2304 GMT [Dow Jones]–Spot steel scrap prices are back at a discount versus pig iron after a 23% drop over the past five months, Citi analyst Ephrem Ravi says in a note. “This removes some downside pressure on scrap prices in the short term, but also removes some marginal downside support for iron-ore prices that we had over the summer,” he says. Given scrap is the closest alternative for iron ore in steel making, prices of scrap and iron ore “are always correlated,” he says. Scrap has typically traded at a $5/metric ton discount to the pig-iron equivalent price over the past decade. It is now at a $10 discount, after…
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