Scrap prices in the US may drop further in July as the summer's decline hampers US iron trade and leads to a decline in scrap demand in the short term.
Slowdowns in production and exports, a summer classic, are expected to put further downward pressure on the US scrap market in July, pointing to possible declines in scrap prices for the third consecutive month across all grades.
The fact that the market will move lower in July is attributed to the weak scrap demand. Some market players expect stock levels to remain unchanged in July.
Shredded scrap is, once again, less in demand than cut and primary grades. While first class scrap is expected to see the highest demand; The main reason for this is seen as the recent increases in hot rolled coil by US steelmakers have stabilized the market for these grades at best.
The overall trend consensus fell from 65% in June to 60% in July, indicating that confidence in the market's trajectory for the next month is fluctuating.
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