SteelOrbis has learned that some scrap dealers have been reluctant to accept downward pricing during this month’s buy cycle, adding that while the market hasn’t settled yet, it should be fully settled by Friday.
“I heard couple rumblings about resistance, but everyone appears to selling,” an Ohio Valley-based source said. “There’s plenty of shred around in this region right now, but busheling tough item to get.”
On the other hand, other sellers have said they’re “relieved” at down $20/gt prices because “we planned for that in advance. We’re just happy mills’ offers didn’t come in at down $30/gt.”
Sources polled appear to be split in their sentiment of the state of the market; whereas some have said they’re fine with down $20/gt, as yards are “still making money,” others maintain that there’s no reason that the mills should be trying to take prices down based on reports of record-breaking profits and still-climbing finished steel prices.
"In this area, it seems like mills are getting all the scrap they need which is why prices are falling," a Chicago-based source said. "Despite the resistance, I think we'll see the market settle at sideways on primes and at down $20/gt on everything else."