Monday, October 4, 2010
US scrap market players are expecting lower scrap prices next month, mills and traders have stated.
“It appears the market will be down by $20-25/long ton due to the lack of new export business,” said one source in the Mid-Atlantic states.

“The foreign buyers have been very good at watching for dips in our market, and I think this pattern will continue. When they resume buying it has the effect of pushing the domestic market back up. Underlying it all is the fact that scrap supply is very thin. (It) makes for a very interesting situation,” he said.

Another source said shredded scrap prices have declined by about $10/l.t already from September’s $365-375/l.t (delivered mill), with the expectation they will decline by another $10/l.t in the next two weeks.

He and others report seeing negative momentum in the scrap market in general.

MHIA Forecasts 12.0-14.0% Growth in Material Handling Equipment New Orders in 2010Monday, September 20, 2010 Material handling equipment orders contracted 34.3% in 2009 are forecasted to grow 12.0-14.0% in 2010 if current momentum maintains, according to the latest Material Handling Equipment Manufacturing Forecast (MHEM) released by Material Handling Industry of America (MHIA). The outlook for 2011 is for growth in the 11.0 to 12.0% range.

“Industrial Production increased significantly in the first half of 2010 even though factory operating rates (utilization) remained very low by historical comparison," said Hal Vandiver, MHIA executive vice president of business development. "The demand that was created as the economy shifted from recession into recovery mode (filling supply chain pipelines, re-establishing inventories, and responding to pent up demand) was the principal impetus for improvement in the first two quarters in manufacturing, warehousing and distribution.”

"Forecasts are now calling for a combination of reduced GDP, corporate profit, business investment and output growth with utilization remaining below 75.0% until late 2011," added Vandiver. "This is largely due to uncertainty - consumers, investors and business owners need greater confidence in the economy's ability to sustain positive growth."

In addition, material handling equipment shipments contracted 33.4% in 2009 and are forecasted to grow 3.0 to 4.0% in 2010 and another 10.0 to 11.0 % in 2011. Domestic demand (shipments plus imports less exports) contracted 33.7% in 2009 and will grow 1.0 in 2010 and will likely mirror shipment growth in 2011. Exports will be stronger than Imports in 2010 and 2011.

The MHEM forecast of material handling equipment manufacturing is released each quarter by MHIA and looks 12 to 18 months forward to anticipate changes in the material handling and logistics marketplace.