PITTSBURGH U.S. scrap
prices are expected to gain some strength during the current
quarter despite a sluggish start to the market in 2013,
according to Commercial Metals Co. (CMC) chairman, president
and chief executive officer Joseph Alvarado.
The optimism stems from the
historical trend, with Alvarado noting during a conference call
on the companys fiscal first-quarter earnings results
that scrap prices for January are ranging from flat to slightly
The coastal regions of the
country are showing stronger prices, whereas the central United
States is shaping up to be sideways.
"Coastal seems to be impacted
more from export," Alvarado said, adding that theres no
clear visibility on next months prices. "(They are) off
to somewhat of a slow start in January and we fully expect it
to improve, but it is too early to call that right now."
Lower demand, weaker selling
prices, and fewer ferrous and nonferrous scrap shipments hit
the Irving, Texas-based companys scrap division during
the fiscal first quarter.
The Americas Recycling segment
posted an adjusted operating profit of slightly less than $4.5
million for the three months ended Nov. 30, down 78.4 percent
from a $20.8-million operating profit in the same year-ago
period, on sales that declined 15.2 percent to almost $352
million from $414.8 million.
Americas Recycling segment
shipments totaled 562,000 short tons during the quarter, down
36,000 tons from the same year-ago period. Of that, ferrous
shipments dropped 10 percent year on year to 503,000 tons and
nonferrous shipments eased 2 percent to 59,000 tons, the
company said during the call.
Ferrous scrap prices averaged
$322 per ton, down 8 percent year on year during the quarter,
and nonferrous shipments fell 4 percent to an average of $2,798