US scrap spot prices likely to rise in 2008
According to Mr Mike Locker of US based Locker Associates, domestic steel scrap prices are on pace to increase by 35% in 2007 because of solid domestic demand combined with explosive global demand that has tightened supply.
He said "Supply is tight even as domestic demand has dropped 5% because exports have been surging 24%. Looking ahead, steel scrap supply will be even tighter and prices will go even higher in 2008. Scrap demand will continue to grow in the future and that will make life difficult for the scrap buyers at the mills."
Mr Locker said that "For ferrous scrap suppliers, these are boom times. Scrap prices will do nothing but rise."
Other analysts also are looking at scrap price increases ranging from 8% to 11% next year and said that the fundamentals for scrap are decent for the remainder of the year and through 2008.
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