May 2012 | Steel Raw Materials
High steel operating rates in March signal an increase in US domestic scrap demand: Scrap Highlights
A scenario of firmer US scrap prices is expected in May as the supply-demand balance tightens.
US domestic scrap prices rolled over this week with prices for May expected to be settled in the next week. The majority of market participants suggested that prices will roll over in May, except for prime grades, as scrap demand and material in the market are relatively balanced. While the US scrap market is relatively quiet, US crude steel production boasted a high capacity utilisation rate last month. In March 2012, the crude steel production rate in the USA reached 79.6%, with the expectation that the rate will see further increases in May. This implies that scrap demand will be supported as utilisation rates are sustained. US HMS No.1 and No.2 domestic average prices are unchanged at $405/l. ton and $378/l. ton delivered mill terms, respectively. US East Coast export market prices fell last week, however...
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