JUNE 17, 2015/ VOLUME 123 / NUMBER 24-3 / ESTABLISHED 1882
WWW.AMM.COM
Metalico, China recycler in
$105 million sales deal
PITTSBURGH — Metalico Inc.’s
board has agreed to sell the scrap
metal company to an investment
firm affiliated with Asian
aluminum recycler Ye Chiu Group
for about $105 million.
Under the terms of the
agreement, the Cranford,
N.J.-based recycler will become a
wholly owned subsidiary of Total
Merchant Ltd., which is controlled
by Ye Chiu Group chairman and
managing director Chung Sheng
Huang, according to Metalico.
Total Merchant has indicated
that it intends to retain Metalico’s
management and all other
personnel.
Deal at hand. Cranford, N.J.-based
metals recycler Metalico has
agreed to a sale to an investment
firm associated with China-based
aluminum recycler Ye Chiu Group.
STEEL
The sale price includes about
$44 million for Metalico’s
outstanding equity plus the cost
of retiring the company’s primary
term and institutional senior and
convertible debt, estimated at
some $45 million, as well as the
assumption of about $16 million of
additional debt as of June 15.
The acquisition is subject
to shareholder approval,
although the date for Metalico’s
shareholders to vote on the
proposed merger has not yet been
set. The transaction is expected to
close in the third quarter of 2015,
with a termination date of Sept. 21.
If approved,
PAGE 2
Aluminum group disputes steel industry data
NEW YORK — Statistics used in
full life-cycle analyses performed
by steel industry advocates
are often based on old studies,
according to an Aluminum
Transportation Group spokesman.
“We suspect that they’re using
older data,” said Doug Richman,
vice president of engineering and
technology at Kaiser Aluminum
Corp. and technical chairman of
the Aluminum Transportation
Group.
Richman accused steel
advocates of referencing data
compiled by a University of
California-Santa Barbara (UCSB)
study performed nearly 10
years ago—which evaluated
the environmental benefits of
aluminum vs. steel—instead of
making assumptions based on
data compiled more recently.
The most recent version of
the UCSB model, developed by
Roland Geyer of the Bren School
of Environmental Science and
Management and referenced in
Web posts by WorldAutoSteel, the
automotive arm of the World Steel
Association, is dated June 2014.
“Our data is not old. We’ve
spent a great deal of money and
a great deal of time to make sure
our data is accurate,” Kate Hickey,
Imports, labor contracts
vie for attention at SSS
Lee Steel assets draw
interest ahead of auction
Brokers’ stainless steel
scrap prices weaken
The official agenda of the
Steel Success Strategies XXX
Conference was focused on
imports, particularly from China,
but on the sidelines a topic that
dominated industry headlines
in the past re-emerged: labor
relations.
PAGE 5
Lee Steel Corp. has drawn interest
from multiple parties seeking to
purchase its assets, according to
the company’s legal counsel. The
service center is slated to go up for
auction next month.
Brokers’ buying prices for stainless
steel scrap have cooled down over
the past week amid further erosion
in the nickel market, even though
demand remains fairly stable.
PAGE 3
PAGE 7
Ferrous Scrap
SUPPLY CHAIN
Distributors’ stainless steel
shipments still falling
PAGE 8
Pipe, tubing under pressure,
MSCI data show
PAGE 8
Gunmaker Colt files for
Chapter 11
PAGE 9
Mexico targets trade
defense reform
PAGE 9
NONFERROUS
Rio Tinto Alcan testing
technology at Alma
PAGE 10
Eramet Marietta plant equipment
damaged by fire
PAGE 10
DLA unveils June
ferrochrome offering
PAGE 10
SCRAP
New challenges require
new look PAGE 11
Slack demand, LME bite
into aluminum scrap
PAGE 12
NUMBER OF THE DAY
1855
The year Colt’s Patent Firearms
Manufacturing Co was founded
by Samuel Colt.
PAGE 8
Aluminum
Multi-Functional Shredders
Auto Bodies • Bales • Light Iron • Aluminum • Breakage
PAGE 10
Reconsideration of Metalico
buy urged
PAGE 2
Fears of Chinese steel
oversupply mount
PAGE 5
AK Steel lifts spot sheet
prices $20/T
PAGE 7
Gerdau plans to add plate
to US portfolio: execs
PAGE 7
IT IS A VIOLATION OF AMM COPYRIGHT TO PHOTOCOPY/DISTRIBUTE THIS PRODUCT
716.391.1200
sales@wendtcorp.com
NEWS
Metalico, China
recycler in $105M
sales deal
CONTINUED FROM PAGE 1
Metalico’s shareholders will
receive 60 cents for each share of
common stock on the closing date
of the sale. Metalico’s shares closed
at 56 cents apiece on the New York
Stock Exchange June 16, up from
38 cents the previous day.
Metalico has agreed not to
solicit alternative proposals for
the acquisition of the company.
However, it can consider
unsolicited proposals pursuant to
the board’s exercise of its fiduciary
duties, with Total Merchant having
the right to match any proposal.
“Metalico’s board has been
investigating and evaluating
strategic alternatives for the
company’s future since early
January,” the company said. “The
directors selected Total Merchant’s
offer after a review of several
strategies, including continued
independence as a public
corporation, combinations or joint
ventures with suitable partners
or investors, sales of assets, and a
sale of the company, and analyses
of several bids, including both
solicited and unsolicited proposals
from competitors, industrial
concerns and strategic investors.”
Earlier this year, Metalico
received a takeover offer from
Adam Weitsman, owner of Owego,
N.Y.-based Upstate Shredding
LLC-Ben Weitsman & Son Inc., who
recently boosted his stake in the
company to become its singlelargest shareholder (amm.com,
Feb. 23).
Cranford, N.J.-based Metalico
reported a $10.9-million net loss
for the first quarter of this year as
it forecast a “very challenging year
for the company and our industry”
(amm.com, May 21).
BRAD MACAULAY
BMACAULAY@AMM.COM
Sale won’t impact operations: Metalico chief
PITTSBURGH — Metalico
Inc.’s sale to an investment
firm affiliated with Asian
aluminum recycler Ye Chiu
Group will not negatively
affect the company’s existing
relationships with suppliers and
consumers, president and chief
executive officer Carlos E. Agüero
said.
“It will be business as usual
at Metalico. Our suppliers will
be serviced by the same buyers,
drivers and local management
delivering the quality service,
reliability and honest treatment
you’ve come to expect and count
JUNE 17, 2015
on,” Agüero said in a letter to
suppliers and customers.
The $105-million merger
agreement will improve the
“financial strength and security”
of the Cranford, N.J.-based scrap
metal company, he said.
Metalico had reported a $10.9million net loss during the first
quarter of this year (amm.com,
May 21), and its board of directors
had been investigating and
evaluating strategic alternatives
since early January, according
to Agüero.
BRAD MACAULAY
BMACAULAY@AMM.COM
Reconsideration
of Metalico buy
urged
PITTSBURGH — Metalico Inc.’s
largest shareholder has urged
Asian aluminum recycler Ye Chiu
Group to re-evaulate its offer to
acquire the U.S. company.
“Based on the information
disclosed today, as Metalico’s
largest shareholder, I do not intend
to vote in favor of the proposed
merger at (60 cents) per share,
even though it is an approximately
50-percent gain on my total
investment in Metalico,” Adam
Weitsman, president and owner
of Owego, N.Y.-based Upstate
Shredding LLC-Ben Weitsman &
Son Inc., told AMM.
