According to Mr Spencer Johnson, a risk manager at INTL FCStone Inc, scrap steel prices in the US, down by 26% in 2012, may rebound in November 2012.

Mr Johnson said that "Mills are already raising prices for finished steel, and part of the reason may be that they are expecting higher costs for scrap metal used to make steel."

He said that producers are likely to be partially successful in their bid to charge more for finished steel, and may try again to push for the higher price in November 2012.

The average price of shredded steel scrap fell 3.7% in September 2012 to USD 392.50 a long tonne. In 2011, recycled metal surged 12%, after a 40% increase in 2010.

Source - Bloomberg

(www.steelguru.com)