Scrap steel prices took a larger than anticipated hit this month plummeting $25 locally and down $20-$25 across the rest of the nation. Early speculations pegged the market to fall $10-15 but these estimations were short lived as market sentiment turned more negative as October approached. With several mill outages scheduled in the US this month and an even weaker (near non-existent) export market, there is an abundance of scrap available to domestic mills allowing them to manipulate prices and buy at lower levels. Some feel that this negative trend may continue through next month while others are speculating that the market has overcorrected and mills will need to re-adjust prices in November to secure proper tonnages thru the winter months when scrap flows are reduced.
September proved to be a rough month across the board as all base metals posted sizable losses. Copper continued its downward trend failing to gain any traction and ending the month down 4.5%. Both Aluminum and Nickel had a strong August, but were unable to hold their upward momentum and saw substantial losses. Aluminum ended the month down 8.5% while Nickel was the big loser ending the month at down 15.5% causing stainless prices to fall sharply.
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