Ferrous Scrap Negotiations Point Toward Higher Steel Prices

All eyes this week will be on the scrap dealers and their steel mill customers as they haggle over where ferrous scrap prices will trade for the month of November.  The opinion of many in the steel industry is that as scrap prices increase, it will both support the flat rolled steel price announcements already made and pressure the domestic steel mills and their efforts to continue to raise flat rolled steel prices in the coming weeks.

SMU received the following text message this morning (Sunday) from a steel buyer at a large steel service center, “Big story this week will be scrap, it’s very strong from reports I am getting.”