“I urge Chung Sheng Huang,
chairman and managing director
of Ye Chiu Group, to re-evaluate
his offer to give full value to all
Metalico shareholders,” he said.
Under the terms of the
$105-million agreement, the
Cranford, N.J.-based recycler will
become a wholly owned subsidiary
of Total Merchant Ltd., which is
controlled by Huang (see related
story, page 1).
Weitsman earlier this year
formally made a play to acquire
Metalico, his largest direct
competitor, boosting his stake in
the company to become its singlelargest shareholder (amm.com,
Feb. 23).
Weitsman had originally offered
78 cents per share in an all-cash
deal to acquire Metalico, but the
offer was amended to 46 cents
per share about one month ago, a
Metalico spokesman told AMM.
Both companies operate in the
same territory. Upstate Shredding
has 15 locations in New York and
Pennsylvania, while Metalico has
22 metals recycling facilities in
New York, Ohio and Pennsylvania.
Meanwhile, the industry shared
mixed reactions regarding the
IT IS A VIOLATION OF AMM COPYRIGHT TO PHOTOCOPY/DISTRIBUTE THIS PRODUCT
sale’s impact on the market.
“I’m shocked they were bought
by a Chinese firm,” a scrap supplier
said. “All scrap companies are
hurting and have too much bad
competition with some (scrap
companies) that don’t know what
they are doing.”
Ferrous and nonferrous scrap
market participants have faced a
challenging market so far this year,
shaken by precipitous declines
in scrap selling prices and tighter
margins.
“I do expect more Chinese
to become either buyers of
businesses or open their own,” a
second scrap supplier said.
A third supplier said he hopes
that the sale will not “play
havoc with the markets when in
transition.”
Other market participants are
looking at the prospective sale as
a potentially stabilizing factor for
the market, as opposed to other
options that would have been more
restrictive, they said.
James Lawrence, Pittsburgh,
contributed to this story.
BRAD MACAULAY
BMACAULAY@AMM.COM
AMM PAGE 2
NEWS
CONTINUED FROM PAGE 1
communications manager for
WorldAutoSteel, told AMM.
Geyer’s study was published
in 2007, said Hickey, but
WorldAutoSteel has continuously
updated the comparison
model to keep it relevant. The
biggest issue between the two
sides is methodology, with
WorldAutoSteel disagreeing that
a large portion of aluminum is
sourced from facilities using
hydroelectric power.
“I suspect we’re all using good
science in these models,” said
Richman, despite the two sides
applying different numbers in
their models.
Primary aluminum reduced
its carbon footprint by 37 percent
from 1995 to 2010, according
to a 2013 study released by the
Aluminum Association. “The
improvement in energy efficiency
and carbon footprint for primary
aluminum is partly attributed
to technological progress in
which computerized process
control has enabled less electric
power consumption during the
electrolysis process and reduced
emissions of greenhouse gases
such as carbon dioxide and PFCs,”
the Aluminum Association said
in the report, also attributing the
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JUNE 17, 2015
gains to the “gradual phase-out of
old smelting technology” as well
as decreased reliance on coal-fired
power.
Speakers at an automotive panel
during the Steel Success Strategies
XXX Conference in New York
said that aluminum’s primary
disadvantages as a material were
higher carbon emissions, recycling
difficulties and a higher per-pound
price.
“The business case for steel
is strong,” Lawrence Kavanagh,
president of the Steel Market
Development Institute, told
attendees at the conference
sponsored by AMM and World
Despite disagreements on the
comparison between the two
materials, many experts foresee a
“mixed material future.”
“Aluminum is going to play in
all of the spaces to some extent,”
David Paratore, president and
chief executive officer of NanoSteel
Co., told conference attendees.
“We’re all in this together; we
will all excel because we’re all
doing the best we can,” Richman
said. “There will be a mix (of
materials). That’s OK; that’s the
way it should be.”
KIRK MALTAIS
KIRK.MALTAIS@AMM.COM Credit: Steel Market Development Institute
Aluminum group
disputes steel
industry data
Lawrence Kavanagh
Steel Dynamics Inc., Englewood
Cliffs, N.J.
However, Richman rejected the
notion that there is far more steel
scrap available than recyclable
aluminum sheet. “Aluminum
is infinitely recyclable with no
degradation in properties,” he
said. “There is an established
and financially strong market for
recycled aluminum, and expanded
automotive use further increases
demand for recycled aluminum. “
Consumption of aluminum
in the automotive industry will
continue to see massive increases,
according to a report from Ducker
Worldwide LLC released in June
2014.
According to the report,
total light vehicle aluminum
consumption will increase in
North America by 28 percent
in 2015 over 2012, with nearly 7
billion pounds of aluminum being
consumed to build 17.46 million
vehicles this year. By 2025, 4 billion
pounds of aluminum automotive
sheet will be consumed in North
America, with 26.6 percent of all
vehicle body and closure parts
being made of aluminum.
IT IS A VIOLATION OF AMM COPYRIGHT TO PHOTOCOPY/DISTRIBUTE THIS PRODUCT
PRICING AT A GLANCE
NYMEX
Copper
Hot-rolled coil
Gold
Platinum
Silver
262.65¢
$461.00
$1,180.50
$1,079.80
1,595.80¢
LME
Aluminum
Copper
Lead
Nickel
Zinc
$1,661.00
$5,752.00
$1,791.00
$12,775.00
$2,081.50
AMM PAGE 3
LETTER FROM THE EDITOR
PDF Pricing Pages Changed To Improve Legibility
NEW YORK — AMM’ s PDF is well into its second month of being produced via a new web-first process, which I detailed in my previous letter
to readers.
I sincerely appreciate all the e-mails and calls directed to me personally or through customer service representatives expressing your
comments and concerns about the resulting changes—both positive and negative.
In direct response to your observations, we have changed the type font and spacing on the PDF pricing pages in order to improve legibility
both on screen and in printed form. On a computer you can use the magnification feature, of course, but that does not help if you print the
pages. Please take a look at the current pricing pages and let us know if the tweaks we made have improved their
readability. We are delighted to have brought you this change as quickly as possible.
In other pricing page news, please note that we endeavor to be as clear and transparent as possible when making
announcements related to (1) delisted prices, (2) price assessment date or frequency changes and (3) any other
significant pricing notes.
AMM’ s procedure for announcing delisted prices is to highlight it on the pricing pages and to send our readers a
direct e-mail for comments. We then run a reminder for those looking for a delisted price that it no longer appears
in the PDF.
Similarly, announcements concerning any change to the date or frequency of prices are highlighted, and we also
direct readers to the appropriate section of the PDF where we provide any other details. Reasons for changing a
date of a price generally occur because of market conditions. If price discovery cannot be completed in one day,
for instance, we will add a day so that the maximum number of market participants can be contacted and have
time to respond.
PLEASE NOTE: We never give less than 30 days’ notice for any change and frequently run them longer. Also, we
welcome all validated market participants to become sources and price providers.
UPCOMING CHANGES: Within a month you should see our complete updated pricing methodologies
published in full on our website. I will write another letter to readers at that time to bring it to your attention. We
are following all industry best practices and are using the principals set forth by the International Organization
of Securities Commissions as our guideline.
Within the next three months we hope to unveil a refreshed look to our web home page and, most significantly,
a completely overhauled and easier-to-use “My Prices” database.
