UNITED STATES March 17 2014 10:06 AM
NEW YORK (Scrap Register): Many participants in the US Midwest are expecting further weakness in the domestic ferrous scrap market, with demand predicted to remain relatively subdued going forward into March, said The Steel Index (TSI) in a research note.
According to TSI, with many mills running at reduced utilization rates and the threat of inclement weather abating by the day, sentiment amongst recyclers is certainly low, leaving the mills able to dictate pricing to a large degree.
US domestic shredded scrap index monthly average dropped by 6% month-on-month to $26 a long ton during February, reflecting a glut of material on the US East Coast moving inland.
Looking ahead to March, much of the focus of the international scrap scene will be on the actions of Turkish buyers, said TSI.
With the glut of material on the US East Coast now largely swallowed up by the market, it will be interesting to see if an acceptable equilibrium has been found for both buyers and sellers for the time being.