Shares of steel producers fell hard Monday after buyers virtually suspended purchases in the expectation that the cost of steel product will fall.
"There's actually a buyers' strike at the moment," Soleil analyst Charles Bradford said in a telephone interview.
"Basically what happened is that the price of scrap steel plummeted in late August and early September between a third and a half, between $250 per ton and $300 per ton," Bradford said.
"But steel mills have only cut their prices by about $100 per ton, so buyers have been waiting for them to cut their prices accordingly.
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