Please be assured that there is a lot of investment going on in the background to uphold and continually improve the quality of reporting,
maintain strict compliance on pricing methodology and technological work to make your web experience more user-friendly and intuitive.
As always, we strive to be as accessible as possible. Staff stories include the name and e-mail of the author. For your convenience, the
masthead on the last page of the PDF breaks out the team leaders of our three mainstay categories: steel, nonferrous and scrap. These are
the individuals charged with coordinating the coverage and pricing for those categories.
If you’d like to reach me directly for any reason, my contact information also is published in every issue.
I plan to keep you posted on all the major improvements happening at AMM and welcome your suggestions.
Bristol Lane Voss
Editor-in-Chief
American Metal Market
JUNE 17, 2015
IT IS A VIOLATION OF AMM COPYRIGHT TO PHOTOCOPY/DISTRIBUTE THIS PRODUCT
AMM PAGE 4
Steel Success Strategies XXX
Imports, labor
contracts vie Fears of Chinese steel oversupply mount
for attention
at SSS
ANALYSIS
CHICAGO — The official agenda
of the Steel Success Strategies
XXX Conference was focused on
imports, particularly from China,
but on the sidelines a topic that
dominated industry headlines
in the past re-emerged: labor
relations.
No United Steelworkers union
officials spoke at this year’s
conference in New York, but
attendees said it’s unlikely that
mills and the USW see eye to eye
on what is needed to keep the steel
industry on its feet in the current
tough market.
“We know our industry
faces pressure from unfairly
traded imports and subsidized
products,” the USW said in a recent
newsletter. “We also know ... that
demand for steel has always been
cyclical—meaning the market will
change.”
The USW’s labor contracts
with three major steelmakers—
Allegheny Technologies Inc.,
ArcelorMittal SA and U.S. Steel
Corp.—are set to expire this year
(amm.com, May 15).
The USW’s full negotiating
committee is meeting in
Pittsburgh this week to set
strategies for negotiating
contracts for more than 13,000
hourly workers at 11 ArcelorMittal
facilities, the newsletter noted.
The steelmaker has already come
out swinging, suggesting that
more than cyclical factors are at
play and that concessions will be
necessary.
Whether a deal is reached
has big implications for any
purchasing manager because
it’s almost impossible to make
a long-term forecast when it’s
unknown whether the market will
have a surplus or a deficit in just a
few weeks, conference attendees
said. Should there be a strike or
lockout, supplies could tighten,
lead times could move out and
prices could move up significantly,
especially if a big automaker
like General Motors Co. decides
to make big hedge buys, some
attendees said.
But there also is a danger that
continued ❯
JUNE 17, 2015
LONDON — Among the sea
opposite. U.S. steel consumption
products are likely to account for
of topics discussed at the
was estimated to have increased by the biggest portion of the projected
Steel Success Strategies XXX
8 percent year on year during the
108-million-tonne total at 46
Conference in New York, AMM
first four months of this year, while
million tonnes, with 45 million
sister organization Metal Bulletin
demand in the rest of the world
tonnes accounted for by flat-rolled
Research (MBR) was struck by
was receding badly—and nowhere
products.
the intensity of what one speaker
more so than in China.
From a Chinese viewpoint, the
referred to as "China-bashing,"
China’s apparent demand is on
United States is merely the East
particularly among U.S. mills.
course to fall further, according to
Asian country’s eighth-largest
Nucor Corp. and other domestic
Brussels-based WorldSteel, which
export market. But at the Steel
U.S. steelmakers have made
forecast earlier this year that
Success Strategies conference
extraordinary improvements to
Chinese apparent steel demand
sponsored by AMM and World
their production processes and
will fall by 0.5 percent both this
Steel Dynamics Inc., it was clear
productivity since the mid-1980s,
year and next year before briefly
that producers in other locations—
when the conference was
recovering by 2020. However, MBR
such as Italy, which ranks 17th on
originally dubbed Steel Survival
steel analysts estimate that the
China’s list—also are keen to find
Strategies.
a solution to the threat
John Ferriola, chairman
posed by China’s exports.
and chief executive officer
A slew of anti-dumping
of Charlotte, N.C.-based
legislation measures
Nucor, pointed out that it
and the elimination
now takes just two man-hours
of surplus Chinese
to produce 1 ton of steel,
capacity were perceived
down from 10 man-hours 30
as the most obvious
years ago. But despite such
long-term solutions to the
advances, survival—rather
problem of steelmaking
than success—strategies
survival. However,
are very much back on the
on the issue of excess
agenda, he noted.
capacity, producers and
U.S. mills as a group were
independent analysts,
Tilting the scale. Chinese delegates asserted that any
convinced that without some reduction in the country’s steelmaking capacity would such as Englewood Cliffs,
government support for
N.J.-based World Steel
take a long time to be realized. Analysts’ estimates of
domestic steel production
China’s overcapacity range from 150 million tonnes to Dynamics, could reach no
and manufacturing, imports 600 million tonnes.
consensus on the scale of
bolstered by illegal subsidies
the problem.
would eventually replace one of
current trend shows a decline of
MBR analysts heard estimates
the country’s longest-standing
closer to 5.5 percent.
ranging from a realistic 150 million
and strategically vital industries.
Apparent demand in China for
tonnes to as much as 600 million
What steelmakers such as
flat-rolled steel products continues tonnes. However big the problem
Commercial Metals Co., Irving,
to grow from a comparatively low
actually is, Chinese delegates
Texas, found particularly stressful
level, thanks to solid if slowing
repeatedly made it clear that
was that while U.S. demand has
manufacturing activity. But
any reduction in the country’s
continued to revive over recent
the effect of clearly declining
steelmaking capacity would take a
years, U.S. producers en masse
construction activity, especially
long time to be realized.
have failed to benefit.
in new building starts, is forcing
On a different note, ClevelandIndeed, American Iron and Steel
demand for the larger varieties of
based Cliffs Natural Resources
Institute data shows that U.S. steel
long products to retreat.
Inc., until recently the fourthmill shipments, as opposed to
It is no wonder that producers
biggest miner in the world,
production, declined 9.5 percent
in China—where WorldSteel
claimed that the undervalued
year during the first four months
estimates that more than 93
price of iron ore was the real cause
of 2015 vs. a year earlier. U.S.
percent of steelmakers are
of China’s surplus steel production
production fell 8.5 percent in the
integrated, basic oxygen furnacebecause it had kept unsustainable
same comparison—a far weaker
route producers—are choosing
Chinese companies in business.
performance than in the rest of the
to bolster exports rather than to
Time will tell what effect the
world.
reduce production.
recent revival in iron ore prices
The World Steel Association
In contrast, U.S. suppliers
will have on Chinese production,
(WorldSteel) estimated last month
generally are far more flexible than
and whether MBR’s own forecasts
that steel production in the rest of
their Chinese peers, as only 37
of 1-percent growth this year will
the world, excluding the United
percent of steel production in the
come true despite a 1-percent
States, fell by just 1.4 percent
United States is integrated.
decline thus far.
compared with a year earlier.
Based on the first five months
METAL BULLETIN RESEARCH
So while production cutbacks
of this year, net exports of finished
NEWSROOM@AMM.COM
have been especially intense in
steel in China are on course to
A version of this article was
the United States, the patterns
exceed 100 million tonnes for the
first published by AMM sister
of demand have been quite the
first time. Amazingly, long steel
publication Steel First.
