$105/long ton; in Chicago was US$169.50/long ton, down by US$40/long ton from last week; in Philadelphia was 203.50/long ton, decreased by US$40/long ton than the previous week.

In east coast, the average price of H1 scrap in New York, Boston, and Huston was US$162.83/long ton, decreased by US$30/long ton than the last week

source: www.yieh.com

Steel Drops 30 to 50 Percent in Price since Late July

admin — Wed, 15 Oct 2008 14:19:11 +0000

A global trend toward less demand and lower pricing for steel has become pronounced since late July, according to a summary prepared by the London Metal Exchange (LME). For complete article go to http://www.recyclingtoday.com/News/news.asp?Id=14002

U.S. Scrap Steel HMS Prices Plunge in October

admin — Mon, 13 Oct 2008 11:40:57 +0000

American scrap has been suffering from a serious price plunge since September because of lower demand in both domestic and global markets; the price will drop again during October but buyers are still waiting to see what the future trends will be.

At present, the angle scrap price is US$320~330/ton in the eastern gulf, the fragment scarp price is US$245~255/ton, and the H1 scrap price is US$210~220/ton. Due to the uncertain financial situation, nowadays most steel enterprises have ceased their purchases.

America mainly sells scarp to Turkey but the export volume has been successively reduced because Turkey has just finished Ramadan (a month of fasting) and due to weak domestic market demand; however, American scrap suppliers are still optimistic, they would be glad to offer CFR US$300/ton (Turkish port), which is US$110/ton lower than last month, if buyers would like to purchase.

Source www.yieh.com

American H1 Steel Scrap Prices Drop in October

admin — Tue, 07 Oct 2008 11:27:42 +0000

American H1 scrap prices decrease
After rising by US$30~50/ton in September, American domestic H1 scrap price dropped again in the first week of October due to very weak demand in the domestic market.

The current price is US$220/ton. Meanwhile, America’s main scrap exporter, Sims Group has cut the purchase price of scrap by US$90/ton. Due to the plunging scrap price in the West Coast Area, it will cause the scrap export rates to drop for shipments to Asia from both America and Japan.

Simultaneously, the pig iron market remains sluggish as well. Brazil’s price is expected to dip under US$470~480/ton for shipment to Europe and US$500/ton to Taiwan.

Source www.yieh.com