NY, NJ shredders expect onset of Sandy scrap

Nov 21, 2012 | 03:10 PM | Sean Davidson

Tags  scrap, ferrous scrap, Hurricane Sandy, shredded scrap, automotive scrap, housing scrap, Sean Davidson

NEW YORK — Shredders in Hurricane Sandy-ravaged New York and New Jersey expect to be inundated with totaled cars in the next two months, according to several market participants, although the impact on ferrous scrap buying prices at steel mills in and around the Mid-Atlantic region could be minimal.

Industry consensus shows that anywhere from 100,000 to 250,000 damaged cars could enter the recycling stream during the next 60 days. According to industry estimates, 100,000 cars can deliver about 80,000 tons of scrap, indicating a huge onslaught in the coming months.

Sources also anticipate large volumes of light iron shredder feed coming in from damaged housing and commercial sites. The combination of construction wreckage and auto bodies will likely push shredder feed prices lower when volumes peak at shredder scales, but most sources suggested it would have little impact on consumer buying prices because the excess flow of scrap will reach an area that has few steel mills.....