IT IS A VIOLATION OF AMM COPYRIGHT TO PHOTOCOPY/DISTRIBUTE THIS PRODUCT
AMM PAGE 5
STEEL
the market may be banking on
labor disruption to take the slack
out of a currently oversupplied
market, others said.
The key may be having the guts
to acknowledge that tomorrow’s
market might look very different
from today’s, former Severstal
North America Inc. chief executive
officer Saikat Dey said during a
panel discussion at the conference,
noting that he often tore up price
forecasts at his desk because
forecasts too often are based
on extending current market
conditions out for the next year
with only minor adjustments.
“Very few forecasters of market
pricing ... have the ability or the
courage to call for a dramatic
turnaround or a dramatic crash,”
Dey said.
While the impact of a strike or
lockout percolated on the sidelines
of the conference sponsored
by AMM and Englewood Cliffs,
N.J.-based World Steel Dynamics
Inc., industry executives
lambasted imports from podiums
and panels. It was a stark contrast
from 2014, when sideline talk
centered on who might buy
OAO Severstal’s U.S. mills or the
former Gallatin Steel Co. and steel
executives deftly dodged any
questions on the subject.
But familiar arguments about
imports took on a new urgency
with one big flat-rolled trade
case already filed and more
expected (amm.com, June 12),
and additional measures aimed
at strengthening U.S. trade laws
under consideration by U.S.
lawmakers (amm.com, June 12).
“We are essentially at an
economic war with imports today,”
Steel Dynamics Inc. president
and chief executive officer Mark
Millett said on the panel with Dey,
alleging that China in particular
was selling steel at below the cost
of production.
“They are destroying their own
businesses ... and they are going
to destroy the American steel
business,” Millett said, likening the
current market to the early 2000s,
when approximately 45 percent
of the domestic steel industry was
insolvent.
Paradoxically, such rhetoric
came even as many executives
noted strong activity in markets
as diverse as the auto industry and
the construction sector.
“Automotive is fantastic. ...
It’s even attracting some players
into that market who historically
haven’t been there,” AK Steel
JUNE 17, 2015
Corp. chairman, president and
chief executive officer James
L. Wainscott said, predicting
continued strength in the auto
arena through 2020.
Construction activity—while
below its $440-billion peak in
2008—has gradually rebounded to
healthy levels, Commercial Metals
Co. chairman, president and chief
executive officer Joseph Alvarado
said, although mills would be
busier and more profitable if
imports hadn’t taken such a large
share of that growing U.S. steel
demand.
And it’s not just imports that
are a concern; so is increased
domestic capacity, some
conference attendees told AMM,
pointing to one party noticeable
by its absence from the Steel
Success Strategies conference: Big
River Steel LLC, which is building
a $1.1-billion mill in Osceola, Ark.
(amm.com, March 19).
While some industry observers
said there is room for a new,
low-cost mill, others groaned
about what they saw as yet more
steel capacity in a market that
doesn’t need it.
Still, investments by U.S. mills
underscore another trend: Despite
trade cases and labor spats, the
domestic industry isn’t sitting still
but continues to move forward,
conference participants said.
MICHAEL COWDEN
MCOWDEN@AMM.COM Outokumpu
appoints Coil
Americas
president
NEW YORK — Finnish stainless
steel producer Outokumpu Oyj
has appointed Michael Williams
president of its Coil Americas
division effective July 1.
Williams most recently served
as senior vice president for
strategic planning and business
development at Pittsburgh-based
U.S. Steel Corp. He has more than
two decades of experience in the
metals industry, including 16
years at U.S. Steel and as president
and chief executive officer of
Ohio-based aluminum producer
Ormet Corp.
Calvert, Ala.-based Coil
Americas’ interim head, Jose
Ramon Salas, will resume his
position as head of Outokumpu
Mexinox SA de CV.
CARLA BRIDGLAL
CARLA.BRIDGLAL@AMM.COM Politics, MSCI
data place price
hike in doubt
CHICAGO — Steel price outlooks
have diverged as industry analysts
question whether recent efforts to
lift tags will stick.
Undermining the case for higher
prices are weaker-than-expected
May shipment and inventory
figures from the Metals Service
Center Institute (MSCI), New
York-based Wolfe Research LLC
analyst Gordon Johnson II said in a
June 16 research note.
MSCI data are a “crucial”
indicator as mills assess whether
they can negotiate higher prices
with customers, Johnson said.
But steel shipments by North
American service centers declined
in May and inventories remained
high (amm.com, June 15).
“Hot-rolled coil (HRC) prices
(as a result) are unlikely to
move above the key $500-perton ($25-per-hundredweight)
threshold,” Johnson said.
AMM’s spot assessment for hot
band firmed at $460 per ton ($23
per cwt), which is above recent
lows of $440 per ton ($22 per
cwt) but below the $500 per ton
some producers may need to be
profitable, market participants
have said.
Domestic mills have announced
price increases of $20 per ton ($1
per cwt), a move that, if effective,
would push tags to $480 per ton
($24 per cwt).
Also hurting domestic mills’
prospects was Trade Promotion
Authority (TPA) legislation
failing to pass in the House
of Representatives last week,
Johnson said. That could
jeopardize the chances of the
Leveling the Playing Field Act
(LTPA)—attached to a separate
Customs bill (amm.com, June 12)—
being put into action, he said.
The LTPA, intended to make
it easier for domestic mills to
file trade cases, “will likely not
pass if the TPA is ultimately not
approved,” Johnson said.
U.S. mills have already filed
a trade case on coated steel,
but additional cases on other
flat-rolled products, including
both hot-rolled and cold-rolled
IT IS A VIOLATION OF AMM COPYRIGHT TO PHOTOCOPY/DISTRIBUTE THIS PRODUCT
coil, are said to be in the works.
The coated trade case, as well as
rising scrap prices, should allow
mills to “consolidate gains and
continue positive momentum” on
the price front, New York-based
Morgan Stanley Equity Research
analyst Evan Kurtz said in a June
14 research note.
The U.S. is hardly alone in
taking action against imports,
with Mexico and the European
Union also filing or mulling
petitions, Kurtz said. “We expect
global reactions to high levels of
Chinese steel exports to continue
to intensify.”
Closer to home, increased scrap
tags are bolstering the sheet price
hike, Kurtz said. “We believe
higher scrap costs will support
rising steel prices as mills move to
protect metal margins.”
MICHAEL COWDEN
MCOWDEN@AMM.COM Carpenter testing
new aero-grade
stainless steel
NEW YORK — Carpenter
Technology Corp. is testing a new
corrosion-resistant, high-strength
precipitation-hardenable stainless
steel for aircraft landing gear.
CarTech Custom 565 alloy
combines properties of the
Wyomissing, Pa.-based company’s
Custom 465 and 475 alloys to form
a new material that could replace
its CarTech 300M alloy steel
currently used in aircraft landing
gear, structural components, drive
shafts and actuators, the company
said June 16.
There are no plans to
discontinue 300M production, a
company spokesman said, noting
that the Custom 565 alloy will be
more expensive to produce than
the 300M alloy.
The company is working with “a
major aerospace manufacturer” to
test the new alloy, Carpenter said,
but the spokesman declined to
identify the manufacturer. Testing
of the new alloy is expected to take
up to 18 months to complete.
