Platts reported that prime industrial ferrous scrap has softened by USD 35 to USD 40 per long tonne from highs near USD 900 per light tonne as more scrap processors finished their August 2008 transactions for shredded ferrous scrap within the Platts assessed range, leaving the assessed price for shredded scrap delivered to Midwest mills at a midpoint of USD 565 per light tonne.

The downward movement of prime industrial scrap mirrors pig iron price drops of approximately the same magnitude. Pig iron is now said to be selling for USD 900 per tonne Port of New Orleans, down from previous highs of USD 930 per light tonne to USD 940 per light tonne in July 2008.

While August 2008 ferrous scrap prices are softer, sources expressed caution that the market could snap back as colder winter weather curtails inbound scrap flows or if Turkish mills vigorously return to buying US scrap exports.

It is reported that CR silicon steel and HR silicon steel prices usually present a CNY 500 per tonne around discrepancy, citing “DR-510″0.5*1000*2000mm and “50WW800″0.5*1200mm*C. Once the price discrepancy expands to CNY 800 per tonne or above, the sales would tip in favor of HR silicon steel, otherwise, when it narrows to CNY 200 per tonne or below, the buyers tend to prefer CR silicon steel.

As per report April 2008 narrowing of price discrepancy is remarkable in Shanghai, and 800 low grade CR silicon steel price posted no more than CNY 200 per tonne higher than the HR silicon steel. This makes merits of CR silicon steel more obvious as it has a coat that helps improve insulating capability while used in electric motor and home appliance, while HR silicon steel hasn’t and needs to spend some CNY 400 per tonne to make it up; secondly, utilization rate of CR silicon steel is 5% to 10% higher than HR silicon steel.

Consequently, the CR silicon steel is advantageous in sales in the market now and HR silicon steel may move downward amid stability and is advised to enlarge the price difference for better marketing.

(Sourced from MySteel.net)