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Increased shipments boost OmniSource’s 2d-qtr. results

Keywords: Tags  ferrous, nonferrous, shredder, OmniSource, Mark Millett, Steel Dynamics, Severstal, Lisa Gordon

PITTSBURGH — OmniSource Corp. posted an all-around improvement in the second quarter, when 46 percent of its shipments went to Steel Dynamics Inc. (SDI) mills.

The metal recycling arm of SDI posted operating earnings of $18.4 million for the three months ended June 30, up 16.5 percent from $15.8 million in the same period last year on sales that climbed 12.2 percent to $891.6 million from $794.8 million.

Ferrous scrap volumes improved, but the market remains challenging due to lingering shredder overcapacity and a lackluster export market, SDI chief executive officer Mark Millett said.

The company’s decision to buy Russian steelmaker OAO Severstal’s mill in Columbus, Miss., could bode well for the recycling arm in the future as OmniSource could increase its supply of material to the mill. The Columbus mill will increase the steelmaker’s melting capacity by 40 percent.

Ferrous scrap shipments by OmniSource totaled 1.42 million tons in the second quarter, up 6.6 percent from 1.33 million tons a year earlier, while nonferrous shipments jumped 13.3 percent to 288.2 million pounds from 254.4 million pounds.

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