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Steel Plate scrap is Shifting to a Higher Plane

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by - 5/9/2016 5950 Views

Climate Good For Steel Scrap

The steel plate scrap market is shifting to a higher plane, market sources said, thanks to mill increases, expected gains in scrap prices and a landmark trade case that would squeeze off shore supplies.

“Everything is on its way up. I haven’t seen things like this for a while,” was what one East Coast trader told. “Steel Plate scrap is definitely getting more valuable. Even secondary is getting richer,” This statement came on the heels of the above statement by a Midwest service center source, estimating that secondary plate prices have increased 40 percent to as much as $21 per cwt ($420 per ton) from a low of $15 per hundredweight ($300 per ton) late last year.

Steel Plate scrap prices have now gained 28.3 percent from a mid-December low of $23 per cwt and are 0.9 percent above $29.25 per cwt ($585 per ton) a year ago. The prices are likely to move higher even without significantly improved demand, given extremely lean service center inventories.

“We’re starting to see things pick up a little bit from a pricing standpoint. We’re also seeing the market struggling a bit to catch up with replacement costs,” a southern service center source said.

One producer said. “While all this hue & cry about prices going up is good, demand is not there. Sure, everyone is getting inquiries. But we are not seeing a run on material.”

Such comments echo persistent concerns that a supply-driven increase could prove fragile, market sources said. Those concerns are perhaps more pronounced on the plate front than in sheet, which continues to benefit from strong automotive demand and reduced domestic and offshore supplies.

“Flat-rolled (price increases) have some logic because mills have been taken offline. But that’s not the case on Steel Plate scrap. And the demand is not there,” a second Midwest service center source said. Still, he acknowledged that the price his company was paying for plate has gone up significantly following a recent round of Steel Plate scrap price hikes.

Category : Metal

Tags : Ferrous Scrap, Ferrous Scrap Market Trend, Steel Plate Scrap, Secondary Plate Scrap

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About Georgy Abraham

As the bright morning of 28th May dawned in the year 1972, in the fulfillment of time according to the plan & will of Almighty Godbrought me forth into this world and I was brought up & educated in Orissa. My parents provided me with the best of education in an English medium school with high standa .... more info


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