16 May 2014 Last updated at 08:21:32 GMT
WASHINGTON (Scrap Monster): The earnings statement by the leading US recycler Metalico forecasts the domestic ferrous scrap prices to remain under pressure as long as the export market continues to remain weak. A pick up in US scrap export market may provide some relief to the depressing prices.
Much of the scrap at export yards were fed to local markets. The low overseas demand forced many domestic exporters to route their scrap to inland markets. The abundant supply of scrap from export yards led to higher bargaining by domestic mills. The scrap buying prices by domestic mills witnessed a huge decline through the first quarter of the year. The total US scrap exports touched an eight-year low during the initial quarter of 2014.
According to Metalico, the imports of finished steel by the country increased significantly during the period. The increased finished steel imports reduced the mill demand for scrap. This in turn has affected the selling prices of scrap generated in the interior regions of the US.
The ferrous scrap shipments were largely affected by severe weather conditions that prevailed across the country. However, Metalico managed steady shipment rates through the quarter. The ferrous scrap shipments by the company improved by 3% when compared with the same quarter last year.
Metalico is a leading full-service, broadly diversified scrap metal recycler, principally operating in the Northeastern United States. Metalico also is a leading fabricator of non-battery lead-based products, manufactured principally for commercial, industrial, and radiation shielding applications nationwide.
Author: Paul Ploumis