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Monthly Archives: September 2012

Owego, N.Y.-based Upstate Shredding LLC has acquired the services of 20-year industry veteran John Silva. Silva previously worked at New York-based Sims Metal Management Ltd, where he was vice president of Northeast operations. His noncompete contract with Sims is still in effect, so he will be based out of Upstate Shredding’s Ben Weitsman & Son Inc. retail scrap operation in Buffalo, N.Y. until it expires.

At his permanent post, Silva will assist Upstate Shredding with their proposed Port of Albany export terminal and full-service scrap yard, which would be 18 acres upon completion, with an expected process rate of over 1 million tons of ferrous scrap metal, and 200 million pounds of nonferrous scrap metal in 2013.

Source: AMM

Stiffer scrap metal rules are set to go into effect the beginning of December for scrap recyclers and their suppliers in Flint, Michigan. The rules under the new ordinance are some of the toughest in the country, and local buyers are suspicious of the motives surrounding the ruling, and frustrated by the harshness of the ordinance.

The rules include banning anyone with a known alcohol or drug addiction from buying or selling scrap metal, and require recyclers to obtain a scrap metal purchasing license for each facility it operates. These applications will be reviewed by the fire, police, and building and safety inspections departments before next being taken up for vote by the city council (source: AMM).

Scrap yards will be required to verify each customer’s valid permit, and if the scrap yard does not immediately report any customer attempt to sell metal without a permit, it will be fined $500 and a 30-day closure.

Furthermore, aluminum siding will not be allowed to be sold, and no scrapyards may operate between the house of 9pm and 7am. Barbed wire will be required to fence in each yard.

Although the law seems to be trying to further curb scrap thefts, buyers and sellers feel unfairly repressed, and some buyers are afraid that business will decrease in Flint as a result, instead going to neighboring places with less restrictive rules.

Chicago-based ArcelorMittal USA Inc. and unionized workers were able to reach a tentative deal this past Saturday on a three-year labor contract, after ten long weeks of meetings. The agreement, if accepted, would cover almost 14,000 United Steelworkers union members, and would prevent a possible operations disruption and price increase as a consequence.

The 4-year contract that expired on the 1st of September will remain in effect until the new deal is ratified through a union vote. Sources involved have expressed optimism, saying they are confident the vote will go through.

With the new deal expected to be accepted, ArcelorMittal and U.S. Steel Corp. should both be able to continue without any disruption to output.

Chinese cold-rolled sheet metal is being offered at increasingly competitive prices, according to a recent report from American Metal Market (AMM). The material can now be obtained at a steep discount to domestic product, which industry experts say is largely due to recent oversupply and overall slowing demand in China.

Much to the surprise and frustration of the manufacturing sector, Chinese cold-rolled prices are even lower than hot-rolled sheet prices in the U.S. This is cause for some concern, as transactions from other foreign mills are now being negatively affected because buyers are bargaining down prices.
China’s share of the U.S.’s cold-rolled market was lower between 2006 and 2009; but with 113,103 tonnes of Chinese cold-rolled sheet arriving in the U.S. during the first half of 2012, China could be looking at an upswing.

While China’s exports are causing frustration in the U.S., China itself may not be making much of a profit – demand is extremely weak there, as are prices. Chinese mills continue to compete with each other for the U.S. manufacturing sector, and many are not seeing much return on their cold-rolled investment and efforts.

Data from AMM.com