Steel industry sees prices pacing consumption
A slowdown in the economy is not hurting demand
for scrap steel.
High scrap steel prices are helping to boost
the bottom line at scrap dealers, according to John Anton, an economist in
Washington D.C. for the forecasting firm Global Insight, Inc. But he said
higher prices are often neutral, because dealers also have to pay more for
material. High prices mostly help steel suppliers who have a captive ore
“It is certainly helping integrated
mills. They are getting the benefits of high prices driven by scrap without
having to pay high prices for ore,” Anton said.
High production by domestic mills, plus exports
are driving high prices, Anton said. Mills were caught short on supply, he
said. Mills in Turkey, for example, were hit when bad weather in Russia and
the Ukraine prevented Turkish mills from buying scrap in Eastern Europe.
Turkey instead turned to the United States to buy scrap supply. ...read