The metal market was able to stop the skid for the time being as scrap prices for crushed auto bodies increased nationally 4.1% since last month. The average price per gross ton is now up to about $136. The end of the year increase is encouraging after three straight months of steady decline.
An article from The American Recycler, titled “Steel Industry Mergers and Acquisitions Slows” states that in the steel market, merger and acquisition activity has slowed in both volume and value of transactions. According to Brian Grant, managing director at Conway MacKenzie Inc., an international consulting and financial advisory firm,¹
“The steel industry is consolidating,” Grant said. “Steel has always been a highly cyclical industry with periods of excess production capacity, but the present state of the industry is different than previous downturns.”
Looking ahead a Wall Street Journal article quotes Argonaut Research in that, “We expect to see more consolidation in the commodity futures markets and a possible spillover in equity markets.”²
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