Below market. (Ferrous).Holiday season retailers who marked down merchandise before and after Christmas have nothing on ferrous ferrous (fĕr`əs), iron in the +2 valence state. Containing or having to do with iron. The difference between ferrous and ferric is the number of valence electrons they contain (ferrous contains two and ferric contains three), which scrap dealers, who have been forced to mark down their own prices once again. After American Metal Market's monthly average for November came in at the lowest price of the year, ferrous scrap dealers had little to look forward to in their conversations with mill buyers throughout the month of December. On the other hand, any conversation with a mill buyer is welcome as far as some scrap dealers are concerned. Even with generation down, inventories are piling up in many scrap yards. The inventory situation at scrap yards is coupled with an identical build-up build·up also build-up n. 1. The act or process of amassing or increasing: a military buildup; a buildup of tension during the strike. 2. at many mills with reduced melting schedules. Added to this oversupply o·ver·sup·ply n. pl. o·ver·sup·plies A supply in excess of what is appropriate or required. tr.v. o·ver·sup·plied, o·ver·sup·ply·ing, o·ver·sup·plies burden is scrap that is being liquidated DAMAGES, LIQUIDATED, contracts. When the parties to a contract stipulate for the payment of a certain sum, as a satisfaction fixed and agreed upon by them, for the not doing of certain things particularly mentioned in the agreement, the sum so fixed upon is called liquidated damages. (q.v. at shuttered shut·ter n. 1. One that shuts, as: a. A hinged cover or screen for a window, usually fitted with louvers. b. facilities such as the former CSC (Card Security Code) A three- or four-digit number printed on the back of credit cards for security purposes. Called "Card Verification Value" (CVV) by Visa, "Card Validation Code" (CVC) by MasterCard and "Card Identification (CID) by American Express and Discover, mill in Warren, Ohio Warren is a city in the U.S. state of Ohio and the county seat of Trumbull CountyGR6. The municipality is located in northeastern Ohio, approximately 14 miles (22 km) northwest of Youngstown and 15 miles (24 km) west of the Pennsylvania state line. , and at several other mills throughout the country. The oversupply burden is not likely to be quickly remedied by shipments to overseas mills. Export numbers were down through much of 2001, and there is nothing to indicate that the Asian economy has rebounded to a point where South Korean, Japanese or other East Asian mills will come into the market in a major way. (Exporters are not uniformly gloomy. See the story on ferrous scrap exports in the Ferrous Scrap Supplement in this issue.) With demand soft and prices low, processors are increasingly charging industrial accounts for scrap pick up services. Many are willing to bring in a little less material considering the current lack of demand, and most processors are unwilling to lose what little margin remains by dropping off and picking up containers at a loss. No. 1 Heavy Melt Composite Pricing (Per gross ton. monthly average) November 2000 $74.53 December $78.60 January 2001 $84.83 February $75.37 March $76.77 April $77.90 May $76.67 June $78.62 July $79.81 August $80.00 September $80.00 October $73.29 November $64.97 Source: American Metal Market |
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