| |
| Nucor steel scrap business sees medium term pick up |
|
| Code:MFN002747 Prpduct:Steel Scrap Date: 2010-07-26 |
Nucor Corporation's steel scrap processor has recently seen some improvement in its business that it expects will last for the next 2 to 3 months, helped by exports as the dollar declines.
Mr Keith Grass EVP of Nucor and also president and CEO of The David J. Joseph Co scrap operation said that "I don't see a run away bull market. Just seems to be stabilization around this range and possible strengthening as we look out the next 60 to 90 days."
Nucor's mini mill operations use scrap as a raw material to produce steel, but David J Joseph, bought by Nucor in early 2008, is also a top steel scrap processor and trader, based in Cincinnati.
Nucor executives were talking to analysts on a conference call after earlier reporting better than expected second quarter profit and sales nearly 70% greater than the year ago quarter. But the Charlotte, North Carolina based steel maker warned that the economy is in a new period of uncertainty.
Mr Grass said that during the second quarter, David J Joseph saw a drop off in its scrap operations, that he now thinks has leveled off or bottomed out. He added that "Certainly, we've seen the downward trend during the course of Q2, and we probably feel as though things have stabilized or to a degree bottomed."
He said that "We're seeing a little bit less flow into the scrap yards during the course of the past few weeks. They had been absent for 30 to 45 days in a more aggressive way. They have reentered to a degree. And from the beginning of the third quarter to now, we've sort of seen a reversal in the dollar. It started to move a bit lower."
Mr Grass said scrap prices tend to move in opposite direction to the dollar. When the US currency moves lower, scrap prices strengthen with increased demand from overseas buyers.
Mr Dan DiMicco chairman, president & CEO of Nucor said that The David J Joseph Company is expanding its scrap processing platform through both acquisition and Greenfield opportunities, pointing out the company's planned pig iron project received an environmental permit in May from the state of Louisiana. |
| |
|
|
|
|
|
|
|
| 08 Sep 2010 | | | Cash Ask | 3M Ask |
|---|
| Copper | 7620.00 | 7635.00 |
| Aluminium | 2120.50 | 2150.00 |
| Zinc | 2170.00 | 2197.00 |
| Lead | 2151.00 | 2179.00 |
| Nickel | 22450.00 | 22400.00 |
| Tin | 20980.00 | 21075.00 |
| Al.Alloy | 2230.00 | 2130.00 |
| NASAAC | 2081.00 | 2110.00 |
| Steel Billet | 506.00 | 527.00 |
| Cobalt | 41000.00 | 40700.00 |
| Molybdenum | 35300.00 | 36000.00 |
|
|
 |
|
|
|
|
2010-09-09 |
|
| PRODUCT |
BID
(US$/TON) |
ASK
(US$/TON) |
2B Coil-OCT |
3,300 |
3,380 |
No.1 Coil-OCT |
3,120 |
3,200 |
2B Coil-DEC |
3,300 |
3,380 |
No.1 Coil-DEC |
3,120 |
3,200 |
|
|
|
|
|
|
|
MetalFirst China Average:
US$16.025/lb
As of Sept. 3, 2010
(updated weekly)
MetalFirst Average:
US$16.00/lb
As of Sept. 3, 2010
(updated twice weekly)
|
|
|
|