The potential for the new alloy
to become the industry choice for
specific aerospace applications
was “excellent,” Carpenter
chairman, president and chief
executive Gregory A. Pratt said in a
statement.
“Our goal was to modify the
continued ❯
AMM PAGE 6
STEEL
properties (of Custom 465 and 475
alloys) to yield a much stronger
alloy that also contains the
corrosion-resistant properties the
aerospace industry demands,” he
said.
CARLA BRIDGLAL
CARLA.BRIDGLAL@AMM.COM
AK Steel lifts
spot sheet prices
$20/T
CHICAGO — AK Steel Corp.
has raised spot base prices for
all carbon flat-rolled steel products
by a minimum of $20 per ton ($1
per hundredweight) effective
immediately with all new orders,
the company said.
The West Chester, Ohio-based
steelmaker’s move follows
similar increases by other
domestic steelmakers last
week (amm.com, June 12).
Gerdau plans to
add plate to US
portfolio: execs
NEW YORK — Gerdau SA will
add steel plate to its U.S. product
offerings once a plate mill
expansion at its steelmaking
complex in Ouro Branco, Brazil, is
completed in late 2016, according
to top company executives.
“Eventually we’ll probably see
plate produced in Ouro Branco
brought to the United States,
and that will become part of our
product portfolio. But we have
no plans for production of flat
products in the United States,”
Peter Campo, president of Gerdau’s
Tampa, Fla.-based Gerdau Long
Steel North America subsidiary,
told AMM June 12.
Ouro Branco is the Porto Alegre,
Brazil-based company’s largest
integrated steelmaking facility,
and the existing flat-rolled portion
of the complex—an 800,000tonne capacity hot-strip mill that
started up in October 2013—has
been “doing quite well even in
a down market,” Gerdau chief
executive officer André Gerdau
US raw steel production increases 1.5 percent
NEW YORK — U.S. raw steel
output totaled an estimated
1,747,000 net tons last week, up 1.5
percent from 1,722,000 tons the
previous week, as mills operated
at an average capacity utilization
rate of 73.9 percent.
In the corresponding week last
year, mills produced 1,889,000
tons at an average capacity
utilization rate of 78.5 percent,
according to the American Iron
and Steel Institute, Washington.
Mills have produced 40,111,000
tons so far this year at an average
capacity utilization rate of 72.4
percent, down 7.3 percent from
43,283,000 tons at an average
capacity utilization rate of 77.3
percent in the same period last year.
STEEL OUTPUT
Week ended
Jan. 3
Jan. 10
Jan. 17
Jan. 24
Jan. 31
Feb. 7
Feb. 14
Feb. 21
Feb. 28
March 7
March 14
March 21
March 28
April 4
April 11
April 18
April 25
May 2
May 9
JUNE 17, 2015
Net tons in
thousands
1,857
1,899
1,806
1,825
1,782
1,769
1,760
1,716
1,657
1,645
1,623
1,639
1,628
1,600
1,621
1,655
1,707
1,712
1,665
Capacity
utilization
77.2
79.0
75.1
75.9
75.4
74.8
74.4
72.6
70.1
69.6
68.7
69.3
68.9
67.7
68.6
70.0
72.2
72.4
70.4
Net tons in
thousands
1,705
1,732
1,700
1,722
1,747
40,111
43,283
Week ended
May 16
May 23
May 30
June 6
June 13
Year to date*
Year ago to date*
Capacity
utilization
72.1
73.3
71.9
72.8
73.9
72.4
77.3
Johannpeter said.
“It should be a very important
mix of products. We’ll have
structurals, wire rod, hot-rolled
coil and plate at that mill” once
the plate expansion, previously
reported to be in the range of 1.1
million tonnes, is complete, he
added.
THORSTEN SCHIER
TSCHIER@AMM.COM
Mexico’s crude
steel output
declines
SÃO PAULO — Mexico’s crude
steel production fell to 6.08 million
tonnes in the first four months of
the year, down 6.6 percent from the
same period last year, according
to national steel association
Canacero.
Meanwhile, the country’s
apparent steel consumption
jumped 13.2 percent during the
period as a result of increased
import volumes.
Mexico’s steel product imports
totaled 4.45 million tonnes in the
January-to-April period, up 15.2
percent from 3.86 million tonnes a
year earlier. Finished steel consumption
comprised 34.3 percent of Mexico’s
imports, up 31.1 percent in the
same comparison.
Mexico’s intake of Chinese
steel more than doubled in the first
four months, while South Korean
deliveries rose 70.3 percent from
the same period last year.
Mexican steel exports saw a
29.3-percent year-on-year drop in
the January-to-April period.
Mexico City-based Canacero
did not disclose export and
consumption volumes.
FELIPE PERONI
NEWSROOM@AMM.COM
A version of this article was
first published by AMM sister
publication Steel First.
* Reflects AISI adjustments.
STEEL PRODUCTION BY DISTRICTS
(in thousands of net tons)
Northeast
Great Lakes
Midwest
Southern
Western
Total
June 13
228
621
213
599
86
1,747
June 6
226
593
214
602
87
1,722
May 30
223
631
213
553
80
1,700
Source: American Iron and Steel Institute.
IT IS A VIOLATION OF AMM COPYRIGHT TO PHOTOCOPY/DISTRIBUTE THIS PRODUCT
AMM PAGE 7
SUPPLY CHAIN
Lee Steel
assets draw
interest
ahead of
auction
NEW YORK — Lee Steel Corp.
has drawn interest from multiple
parties seeking to purchase its
assets, according to the company’s
legal counsel. The service center is
slated to go up for auction next
month.
“We have received a number
of interest and anticipate that
there will be more indications of
interest coming our way,” Stephen
M. Gross, an attorney at McDonald
Hopkins PLC in Bloomfield Hills,
Mich., told AMM June 16.
There were six indications
of interest as of June 15, but the
company has talked with about
50 interested parties, Gross said,
noting that interested buyers
include other service centers,
other players in the steel industry
and companies with financial
interest in the sector.
The start of bidding procedures
was ordered ahead of a scheduled
Aug. 11 auction of Novi, Mich.based Lee Steel’s assets, including
the possible sale of its Romulus,
Mich., and Wyoming, Mich.,
facilities. A sale hearing will be
held the following day, according
to a filing last week in U.S.
Bankruptcy Court in southern
Michigan.
“The purchased assets include
all tangible and intangible
assets and personal property
owned by debtors and used to
operate and conduct the debtors’
business operations as a whole, or
alternatively may consist of the
assets used to operate and conduct
debtors’ business operations
from the Romulus facility or the
Wyoming facility individually,”
according to the court document. The company is also seeking a
“stalking horse” bidder, including
for its inventory and possibly some
assets at its headquarters.
Once a stalking horse bidder is
chosen, Lee Steel will inform all
other interested parties and formal
bidding for the company’s assets
will commence. The stalking horse
purchase must close on or before
Aug. 28.
JUNE 17, 2015
Lee Steel did not answer its
phone, and restructuring officer
Laura Marcero, managing director
of Huron Consulting Group Inc.,
did not respond to a request for
comment.
Lee Steel filed for Chapter
11 bankruptcy protection in
mid-April, citing a collapse in steel
prices (amm.com, April 15).
The company offers slitting
and blanking services, along
with a range of flat-rolled steel
products it sells to the automotive,
agricultural, defense, industrial
and construction industries.
