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Just saw this online, but don't have an account for 'American Metal Market'. ($3000 subscription to access the site) Does anyone have access to this that could post this article?
I warned about a month and a half ago about a large player potentially going to $0.00 for shred (forgot what thread it was in).
Really curious as to what this article says as their North Haven Connecticut shredder yard is still paying $55 a ton.
Sorry I do not have access to this web site, but at one project the prices of our scrap were based on it. The contract stipulated that I had access to it to confirm prices by all bidders. Since that project was completed last year I have no access. I will try to get information, but no promises.
Another interesting fact you brought to light, I had DJJ and Simms bidding on the same project although I did not know they were one owned by the other. Simms had access to ports at the time and I thought DJJ was feeding them. Now I am totally confused because Simms is considered one of the industry giants.
On a side note, the more yards that shut down, the quicker return of the market. This will create more demand than supply, Economics 101. The problem is the majority of the yards that cannot survive will be in the rural part of the country that face transportation costs and that will hurt the rural scrappers.
I don't think they are the same. Just looked up DJJ and it doesn't mention SIMS. DJJ has 6 regional companies that handle US scrap. I think they article was referring to one or more of these 6 and SIMS.Quote:
Originally Posted by Patriot76
Got a 2 week trial to AMM so I could find out about this. DJJ closed 2 yards in Missouri and Simms closed 1 in Chicago. That article was from the 9th. New article today saying Simms closed a 2nd yard in Chicago.
Which 2 yards did DJJ close in Missouri ?
I think they close Holt Summit and their Linn Creek yard.
My local yard boss was telling me the other day as we were chitchatting about the conditions that Omni Source has or is going to close 6 yards here in the midwest.
Good if yards are shutting down. In a year or so, that might help to drive demand up. Less buyers, meaning the stock pile will go down.
DJJ is owned by Nucor & SIMS is still independently owned by SIMS.Quote:
Originally Posted by Patriot76
Just an FYI
Less Buyers could mean LESS PAY!Quote:
Originally Posted by jeanbean0109
The DJJ yards are in Kansas City mo. They own advantage recycling or something like that. I think they have maybe 7-9 yards in the northwest mo area. They compete against another major regional player from the Springfield mo region. I can't remember the name of them. Sims in Chicago is probably just getting crushed by pure metals/acme recycling. Darwinism is winning out. Only the strong will survive.
Those were the 2Quote:
Originally Posted by missouri
Interesting article on SIMS in AMM today.
"Sims .... will close, divest or redesign underperforming facilities as the collapse in scrap prices jeopardizes the companies ability to remain profitable."
"The majority of the changes are expected to be completed in the first half of fiscal 16 and be completed by the end of the fiscal year."
Credit to Brad MacAulay at AMM
I just sold some shred yesterday for $0.0325 a pound at a yard down here in Houston, Texas called Texas Port Recycling which is owned by DJJ and Nucor. It seemed to be bustling along just fine but it is the main yard of theirs with 3 additional feeder yards spread across the region. I doubt this one would close because they do all the shredding here and the site is located right on the ship channel so the barges fill up right there. Now the feeder yards might be candidates for shut down but I have not heard that at this time.
Simms in NewZealand is paying
NZ$0.00 for Lightgauge (US$0.00) per Ton (1000Kgs)
And NZ$100.00 for HMS (US$68.00) for per Ton
NZ$6.00 a Kg for #2 Copper
NZ$1.35 a Kg for Aluminium approx depending on grade.
NewZealands TIwai point Aluminium smelter has just announced they are to lay off some more workers.
They did make a 50 million $ profit last year. First in several years. They are one of two smelters in the world that makes top grade Aluminium. For capactors etc.