Schnitzer Steel Industries Inc, one of the largest manufacturers and exporters of recycled metal products, announced its results for the fourth quarter ended on 31 Dec’21.
The company’s Q4 sales performance was benefited from strong global demand for recycled metals. The results showed average selling prices at or near multi-year highs for ferrous, non-ferrous, and finished steel products. After re-starting its mill in Aug’21 following the mill fire outage, the sales volumes have increased sharply.
Tamara Lundgren, Chairman and Chief Executive Officer said, “This is the company’s best fourth quarter earnings with higher ferrous and non-ferrous sales volumes benefiting from our recent acquisition of 8 Columbus Recycling assets.”
Q4CY’21 highlights –
- Ferrous sales volumes rise: Sales volumes of ferrous scrap in Q4’21 went up by 9% y-o-y to 1.14 million tonnes (mn t) amid strong demand and delayed shipments from the previous quarter. The company targets to achieve 5.3 mn t of ferrous sales volume by the end of the US FY’23.
- Non-ferrous sales volume up: Sales volumes in Q4’21 were up by 11% y-o-y. The company sold scrap to 15 countries in this quarter. However, the sales volumes have yet not touched the pre-pandemic levels due to tight container availability.
- Finished steel sales down: Due to the fire and production outage at its mill in May’21, the company’s finished steel sales volumes for the quarter fell by 26%. In contrast, market selling prices for finished steel products increased, touching their highest levels. The company began ramping up production at its steel mill in Q4CY’21 with utilisation rate hitting at around 91% in Nov’21.
- EAF share in steel production to increase to 80-85% by CY’25: The US EAF market share in steelmaking is expected to rise sharply by 80-85% by CY’25 with an additional 14 mn t capacity to be announced by 2024. The US has an annual crude steel production capacity of around 75-85 mn t while its steel scrap usage stands at around 60-65 mn t.
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