EMILIA DAVID
EMILIA.DAVID@AMM.COM
Distributors’
stainless steel
shipments still
falling
NEW YORK — Stainless steel
distributors’ shipments continue
to slide, with low nickel prices
seemingly dictating demand and
keeping service center buyers and
their customers on the sidelines,
according to market sources.
Stainless steel shipments from
distributors totaled 153,100 tons
in May, down nearly 5 percent
from 161,100 tons in April and 8.8
percent below the 167,900 tons
shipped in the same month last
year, according to data from the
Metal Service Center Institute
(MSCI).
Conversely, stainless steel
inventories of 546,000 tons
(3.6 months’ supply at current
shipping levels) in May rose 2.5
percent from 532,900 tons (3.3
months’ supply) the prior month
and exceed by 15.1 percent the
year-earlier 474,300 tons (2.8
months’ supply).
But market participants are
hoping that nickel prices, which
have been falling for the past week,
will soon find some stability.
The three-month nickel
contract closed the official session
on the London Metal Exchange
at $12,800 per tonne ($5.81 per
pound) Tuesday, down 5.7 percent
from $13,575 per tonne ($6.16 per
pound) one week earlier and 17.6
percent below this year’s peak
of $15,540 per tonne ($7.05 per
pound) on Jan. 7.
“We’re hoping the price
stabilizes and improves soon; if it
stabilizes at least, it will be better
than the last six to nine months,”
one East Coast distributor source
said. Market demand has been flat,
but 2015 has not been a bad year
overall for demand, he added.
“It’s just kind of blah out there,”
a Midwest distributor source said.
“If companies felt their long-term
interests were best served by extra
investments, they would do it,
but right now there’s just not that
urgency to change production. It’s
project by project. People are fixing
and repairing things rather doing a
complete overhaul.”
Easier access to pricing
information also seems to be
influencing how customers are
buying. “People are becoming
much more market savvy. People
know the price of nickel would
change the price of stainless steel;
there have been a couple of spikes
in nickel prices, but that hasn’t
changed demand much, either,”
the Midwest distributor said. “I
don’t know if lack of demand is
completely based on (stainless
steel) prices or that people are
actively involved in buying
stainless steel, so they know where
the price (of components) comes
from.”
CARLA BRIDGLAL
CARLA.BRIDGLAL@AMM.COM
Pipe, tubing under
pressure, MSCI
data show
NEW YORK — U.S. distributors’
shipments of carbon steel pipe
and tube plummeted in May as
inventories rose, reflecting softer
market conditions.
“Demand is down a little bit.
Everything was pretty strong
through April, and then things
took a step down,” one Midwest
distributor source said.
However, he added that the
sharp drop in shipments last
month could be largely reflective
of tough market conditions in
energy tubulars, where demand
has plummeted following
a collapse in oil prices.
“Although (the) HSS (hollow
structural sections) and standard
pipe business is slow, it isn’t as bad
as the products used in the energy
market,” a mid-Atlantic distributor
source agreed. “Both HSS and
standard pipe are used as is or
fabricated into sections that are
used in construction. Construction
is not booming, but nevertheless it
IT IS A VIOLATION OF AMM COPYRIGHT TO PHOTOCOPY/DISTRIBUTE THIS PRODUCT
is an improving market.”
U.S. distributors’ carbon pipe
and tubing shipments totaled
204,900 tons last month, down 8.4
percent from 223,700 tons in April
and 15.3 percent below the 241,800
tons shipped in May 2014,
according to the latest data from
the Metals Service Center Institute
(MSCI).
Carbon pipe and tubing
inventories at U.S. service centers
stood at 692,700 tons (3.4 months’
supply at current shipping
rates), up 2.6 percent from 674,900
tons (3 months’ supply) the
previous month and 3.6 percent
above 668,900 tons (2.8 months’
supply) a year earlier.
Canadian distributors’ carbon
pipe and tubing shipments totaled
47,800 tons in May, down 0.6
percent from 48,100 tons in April
and 13.4 percent below the 55,200
tons shipped in the same month
last year. Inventories of 137,400
tons (2.9 months’ supply) were
down 3.7 percent from 142,700 tons
(3 months’ supply) in April and fell
7.3 percent from 148,200 tons (2.7
months’ supply) in May 2014. In the first five months of the
year, U.S. distributors shipped
1.11 million tons of carbon pipe
and tubing, down 5.5 percent
from 1.17 million tons a year earlier,
while Canadian service centers
saw shipments fall 8.2 percent
to 241,400 tons from 263,100 tons
in the same comparison.
THORSTEN SCHIER
TSCHIER@AMM.COM
UTC to shed
helicopter unit
Sikorsky
NEW YORK — United
Technologies Corp. plans to
exit the helicopter business by
spinning off or selling its Sikorsky
Aircraft Corp. unit.
Spinning off Sikorsky—
one of the oldest helicopter
manufacturers in the country—
was explored by Hartford,
Conn.-based United Technologies
executives as early as March
(amm.com, March 12).
“Our strategic review has
confirmed that exiting the
helicopter business is the best path
forward for United Technologies,”
president and chief executive
officer Gregory Hayes said in a
statement.
continued ❯
AMM PAGE 8
SUPPLY CHAIN
Hayes said in a June 15 investor
conference in Paris, broadcast
on the company’s website, that
Sikorsky “is a platform company
different from the rest of our
businesses.” United Technologies
produces aerospace components
and building and industrial
systems such as elevators. It also
operates aircraft engine builder
Pratt & Whitney.
The company, which has
been operating Sikorsky since
the 1920s, will announce by the
end of the third quarter whether
Sikorsky—which primarily serves
the military sector but also makes
helicopters for commercial use—
will be spun off or sold.
By separating, both United
Technologies and Sikorsky will
be able to focus on their core
businesses, Hayes said. “Sikorsky
has a great future.”
Sikorsky president Robert
Leduc said during the investor
conference that ahead of a sale
or spin-off announcement the
company will scale back its
manufacturing footprint to save
on costs.
Sikorsky, the manufacturer
of the Black Hawk helicopter, is
based on Stratford, Conn. It has
manufacturing and assembly
facilities in several states as well as
in Mielec, Poland.
EMILIA DAVID
EMILIA.DAVID@AMM.COM
Johnson Controls
appoints
corporate
development exec
PITTSBURGH — Johnson Controls
Inc. has appointed Greg Guyett
executive vice president of
corporate development effective
Aug. 10.
He will be responsible for
maintaining and developing
relationships with external
financial advisory firms, leading
merger and acquisition activities,
and working with the businesses
on growth initiatives for the
Milwaukee-based company.
Guyett most recently served as
head of investment banking, Asia
Pacific, for New York-based JP
Morgan Securities LLC. He served
as a senior banker earlier in his
career, advising industrial and
automotive companies.
Meanwhile, Johnson Controls is
JUNE 17, 2015
mulling the sale of its automotive
business in order to focus on its key
businesses, although a divestiture
would not include its lead battery
operations (amm.com, June 11).
BRAD MACAULAY
BMACAULAY@AMM.COM Gunmaker Colt
files for Chapter 11
NEW YORK — Legendary gun
manufacturer Colt Defense
LLC has filed for bankruptcy
protection, a move that will
allow an accelerated sale of its
business operations.
The West Hartford, Conn.based company and affiliates,
including Colt Holding Co. LLC
and Colt’s Manufacturing Co. LLC,
filed a Chapter 11 petition in U.S.
Bankruptcy Court in Delaware and
intends to petition the Canadian
courts for bankruptcy protection
of its Canadian operations
under the Companies’ Creditors
Arrangement Act.
New York-based Sciens Capital
Management LLC has agreed to
purchase all of Colt’s assets and
liabilities as a “stalking horse
bidder” unless a better offer
emerges, according to court
documents.
Colt Defense is asking the
bankruptcy court to approve $20
million in debtor-in-possession
financing to continue its
operations.
Colt Defense and its affiliates
listed assets and liabilities of
between $100 million and $500
million. Its largest creditors
include Ontario-based Schmid
Tool & Engineering Inc. (owed
$478,066), Southport, Conn.-based
Superior Plating Co. ($404,200),
Southington, Conn.-based Light
Metals Coloring Co. Inc. ($360,967)
and Agawam, Mass.-based Pioneer
Tool Supply Co. Inc. ($350,967).
Earle M Jorgensen Canada, an
affiliate of service center Reliance
Steel & Aluminum Co., and several
fabricators and toll processors also
are listed as creditors.
The company was founded
as Colt’s Patent Firearms
Manufacturing Co. by Samuel Colt
in 1855. It split its firearms business
in 2002, with Colt Defense serving
law enforcement and the military
and Colt’s Manufacturing making
guns for the civilian market.
EMILIA DAVID
EMILIA.DAVID@AMM.COM Mexico targets
trade defense
reform
SÃO PAULO — Mexico plans to
update its domestic trade defense
legislation.
The economy secretariat
and the country’s industrial
chamber, Concamin, will review
the framework on unfair trade
practices and “update it in line
with international trade realities
and bring it into line with what our
trading partners are doing,” the
secretariat said.
The decision followed a
meeting with economy secretary
Ildefonso Guajardo Villarreal and
representatives from Mexican
steel association Canacero to
exchange views on the overall
situation in the steel industry and
the measures that the government
has taken to protect the sector.
“(The economy secretariat) is
working with Canacero to analyze
the current (market) situation
and address (existing issues) in a
coordinated way,” Villarreal said.
The secretariat has designed
a plan to mitigate the effects of
unfair trade practices on the most
sensitive products manufactured
by the Mexican steel industry, such
as slab, plate and hot-rolled and
cold-rolled sheet.
The trade defense program
includes the implementation
of anti-dumping and
anti-circumvention measures,
ratification of existing duties and
new investigations into unfair
imports. The secretariat also
is working in partnership with
Mexico’s tax administration
service to fight duty
circumvention.
Mexico last week imposed
a provisional anti-dumping
duty on imports of hot-rolled
coil from China, France and
Germany (amm.com, June 12),
and it is undertaking seven other
investigations into steel imports.
ANA PAULA CAMARGO
NEWSROOM@AMM.COM
A version of this article was
first published by AMM sister
publication Steel First.
IT IS A VIOLATION OF AMM COPYRIGHT TO PHOTOCOPY/DISTRIBUTE THIS PRODUCT
AMM PAGE 9
NONFERROUS
Rio Tinto
Alcan testing
technology at
Alma
NEW YORK — Rio Tinto Alcan
Inc. has launched a research and
development project to test the use
of high amperage in electrolysis
at its Alma aluminum smelter in
Saguenay, Quebec, which could
increase production capacity
without an investment in new
equipment.
The AP44 smelting technology
will be an upgrade from the
AP30 technology at the smelter,
effectively allowing cells to operate
at 440,000 amperes instead of
300,000 amperes, the company
said.
“We’re testing five pots for
the AP44 technology,” Claudine
Gagnon, senior media relations
advisor for Montreal-based Rio
Tinto Alcan, told AMM.
If the technology were to be
deployed in all of the smelter’s 432
cells, it could possibly boost the
production capacity of the facility
to 550,000 tonnes from 438,000
tonnes currently, media relations
director Bryan Tucker said. “We’re
trying to make the cells more
productive in a cost-effective way.”
The upgrade to AP44 technology
is part of the company’s effort
to update existing technology
instead of installing brand-new
equipment at smelting facilities,
Tucker said.
“We’re testing it in this plant
because of its demonstrated
stability,” he said. “The overall goal
of this is to push productivity at
our smelters.”
The testing, scheduled to
last one year, is expected to
cost the company Canadian $12
million ($9.75 million). It is being
conducted by Rio Tinto Alcan’s
aluminum technology teams at the
Arvida Research and Development
Centre in Saguenay.
Rio Tinto Alcan operates about
6,000 cells worldwide using AP30
technology, Tucker said. The Alma
facility is one of eight smelters it
operates in Canada.
KIRK MALTAIS
KIRK.MALTAIS@AMM.COM JUNE 17, 2015
Eramet Marietta
plant equipment
damaged by fire
NEW YORK — Eramet Marietta
Inc. is assessing whether fire
damage to crushing equipment
at its Marietta, Ohio, facility will
affect shipments, although the
manganese alloy plant’s furnace is
continuing to operate.
There were no injuries in the
June 15 blaze, a Marietta Fire
Department spokesman told
AMM.
“Furnace production continues
as usual, while the extent of
damage and ability to operate
crushing equipment is currently
still under assessment,” an Eramet
Marietta spokeswoman told
AMM via e-mail June 15. “It’s very
early still. The impact, if any, on
shipments to customers will only
be known after we fully assess
the extent of the damage and
our ability to repair/operate the
crushing equipment.”
The Marietta Fire Department
spokesman said that the cause
of the blaze was still being
determined.
DANIEL FITZGERALD
DFITZGERALD@AMM.COM New Mexico
copper rules
review sought
NEW YORK — New Mexico’s
attorney general and
environmentalists are challenging
an appellate court’s decision
upholding regulations that govern
groundwater pollution at copper
mining operations.
New Mexico attorney general
Hector Balderas, a former chief of
the groundwater quality bureau
at the New Mexico Environment
Department (NMED), and
environmental groups, including
Amigos Bravos filed a petition with
the New Mexico Supreme Court
seeking a reversal of a lower court
ruling allowing the regulations,
collectively known as the Copper
Mine Rule (amm.com, April 13).
The disagreement centers on
what the law means by “places
of withdrawal” when meeting
water quality standards, NMED
secretary Ryan Flynn told AMM
June 16. The NMED supports the
Copper Mine Rule.
“The legislature decided you
measure the impacts (of water
pollution) at places of withdrawal
for present or reasonably
perceived future use—that is the
key issue that has been litigated
over and over,” Flynn said. “What
we’ve said is that you measure
points of compliance as close as
practical to the (mining) operation.
... What the opponents are saying
is that any place underlain
by groundwater is a place of
withdrawal.”
But “the rule circumvents the
fundamental requirement of the
Water Quality Act by arbitrarily
excluding large areas at copper
mines from being ‘places of
withdrawal,’ thus permitting these
mines to pollute groundwater for
hundreds of years,” according to
Amigos Bravos.
The Copper Mine Rule “creates
sacrifice zones for pollution,”
Amigos Bravos interim executive
director and projects director
Rachel Conn told AMM. “The rule
is contrary to the New Mexico
Water Quality Act. ... We believe
the old rules would be more
protective of groundwater ... when
copper mines were regulated
under general groundwater
regulations.”
Conn said that an industryspecific rule like the Copper Mine
Rule “could be very helpful”
for protecting groundwater
and providing more regulatory
certainty for the industry, but “we
need a rule that complies with New
Mexico water quality standards.”
