Search Copying and distributing are prohibited without permission of the publisher
Email a friend
  • To include more than one recipient, please separate each email address with a semi-colon ';', to a maximum of 5

  • By submitting this article to a friend we reserve the right to contact them regarding AMM subscriptions. Please ensure you have their consent before giving us their details.

Scrap steering for period of stability: Alvarado

Keywords: Tags  scrap metal prices, ferrous scrap, nonferrous scrap, Commercial Metals, Joseph Alvarado, earnings report, Americas Recycling, Lisa Gordon

PITTSBURGH — The scrap metal market is heading toward a quiet period due to an absence of near-term volatility, Commercial Metals Co.’s (CMC’s) top executive said.

“Our expectation over the (coming) quarter is sideways to slightly up,” chairman, president and chief executive officer Joseph Alvarado said during the Irving, Texas-based company’s fiscal second-quarter earnings call with analysts March 27.

However, Alvarado cautioned that prices could be negatively impacted if the export market runs cold because coastal scrap earmarked for export will make its way inland to domestic mills.

The political unrest in Ukraine could also potentially dampen domestic opportunities to export. “If there are disruptions in production, which we really haven’t heard or sensed, that could make scrap available for better prices for the Turks and take them out of the United States,” Alvarado said.

The company’s Americas Recycling segment logged an operating loss of $863,000 for the three months ended Feb. 28 in contrast to an operating profit of $2.2 million in the same period a year earlier on sales that fell 2.6 percent to $342.3 million from $351.3 million. CMC attributed the loss to a 5-percent decline in ferrous metal margins as costs for ferrous materials rose 7 percent, outpacing a 4-percent increase in ferrous selling prices.

The segment shipped 573,000 tons in the quarter, nearly flat with the 574,000 tons shipped a year earlier.

Have your say
  • All comments are subject to editorial review.
    All fields are compulsory.

Latest Pricing Trends