The capacity rate of steelworks exceeds 80%
The high price of scrap metal appears to have attracted enough material to exceed the expectations of Oregon-listed recycler, Schnitzer Steel Industries Inc.
In a June 1 filing with the Securities and Exchange Commission (SEC), the scrap metal recycling, auto salvage and electric arc furnace (EAF) steel company says it “expects its volumes to be of ferrous and finished steel sales for the third quarter will be the outlook it provided in its second quarter earnings call on April 7, 2021.
The company continues, “Ferrous volumes are now expected to be approximately 25% higher and finished steel volumes approximately 10% higher than the respective volumes reported for its second quarter of fiscal 2021.” The company’s third fiscal quarter 2021 ran from March 1 to May 31 of this year.
Regarding its margin in the scrap metal business, Schnitzer said: “For the third quarter, net profit per ferrous tonne is expected to be between the $ 47 achieved in the second quarter of fiscal 2021 and up to 5%. Furthermore “.
Good market conditions mean that “adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) per tonne of iron for the third quarter is expected to be between the $ 73 achieved for the second quarter of fiscal 2021 and through at 5% more. . “
Schnitzer also said he suffered a fire on May 22 at his Cascade steel rolling mill in McMinnville, Oregon. The company adds, “The damage caused by the incident was limited to the factory melting shop, with no injuries or impact on other buildings or equipment. Given that the incident occurred towards the end of the company’s fiscal third quarter, the company does not expect this matter to have a significant impact on its operating results for that quarter.
Regarding the damaged fusion shop, Schnitzer adds, “The company is still estimating the time required for repairs and will provide more information on this, including insurance coverage, when it is webcast and released. fiscal third quarter earnings conference call on June 30.