High and flighty.The three-month downward trend in 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 pricing reversed sharply in July, as prices for all grades of ferrous scrap zoomed back up in the summer months. Observers seem to agree that global demand has remained strong even as the traditional summer downtime hit North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and Western Europe Western Europe The countries of western Europe, especially those that are allied with the United States and Canada in the North Atlantic Treaty Organization (established 1949 and usually known as NATO). , Including the annual model-change-over hiatus in the automotive industry The automotive industry is the industry involved in the design, development, manufacture, marketing, and sale of motor vehicles. In 2006, more than 69 million motor vehicles, including cars and commercial vehicles were produced worldwide. . As of August, "there is more scrap available than there was earlier this summer," according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. one ferrous scrap recycler based in the Great Lakes region The Great Lakes region can refer to:
A spell of dry weather in the Great Lakes region has also helped to salvage more vehicles from rural areas. "They're getting the cars out now while it's dry and while they know scale prices are good," the recycler remarks. But the increase in scrap supply could also mean that the price spike will be short-lived. "Even if the consumer demand remains good, this increased supply should put a brake on pricing," he notes. Nonetheless, scrap recyclers and their consumers can take comfort in a historically good market, he says. "Even if the market goes back down by $50 or $60, this is still the kind of market that will be talked about for the next 20 years or so." Based on recent earnings reports, the steel industry has also managed to find profit margins, offsetting higher raw materials costs with surcharges passed on to customers. "It sure looks like the surcharges are more than covering their costs," says the recycler. (Additional news about ferrous scrap, including breaking news and consuming industry reports, is available online at www.RecyclingToday.com.) |
|
||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion