NEW YORK Scrap
metal suppliers to Evraz Inc. North Americas Claymont,
Del., plant are bracing for the impact of the mills
idling, with the move likely to boost scrap supply in the
announced Oct. 14 that it will suspend operations at Claymont
by year-end due to subdued demand and high import volumes in
the steel plate market (
amm.com, Oct. 14).
The move will
effectively eliminate Claymont as a ferrous scrap consumer for
the Philadelphia region, with Chicago-based ArcelorMittal USA
LLCs mills in Coatesville, Pa., and Steelton, Pa.,
remaining as the major consumers.
One scrap supplier
told AMM that the Claymont plant will no longer accept
scrap metal deliveries after Oct. 14, although an Evraz
spokeswoman denied the claim.
However, the majority
of suppliers contacted by AMM agreed that the idling
will give ferrous scrap supply in the region a boost.
"It takes 25,000 gross
tons per month of consumption out of the market. Dealers that
had sales into the mill are all trying to figure out where they
will move their scrap now," the scrap supplier said.
"Its not going
to have a good impact," a second scrap supplier said. "That
stuff is going to have to look for a place to go."
However, a third scrap
supplier forecast that there would still be enough scrap demand
to keep pricing relatively stable.
going to be some material looking for homes, but some of what
they were buying was from out of the area," he said.
"Personally, I would say that the market will settle where it
needs to; we still have docks in the area, theres
Coatesville and Steelton. People can ship to other mills by
rail, so I dont think it will have a drastic impact on
pricing; you will still have people competing for scrap."