Scrap Prices Take Another Dip Lower but Dealers Think This is the Bottom...

Our scrap sources reported ferrous scrap prices as having the most strength in the east where export pricing has bounced off the bottom and momentum has apparently turned in that region. One of the east coast dealers told us that scrap flows are “atrocious” and if it wasn’t for the “terrible demand situation the market would be higher.” We were told a number of dealers in the east are sitting on scrap feeling that at worst December numbers will be the same as November.

Exporters are anticipating prices to Turkey will rise from here. Exporter buying prices have increased by $20 to $30 per ton as selling prices are “well off the bottom by a good twenty dollars.” We were told to “Watch the currency valuations for further insight” regarding export price strength. If the dollar weakens U.S. exporters will become more competitive with European scrap into Turkey.