Final Thoughts
June 1, 2016
Final Thoughts
Written by John Packard
My understanding is most of the mills canceled any scrap not yet delivered by the end of May. They do this when they believe scrap negotiations for June will result in better prices for them. It is still very early in the negotiation process, especially considering that Monday was a holiday. One scrap expert told me this afternoon, “Originally thought -10 on primes, -30 on shred, -20 on cuts. I don’t think it’s that bearish right now though. Primes may end up sideways. With export, cuts probably stay 20. Shred may come back to 20 as well. Shred will certainly hit a floor with drops. Flows aren’t that great.”
So, the door is still open and we will need to watch and wait. If shredded scrap drops and then settles in at that number (or higher) then the negative influence on prices may be muted.
