Last week international markets began to capitulate. CIS HR- approximately $560 /ton. Markets are weak in Asia as major de-stocking going on. Capacity is being taken out of Europe and Asia.
NYMEX futures made large down move for the week.
Expectations are for USA scrap to come down by $30/ton. Mills are already pricing this in to quotes. Look for $40/$60 as a possibility. But be careful here as rebar in the Middle East is holding up (as opposed to china where it is off $100).
Spot ore continued to fall last week. The world cost to make HRC is coming down by the day.
Look for the world market to reset in 1Q. Many consultants are forecasting a snap back to at least $800 and even $900 in 1Q.
-Expect more pricing pressure this week.