Schnitzer Steel Industries Inc, one of the largest manufacturers and exporters of recycled metal products, announced its results for the fourth quarter and financial year ending on 31 August 2022.
Fiscal 2022 results were the second-best year in the company’s history, driven by a combination of high demand for finished steel and recycled metals, increased ferrous and non-ferrous sales volumes, two acquisitions, and benefits from productivity initiatives.
Tamara Lundgren, Chairman and Chief Executive Officer, said, “I am proud of what our team has accomplished during a year of significant volatility. Our results in fiscal 2022 were the second best in the company’s history. These include our investments in advanced metal recovery technology systems, launching GRN Steel™, net zero carbon emissions products, and two acquisitions in the Southeast.”
She further said “We also delivered our strongest annual operating cash flow since fiscal 2012 and continued to return capital to shareholders through our quarterly dividend and share repurchases.”
Highlights of Q4FY22 investor conference call
- Ferrous scrap sales rise: Despite lower ferrous scrap sales prices and demand, tighter supply flows, and disruptions due to an extended metal shredder outage at the company’s Everett, MA recycling facility, the fourth quarter sales volumes increased by 12% q-o-q in Q4FY22 due to delayed shipments from Q3. Bangladesh, Turkey and India were the top export destinations in Q4.
- Non-ferrous scrap sales decline: Overall sales of non-ferrous scrap declined by 7% in Q4FY22. While domestic sales improved due to acquisitions and stronger domestic demand for recycled non-ferrous metals in FY22, sales to the overseas markets decreased. The average selling price was down by 7% in Q4 against last quarter.
- Finished steel sales drop: Finished steel sales volume in Q4FY22 dropped by 7% against Q3. The average selling price remained near to an all-time high, a marginal drop of 1% against Q3.
- EAF share in steel making to increase to 73% by 2025- New EAFs of 10 mtpa capacity are to be commissioned in USA by 2024, taking the EAF share in steelmaking to 73% in CY2025 from 69% in CY2021.
Outlook
Despite current headwinds, the company expects the long-term structural trends for recycled metal demand to remain positive, supported by the transition to low carbon technologies, the increased focus on decarbonisation, and the expected funding related to the infrastructure investment.
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