Keywell LLC has temporarily shut three scrap metal processing
facilities due to continued weakness in scrap demand.
"We have temporarily
shut our Detroit, Atlanta and Chicago facilities while
stainless demand remains weak. We continue to fully operate in
Los Angeles; West Mifflin, Pa.; Fairless Hills, Pa.; Frewsburg,
N.Y. (two facilities); and Top Hill, N.C. (two facilities)," a
company source told AMM. "Its basically a summer
shutdown and hopefully demand picks up sooner vs. later."
All of the temporarily
shuttered facilities process aerospace-grade scrap metals,
including stainless and specialty steels. The Chicago-based
company couldnt be reached for further comment.
Demand for stainless
scrap has fallen off sharply in recent months, along with
pricing, sources have saida trend that has been
exacerbated by the traditional summer slowdown in business
amm.com, June 18).
scrap market participants expressed doubt that the Keywell
closures would have any real effect on free-market prices.
"I think the
ramifications are difficult to foresee. If nothing else, it
should reinforce the truth in the marketplace of how tough it
is currently. There are some people that think its one of
these things and well snap right back to it, but
its a little more painful than that," one scrap processor
told AMM July 1.
"The potential impact is that more cautiousness has to be
expressed in the stainless market," a second processor said.
"Pricing is a separate issue altogether. Its just
indicating that stainless is a difficult business in difficult