According to Mining News Pro - Will low supply underpin the steel scrap market in December?A seven-month run of price drops in the North American ferrous scrap market could come to a halt in December, with diminished supply levels expected to offset sluggish demand.
A modestly bullish sentiment pushed the Trend Indicator back into positive territory at 55.2 in December compared with 40.6 for November. The Outlook’s prediction model suggests a potential for ferrous scrap prices to rise by 0.2% on average next month.
What does the market say about steel scrap price movements?
39% of respondents from our market survey of over 2000 participants expect steel scrap prices to increase, while just over one-third forecast the market to trade sideways. Nearly one-quarter of respondents expected a slowdown in generation and collection levels of scrap to be the main driver, while one-third pointed to lower demand. A quarter forecast unchanged market conditions.
The overall trend consensus, however, fell to 51% compared with 59% in November, showing that confidence in the market’s direction has decreased. Forecasts for the market further forward were also positive, with the three-month indicator remaining bullish at 62.3 and the six-month indicator at 66.
Over half of the respondents expected prime scrap to perform the strongest in the near-term, with supplies easing over the next 60 days because stamping plants traditionally run for only three weeks in November and December due to the holidays.