Final Thoughts

Steel Market Update (SMU) ferrous scrap sources are advising us that the scrap market pricing have not settled yet. It seems that every periodical wants to fan the flames of scrap price collapsing (and we do our share as well I suppose) before the final numbers are locked in. Keep that in mind when evaluating where you think steel prices will go from here.

Something to think about: we know that there is a correlation between shredded scrap and WTI (oil) pricing. We pointed out a disconnect between WTI and shredded scrap pricing in our final thoughts about a week ago. It appears that the disconnect may be coming back into line as oil prices have bounced off $43 per barrel and were close to $52 per barrel today. As we have mentioned in our scrap article, the expectation is shredded scrap will drop by a minimum of $50 and could go down by $70 or more.