US mills have announced a $40-60/ton price increase in the past month. Given market conditions, less than optimistic economic reports, and increases in production capacity, MBR believes it is unlikely that much of that price increase will be realised. Rather, what is more likely to happen is that a pricing floor will be set for when the summer lull, which seems to be coming early this year, is indeed over. A surprise increase in ferrous scrap pricing in June is expected to help the mills find that floor through flat substrate costs.
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