Schnitzer Steel Industries, Inc. reported positive financial gains this week, with $0.41 earnings per share, compared to losses in the second quarter of 2016. Ferrous sales volumes also increased 13% in the third quarter of 2015. Total domestic volume remains low, as scrap products are exported to international buyers (including India, Turkey, and South Korea).
Scrap Metal Market Holds Steady Scrap metal prices for crushed autobodies held steady with 2.17% growth over the past month (see June 2016 Scrap Metal Market Watch), and have grown 31.62% over the past year. Across the Atlantic, the Brexit vote sent a shockwave through the base metal market, temporarily causing prices to plummet. However,
A double-edged metal sword As domestic prices rise from a tariff on Chinese steel, some worry the lack of cheap metal will weaken the ability for U.S. manufacturers to compete in the global marketplace. Now the greatest fear we have is that China keeps the cheap steel for itself and makes products that undercut other
Scrap Metal Market Trends Scrap metal prices for crushed autobodies continue to increase 22.52% over the past month (see May 2016 Scrap Metal Market Watch), and have grown 19.51% over the past year. In May, government incentives for steel manufacturers in China were met with a strong response by the U.S. Commerce Department, which imposed
In an effort to combat Chinese subsidies of steel production and exports, the US Commerce Department has raised import tariffs by over 500%. At the same time, the International Trade Commission is reported to be considering a complete ban on all Chinese steel imports. 1 Last year, the US steel industry laid off approximately 12,000
Lithium to Benefit Aluminum, Copper Today, battery-powered vehicles represent only 2% of the consumer market, with lithium demand for batteries at about 175,000 tons annually. Manufacturers including Tesla, Chevrolet, and Nissan have plans to expand production significantly over the next five years, requiring more lithium, which is concentrated in a handful of locations in Chile,
The U.S. Commerce Department is pushing back against Chinese incentives that benefit steel, aluminum, and copper exports. The economic response includes import duties of 266% on imported Chinese cold-rolled steel, and seven new investigations targeting government subsidies of Chinese goods. India and Australia are challenging China as well, launching their own investigations and raising import
Aluminum Use on the Rise To convert vehicles to aluminum, Ford is estimated to spend $1 billion retooling its facilities in Dearborn, Michigan, and Kansas City, Missouri, said Vince Pavlak, a partner advisory at KPMG, who also spoke during the Wednesday session. Later this year, Ford is coming out with the all-aluminum Super Duty truck.1
Scrap Metal Market Trends Scrap metal prices for crushed autobodies have slightly increased 17.60% over the past month (see April 2016 Scrap Metal Market Watch), and a small uptick of 3.62% over the past year. Over the past month, the automotive industry has struggled to look for an innovative response to continued devaluation. The downward
Analysis Shows Continued Decline Scrap metal prices have fallen by 50 percent in four years, forcing scrap yards to find ways to navigate a tough market. Demand from overseas markets like Turkey and China, which were big customers of scrap metal in boom times, has slowed. Industry watchers say 2015 was an exceptionally awful year