More on the Price of Scrap
I recently wrote an article about why the price of scrap has risen when the demand for steel continues to languish. I offered my take on it and asked others to offer theirs. Well, it seems World Steel Dynamics has responded (ok, so they were probably just responding to a multitude of people asking the same question so shoot me) by asserting most of what I stated and adding additional insight. We may have to take a closer look at how we go after scrap.
Tags: scrap prices, Steel
December 16th, 2009 at 5:42 pm
If I understand this correctly:
On the surface you would think the reduced scrap production due to reduced steel use would be directly proportional, self adjusting and therefore would have null effect on pricing over the long run. This apparently only applies to the local situation. If we step out of the box and look globally at the whole “bathtub” less scrap means less steel available for anyone looking for it anywhere and therefore has the potential to raise prices.