Outlook: price floor may be breached

摘要

While dealers may be right in calling a floor to scrap prices, weakness in finished steel markets andcompetition from Chinese supply is continuing to limit the profitability of steelmakers in the region. InItaly, there are reports that steelmakers may idle capacity during December and January for between threeand five weeks, likewise in Turkey. This would reduce scrap demand, placing further downward pressureon prices.