‘Clunkers’ scrap supply impact seen minimal

Nov 02, 2009 | 11:35 AM | Lisa Gordon

The "Cash for Clunkers" program will have very little material impact on the scrap supply system, two mill buyers said Monday at AMM's Steel Scrap and Raw Materials conference in Charlotte, adding that they also expect next year to be a welcome improvement over 2009.

"The U.S. should produce 60 million tons this year and half is (electric furnace, which is highly scrap dependent). So 750,000 tons is less than a thirtieth of the need in the marketplace (if 60 million tons is produced)," according to Toby Powell, purchasing agent at Steel Dynamics Inc. (SDI), Fort Wayne, Ind. "It (Clunkers) may displace some scrap, but should not have any material impact. I think the inflow will be a gradual thing. I don't see a real marked effect on scrap."

H. Allen Grow, sourcing manager of scrap at ArcelorMittal's Steelton, Pa., plant, agrees. "I think inflow (from 'Cash for Clunkers' will be a gradual thing and I don't see a real marked effect on scrap," he said. "It (material from the scrapped cars) won't be into the scrap market system until March of next year and each car may have a ton of steel," he said.....





Latest Pricing Trends

Poll

Is severe weather affecting your business?

Yes
No


View previous results