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European traders are preparing to steel scrap deficit

According to the market participants’ data, steel s rap prices in UK have firmed in the forefront of increased activity of European buyers. Stainless scrap wholesale prices (18/8 grade) grew in last week of January by 50 pounds, to 650–700 pounds per ton ($940,3–1011). At the same time European prices remained at the same level $1050–1100 per ton CIF.

One of the British sources said: “Among the traders there is something like a competition for the commodity available. However, now there is not much scrap available”.

Some traders think that scrap remelting plants are loaded by 50% only. However, they will increase scrap consumption in Q2 2009 as soon as scrap in stock will run out. “I think, that it will be clear soon that there is little scrap and this can cause deficit”.

Feb 5, 2009 12:28
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