UNITED STATES November 25 2015 5:20 PM
NEW YORK (Scrap Register): The monthly average prices of US shredded scrap for October fell heavily for the fourth consecutive month as the market remained severely oversupplied and suffering from a lack of both domestic and export demand for scrap.
The situation has not changed since July, and any sudden uptick in mill utilization rates looks exceedingly unlikely in the short-term.
According to TSI, falling international scrap prices also weighed on US domestic prices. Turkish import prices were depressed further throughout most of October, and US yards could not rely on exports to take the heat out of the oversupply situation.
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The monthly US shredded scrap 10-day average index published on October 11 stood at US$178/long ton (delivered Midwest mill). This index reflects the volume weighted average price of transactions completed during the first ten days of the month. NASDAQ OMX listed a new US shredded scrap futures contract, settled using this 10day average index, on September 7.
The average of TSI’s weekly US Midwest shredded index for the full month decreased by $33.75 a long ton in October (-15.7% month-on-month) to $181.25 a long ton (delivered Midwest mill).
(This article is compiled by Vibin Antony on behalf of Scrap Register. Send in your suggestions and comments to firstname.lastname@example.org)