Iron Mike’s Search Of Steel Prices and Volitility Using Scrap As Litmus
The Below Graph Was provided By Haskell
Here is an excellent article from “The Iron Press” forcasting the month of June scrap steel pricing. This is the big money question. Is this the bottom ?
“The summer months are no help in trying to find a historical precedent for what is to come. June, July and August are about as down-the-middle as you are going to get.
Let’s look at more recent history. A further downtrend in pricing on cut grades in July would bring us four consecutive down markets. That has not happened since April-July 2019. But every grade will be entering July in a different boat.
STEEL PRICING We can look at steel pricing and there is no good news there, but it is not the type of bad news you would expect. Steel pricing in the US is falling, yes. But the issue may be that pricing is not falling fast enough. US pricing remains at nearly a $300 premium to Europe and over a $500 premium to China. It is tough for a steel mill to persuade a steel buyer to make a big purchase of domestic material at these spreads. US pricing is closing the gap with China at an average of $40 per week. At that rate the US will be a sustainable $200 premium in eight weeks… “
Vol. LXXII 2022-06-03 AIM Recycling Insights On The Metal Market
