Declining scrap prices are expected to drag down US longs prices with them, Steel Business Briefing understands.
A source at one domestic beams producer predicted yesterday that prices for delivery of that product next month would fall along with the decline in scrap by $20-40/short ton.
Source: Steel Business Briefing
August US scrap surcharge benchmark down $45/l.ton
A key scrap price that determines surcharges for August deliveries of many steel products in the US market fell by $45 – from $350 to $305 per long ton, Steel Business Briefing learns.
As SBB has previously reported, scrap market players had been expecting a drop in scrap prices due to especially weak export demand.
Source: Business Briefing
The U.S gov’t last month imposed large tariffs of 42.61% to 289% charging the Chinese were dumping wire decks in the US.market.
Response : Government puts tariffs on imported wire but at who’s expense?
Government intervention into the free markets has a dismal & destructive track record.
Nobody ever wins a trade war. Call it what you will, price controls, tariffs, import taxes, price freezes etc.
Always instituted for ” noble reasons” yet, in reality, they’re just another means for government to justify picking winners and losers in the marketplace.
Tariffs will result in retaliation from the other side. This is nothing new. This is how trade wars start.
China will now retaliate with some measure of their own and the industries that feel the brunt of that retaliation then must suffer for no fault of their own.
In the end nobody wins and business suffers. What do you think?
March’s US scrap market could be “coming in like a lion” with strong prices, one Mid-Atlantic states scrap dealer tells Steel Business Briefing.
“By all accounts the mills have strong order books, and are projecting good business. On the other side, incoming scrap has been severely impacted by the weather, as has transportation, especially rail service. The result will be an up market for scrap-probably a significant ‘up,’” he believes.
Sources: US scrap prices will continue rising
The US scrap market for January and February is still taking shape – but market players tell Steel Business Briefing they expect prices to continue their upward march.
“I think the demand is going to be exceeding the supply, so I think prices will remain strong,” said one West Coast market player who said shredded scrap for export to Asia was selling at around $300/long ton, fob.