The US ferrous scrap market is showing no signs of retreat ahead of the December trade, with sellers confident that fundamentals will remain in their favor through the January trade - even if export market opportunities grow cold.
Sentiment for the the final trade of the year is positive, with some participants calling the December market sideways at worse. Many sellers suggested they will hold material for the traditional January increase if mills are not willing to be generous."The [November] market was a surprise. Mills had thought they would give dealers up $40 per [gross] ton in November and another $20 per ton in December. Boy, were they wrong," an Ohio broker said.Said a Cincinnati seller: "It changed by the minute. In 40 years, I have never seen a market like this."A combination of a fantastic export market and strong mill demand that has had a good run all year contributed to a supply crisis...