October 14, 2008

Scrap steel prices are up - CMC

Commercial Metals Co said this week that prices for the scrap metals it sells are up significantly in the quarter ended February 29th 2008.

CMC in a statement said that its recycling business saw average ferrous scrap sales prices for the quarter increase USD 73 per short ton to USD 287 and the average nonferrous scrap sales price for the quarter was USD 2,780 per ton up by 2% YoY.

Mr Murray McClean president & CEO of CMC said that “December ended excess inventory hangovers and the quarter saw an unanticipated USD 97 per short ton spike in ferrous scrap pricing followed by an USD 85 per ton increase in rebar and merchants by quarter end.”

Mr McClean added that “For the rest of 2008, supply of steel products in global markets is likely to be significantly impacted by the Chinese cut back in steel exports. The recently announced contract iron ore prices for 2008 up by 65% should support higher pig iron and ferrous scrap prices in global markets."