FULL OF SCRAP It’s time to close the book on one era and open another
Apr 01, 2008 | 11:16 AM
Nucor Corp.'s decision to buy its scrap broker, David J. Joseph Co. (DJJ), came as no surprise. As I noted in a story following the steelmaker's announcement of the $1.44-billion deal in mid-February, it had been one of the longest marital engagements in the steel and scrap industries. DJJ has been Charlotte, N.C.-based Nucor's scrap buyer since the steelmaker was formed in 1969.
Unlike rival Steel Dynamics Inc., which bought major Midwest scrap processor and trader OmniSource Corp. last October, Nucor will not be oversupplied with scrap. DJJ has 12 shredders and 35 yards that can process more than 3.5 million tons of ferrous scrap, but that's only a fraction of the material that Nucor melts each year. The icon of the mini-mill industry is anything but mini, consuming 22.8 million tons of iron and steel scrap last year. DJJ won't be able to feed Nucor's furnaces from its own yards, but its brokers managed to come up with about 20 million tons of scrap from other suppliers during 2007.....
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