WOODLAND HILLS, Calif.--(BUSINESS WIRE)--
Analysts with Great American Group, Inc. (GAMR) report pricing for ferrous scrap has decreased recently, as scrap flows slowed amidst lackluster demand from steel mills. The April price decline follows a price hike of approximately $40 per gross ton in March.
“Scrap is a primary input for downstream steel products such as flat rolled steel, steel plate, and rebar, and fluctuations in scrap pricing can therefore influence prices for these downstream products,” noted Michael Petruski, executive vice president of Great American Group’s Advisory and Valuation Services division. In the first quarter of 2013, steel prices remained relatively steady.
According to Great American Group’s newest monthly Metals Monitor, since steel companies typically restock inventory in the first quarter of the year, many were able to hold inventory near market prices. In addition, sales trends improved in the wake of reviving demand from end-markets.
Although flat rolled steel prices have been relatively stable thus far in April, Great American Group analysts believes they are poised to drop as scrap prices drift downwards and the steel market heads into a summer slowdown. Average steel plate prices increased recently after months of declines, but it remains to be seen if the price hikes will stick, or if falling scrap prices and competitive import offers will pull down plate pricing. Rebar prices slipped in early April as buyers delayed new orders until they had a better understanding of how scrap price trends would affect rebar pricing.
“Lower steel prices could negatively impact companies that restocked inventory during the first quarter at higher costs,” explained Petruski. “Moreover, despite positive demand indicators, end-markets have recently become more cautious, given the uncertainty regarding the government’s fiscal spending policy.”
Great American Group’s newest monthly Metals Monitor with industry trends is available on the company’s website at http://www.greatamerican.com/news_media/downloads/Metals%20Monitor%20-%20April%202013.pdf
For more information about asset disposition, valuation and appraisal services available through Great American Group, visit www.greatamerican.com.
About Great American Group, Inc. (GAMR)
Great American Group is a leading provider of asset disposition and auction solutions, advisory and valuation services, capital investment, and real estate advisory services for an extensive array of companies. A trusted strategic partner at every stage of the business lifecycle, Great American Group efficiently deploys resources with sector expertise to assist companies, lenders, capital providers, private equity investors and professional service firms in maximizing the value of their assets. The company has in-depth experience within the retail, industrial, real estate, healthcare, energy and technology industries. The corporate headquarters is located in Woodland Hills, Calif. with additional offices in Atlanta, Boston, Charlotte, N.C., Chicago, Dallas, New York, San Francisco, London and Milan. For more information, call (818) 884-3737 or visit www.greatamerican.com.
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