Schnitzer Steel Predicts Increase in Scrap Prices

In Schnitzer Steel's current press release they predict average ferrous and nonferrous net sales prices to increase from the fourth quarter of 2009 though scrap metal prices for ferrous and nonferrous declined in recent weeks. In addition, their margins are expected to be similar to their fourth quarter margins.

Continue to watch the export market as developing countries are experiencing growth faster compared to the domestic market.  The export market demand for scrap metal with assist in driving the increase of ferrous and nonferrous scrap metal prices moving forward.

Let us know what you are experiencing.

Lower Prices probably short lived

Well by now you have been notified by your buyer that the prices are moving down???


Hold on now...it may be time to sit on that material for a few weeks.

We have been hearing from customers in the Midwest that prices that were lowered by $30. are already moving back up, some as much as $20. … no material flow.

Several customers in PA reported the same phenomenon.

We believe those who wait will reap the higher prices.

We believe that the majority of the Pacific Rim buyers including China will be back in the buying market next month and the domestic buyers are hedging their bets and trying to buy cheap.

Stay tuned as we poll our customers on pricing and material availability.

Todays News

Today’s update comes from the West Coast where scrap activity is heating up. Scrap yards are hearing that the price of their #1 and #2 cut grades will be up $10 next month. Domestic mills are continuing to go online placing pressure on scrap yards to deliver on existing orders.

Some of the scrap yards in the Central States have not received the prices they where promised at the beginning of the month, only receiving $210 instead of the $250.

Copper prices have dropped causing customers of ours to stockpile their copper till next month.

We continue to hear that inventories of scrap yards and mills are tight; no one is building up an inventory.

What is transpiring in your area in regards to scrap materials? Let us know.

Export market gets SOFT.

Today we’ve heard from several customers that their October export contracts have weakened. Going into Korea the 80/20 mix of HMS #1 & #2 has fallen from 285/mt to 240/mt.
Baled tin bundles which were bring 232/mt have slid to 205/mt.
Looks like the domestic market for October is going mostly sideways to up 10.
Our customers in the Northwest corner are reporting upward 10 movement on car bodies, tin and HM products.
Reports from the South and South West are reporting preliminary numbers indicating sideways for October.
Our customers in the East including Ohio and Pennsylvania have already been told down 5 and some have been docked 5 already.
Based on the mill start-ups and the mill buying we think this will be changing for the better through the month as many sellers hold.
In any event it looks like selling domestically this month will be the most profitable venue as the export market adjust to the States higher scrap prices.

DADE buyer for OCC and News 8 & News 9

DADE has been contacted by several buyers of OCCA (Export Grade) cardboard as well as ONP News 8 and ONP News9. They are looking for a large monthly purchase of the above materials. They have ask us to help them broker this material to them on a continuous monthly basis.
Anyone with significant quantities of these materials that is interested in exporting them and building another sales avenue, contact David Fournier at DADE  800-823-9688