...Insight steel analyst. But even those price levels may be too high. “I don’t see how low worldwide demand can support these prices,” he points out.
Steel prices are being driven not by demand but by a surge in scrap prices. “Scrap prices have gone crazy since late 2009. They are now just below 2008’s peak, and they could end up duplicating the 2008 spike,” says Anton. “Right now, inventories are thin, which is allowing higher prices to sneak back in. But once inventories are restocked, I think we will see prices fall back off.”