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 area.
Chicago-based Evraz 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.
"Yeah, theres 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."