NEW YORK The United States has a new player in the bulk ferrous scrap export market, AMM has been told.
Stemcor USA Inc. has entered into a joint venture with a recently formed scrap company structured for bulk ferrous scrap exports out of southern Florida, according to several sources.
Stemcors scrap trading division has agreed to finance and trade bulk cargoes aggregated by a scrap company run by industry veterans Stuart Kroll and George Ginsburg, sources said.
New York-based Stemcor didnt respond to a request for comment. Ginsburg said he would neither confirm nor deny any of the details provided to AMM by market participants.
One source said identified the scrap company formed by Kroll and Ginsburg as Stonerock Shipping Corp.
Florida records show that Stonerock Shipping, based in Riviera Beach, Fla., was authorized to do business in the state in March 2012, with Stuart Kroll listed as a director and Ginsburg and Kroll named as officers of the company. Supporting documents show that the business was incorporated in Delaware on Nov. 2, 2011.
Subsequent filings with Floridas Division of Corporations show Ginsburg listed as the companys vice president and Kevin Kroll as the companys registered agent. Stuart Kroll, meanwhile, is listed under the title "CDP," but it is unclear what that stands for.
The Port of Palm Beach announced on Dec. 22, 2011, that it had entered into a long-term agreement with Stonerock Shipping, "whereby Stonerock will operate the first large scale bulk metals export logistics and shipping service out of the port."
Stonerock will receive the bulk metals by truck, rail and vessel, then store and load the material onto its own ships for carriage to major international steel companies in such countries as China, Malaysia and Turkey, it said.
Stonerock plans to partner with the steel companies to ensure a solid long-term foundation for its success in the export operation at the Port of Palm Beach, which eventually will reach 500,000 tonnes per year, the port said.
At the time, Stonerock was expected to install two permanent truck scales and radiation detection monitors at the port and contribute to the cost of new concrete surfacing of its wharfs.
Stonerock sold its first bulk cargo to Turkey a month ago under financing by Stemcor, a second source said.
The first source said Stonerock has secured a demolition project in southern Florida, with all the scrap generated from the site eventually reaching its own dock. The project "is expected to deliver 70,000 to 80,000 tonnes over its course," he said.
A third source familiar with this development said it is unlikely the demolition contract will generate as much as 70,000 tonnes of scrap.
"The company was started by a group of former owners of export yards that wanted to get back in the business. It is a partnership with Stemcor, which finances and sells the cargoes, while the other company buys the scrap and loads the vessel," he said.
The third source said the companys first cargo sale to Turkey comprised 20,000 tonnes of mostly plate and structural scrap, with some heavy melt.
This new venture is likely to ship cargoes of similar sizes once every three months, he said.
"It will be an ongoing venture even if its a cargo every three months. So in terms of volume, it is not a major market changing move," he said.
Ginsburg declined to comment because the company comprises "low-key people not looking to have any (exposure)," he said.