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Weak steel scrap demand - Scrap prices to tumble down conclusively

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by - 10/18/2012 7485 Views

Weak demand of Raw material too has played its role in this affair

When will the steel scrap prices take back its stable position? Is the common question among the scrap metal dealers? Weak demand of raw materials on one hand and low demand of steel scrap from the end users on the other hand has squeezed the market.

Turkey which is out of its traditional market has not opened up with its usual purchasing which is also a major impediment to the market. German ferrous scrap prices are likely to tumble as the result of weak demand from the Turkish buyers.weak

What actually has forced Turkey to cut short the scrap purchase?

Steel mills in Turkey are inept to fulfill the demand of rebars in their established markets due to large-scale contest from China. Thus, the Turkish mills are operating at just 65 percent of capacity whereas in reality 85 percent of production is required to workout profitably and things right in the market. China is increasingly supplying bulk steel as the country’s economy is firm.

So is the Non-ferrous market on a secured track?

It’s only ferrous market that is under price crisis. So is the condition in the non-ferrous market too. The Aluminium price in the London Metal Exchange experienced a persistent plunge and the free market aluminium scrap prices too moved down right away. Previous week the old sheet prices were between 70-72 cents per pound but now in response to LME price fall, old aluminium sheet prices fell between 69-71 cents per pound.

Nor the ferrous or the Non-ferrous market stipulation can be predicted with the present market trend that oscillates day to day.

Category : Metal

Tags : steel scrap, steel scrap price


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About Sangeetha Pillai

Stepping into this world on 24th August, I am the younger daughter of my parents.  I did my schooling at Sacred Heart Convent High School in Hubli (Karnataka). In a perplexity of deciding my higher studies I finally consoled my mind to go with Civil Engineering. Although my ac .... more info

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