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.
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.
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
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
"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
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
Ginsburg declined to
comment because the company comprises "low-key people not
looking to have any (exposure)," he said.