Economy
October 6, 2018
Secondary Steel Prices Moderate in a Tight Market
Written by Tim Triplett
Prices for secondary steel have followed the downtrend with prime, but to a lesser degree, report distributors of nonprime material. Finding enough material to meet customers’ needs remains a challenge, they say.
Secondary steel is nonprime or excess material that did not meet the specifications for its original intended use, but is acceptable to other buyers for other applications. The Trump administration tariffs have reduced imports and tightened prime steel supplies, which has had the same effect on secondary. More customers are willing to accept coils with minor defects for fear they will be unable to find material at all in a short market.
