Ferrous scrap sellers in the United States who were hoping for the traditional New Year price increase instead got a rude awakening, with the market suffering a major correction for the first time in January since 2006.
After the market settled, shredded scrap, No1 busheling and cut grades fell by $30 per gross ton throughout the Midwest. With so much scrap unplaced and expectations by some that February will see another price fall, mills are now making low offers to take advantage of the scrap overhang pervading the market."If you want to sell now, it is a panic sale," a Midwest processor said. "Prime scrap and cut [grades] like plate and structural are being quoted down $50 a ton simply because the mills can right now."Large sellers have also been going back to mills and offering to unload tons at a larger discount...