Economy
August 2, 2019
Rising Steel Prices Give Secondary Market a Boost
Written by Tim Triplett
Rising prime steel prices are bringing some welcome relief to sellers of secondary as well, but higher prices do not necessarily translate into higher margins. Sources tell Steel Market Update that conditions in the nonprime market have improved, but remain challenging.
Nonprime or secondary steel includes coils that are rejected because they fail to meet the specifications for their original use but may be suitable for alternative applications. The price of nonprime tends to move up and down with prime steel. Domestic mills have raised prime flat rolled and plate prices significantly in the past six weeks.
