Great American Group Analysts See Prices Drop for Ferrous Scrap
-Declines in April scrap pricing could lower prices of downstream steel
WOODLAND HILLS, Calif. -- April 18, 2013
Analysts with Great American Group, Inc. (OTCBB: 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
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
Great American Group’s newest monthly Metals Monitor with industry trends is
available on the company’s website at
For more information about asset disposition, valuation and appraisal services
available through Great American Group, visit www.greatamerican.com.
About Great American Group, Inc. (OTCBB: 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.
Great American Group
Michelle Kahan, 818-884-3737
Director of Marketing
Mulberry Marketing Communications
Christina Bereta, 312-664-1532
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