However, requiring compliance
with the Water Quality Act at any
place underlain by groundwater
is “too rigid,” Flynn said. “You
could literally not operate a mine
under that position. No other state
with open-pit mining takes that
position. ... You’re not going to
require someone to comply with
drinking water standards in the
middle of an open-pit mine.”
The state’s copper industry
“would suffer dramatically”
if the New Mexico Supreme
Court overturns the previous
ruling because of the regulatory
uncertainty it would cause,
Flynn said. “It wouldn’t be a
smart investment for FreeportMcMoRan (Inc.) to continue to
allocate capital into a jurisdiction
where there’s no certainty they’d
be able to operate.”
Phoenix-based FreeportMcMoran, which operates five
copper mines in New Mexico,
declined to comment.
GRACE LAVIGNE
GRACE.LAVIGNE@AMM.COM
DLA unveils June
ferrochrome
offering
NEW YORK — DLA Strategic
Materials is offering 4,000 tons
of high-carbon ferrochrome and
1,400 tons of low-carbon material
for sale in June.
The low-carbon offering
consists of a 700-ton lot of
0.13-percent-carbon ferrochrome
and a 700-ton lot of 0.15-percent
ferrochrome. All the material is
domestically sourced and located
at the agency’s Point Pleasant,
W.Va., depot.
AMM’s current price assessment
of high-carbon ferrochrome is
$1.08 to $1.10 per pound, while the
assessment of 0.15-percent-carbon
ferrochrome ranges from $2.04 to
$2.07 per pound.
The Fort Belvoir, Va.-based
agency sold nearly 4,300 short tons
of ferrochrome in May to David
J. Joseph Co., Varomet Corp. and
Veritas Alloys & Metals LLC for a
combined $5.47 million (amm.com,
June 9).
DANIEL FITZGERALD
DFITZGERALD@AMM.COM MARKET PRICES
Prices are in cents per pound except as otherwise noted.
AMM Free Market
Copper cathode
Zinc
Aluminum
Lead
Nickel, melting
Nickel, plating
Comex copper settlement
No. 2 copper scrap
Silver, Handy and Harman (¢/troy oz)
June 16
268.40-268.90
101.88-102.38
83.76-84.01
91.20-93.20
597.14-602.14
639.14-644.14
262.65
241.50*
1,597.50
Revised
06/16/15
06/16/15
06/16/15
06/16/15
06/16/15
06/16/15
06/16/15
06/09/15
06/16/15
Prior Price
271.65-272.15
102.06-102.56
83.83-84.08
91.86-93.86
595.32-600.32
637.32-642.32
265.90
241.50*
1,620.00
* Nominal for spot sales
IT IS A VIOLATION OF AMM COPYRIGHT TO PHOTOCOPY/DISTRIBUTE THIS PRODUCT
AMM PAGE 10
NONFERROUS
Global Tungsten
acquiring Tikomet
LONDON — Global Tungsten
& Powders Corp. (GTP) plans
to acquire Finnish hard metal
recycling company Tikomet Oy for
an undisclosed sum.
Towanda, Pa.-based Global
Tungsten is the tungsten powders
division of Austria’s Plansee
Group, while Tikomet is a producer
of reclaimed hard metal powders.
“The acquisition of Tikomet
is a perfect strategic fit for us,”
Global Tungsten president and
chief executive officer Andreas
Lackner said. “While GTP uses a
chemical recycling process of hard
metal, Tikomet has developed a
recycling technology based on the
zinc recycling process, which is
economical and environmentally
friendly.”
The transaction is pending
approval by relevant authorities,
Global Tungsten said.
CLAIRE HACK
NEWSROOM@AMM.COM
A version of this article was
first published by AMM sister
publication Metal Bulletin.
Imperial Metals
gets permit for
copper mine
NEW YORK — Imperial
Metals Corp. has received an
environmental permit for its
Red Chris copper mine in British
Columbia, allowing the facility to
operate on a continual basis.
The Ministry of
Environment last week amended a
previous short-term authorization
granted to Red Chris Development
Co. Ltd., a wholly owned
subsidiary of Imperial Metals.
The change will allow the mine to
discharge tailings into a tailings
storage facility and discharge
water from the tailings storage
facility subject to the conditions
of the permit, including water
quality guidelines, under the
British Columbia Environmental
Management Act (EMA).
“The amended EMA permit is an
important milestone for Red Chris
as it ensures the mine can operate
on a continuous basis subject to
the conditions of the permit,”
according to Vancouver, British
Columbia-based Imperial Metals.
JUNE 17, 2015
SCRAP
However, “uncertainty
remains with respect to the
time line for the ramp-up of Red
Chris with the extension of the
project completion deadline
currently under negotiation,”
Aleksandra (Sasha) Bukacheva, a
mining research analyst at New
York-based BMO Capital Markets
Corp., said in a research note.
Imperial Metals’ lenders this
month agreed to temporarily
extend the deadline for the full
ramp-up of Red Chris to July 15
(amm.com, June 2) after delays in
production put the company at
risk of defaulting on its loan.
“We should have a formal
extension hopefully by the end
of this month,” Gordon Keevil,
Imperial Metals’ vice president
of corporate development, told
AMM. “We’re certainly hoping
(to reach full ramp-up) by the
end of this year at the latest, and
hopefully by the third quarter.”
Red Chris started copper
concentrate production in
February (amm.com, Feb. 18),
trucking its first shipment of
copper concentrate in March to the
Port of Stewart, British Columbia.
Meanwhile, Imperial Metals is
still waiting on its application to
restart Mount Polley operations,
which were halted after a tailings
dam breach in August.
Two reports on the Mount
Polley breach—one from the
British Columbia Chief Inspector
of Mines and another from
Fisheries and Oceans Canada and
the British Columbia Ministry of
Environment—were originally
expected to be published in
June but are now likely delayed,
according to Keevil.
GRACE LAVIGNE
GRACE.LAVIGNE@AMM.COM
Brokers’
stainless steel
scrap prices
weaken
PITTSBURGH — Brokers’ buying
prices for stainless steel scrap have
cooled down over the past week
amid further erosion in the nickel
market, even though demand
remains fairly stable.
“Prices are very sloppy, and
everyone is trying to drop numbers
a few cents,” one stainless scrap
processor source said. “We are not
selling in this market and plan to
hold our specialty steel products.
We just hope we have the room to
store it all.”
Europe continues to have
increased demand and a persistent
shortage of material, one source
noted.
“Export to Europe should help,
but it is hard to tell if it is having
much impact right now,” a dealer
on the East Coast added.
A dealer in the Gulf Coast
region indicated that buying has
been fairly aggressive for 304
stainless solids, which could be
due to some offshore interest.
For the nickel-bearing austenitic
grades, AMM’s assessment of
broker/processor buying prices
for Type 304 stainless steel scrap
solids slipped to $1,210 to $1,300
per gross ton from $1,255 to $1,300
per ton previously. Type 316
stainless steel scrap solids have
been reported as very weak on
the demand side, with pricing
assessed at $1,590 to $1,700 per ton
compared with the prior range of
$1,610 to $1,700 per ton. Bucking
the trend, Type 304 turnings rose
on the high end to a range of $1,030
to $1,140 per ton from $1,030 to
$1,100 per ton previously.
Broker buying prices for the
ferritic grades also generally
weakened, with Type 409 stainless
steel scrap solids assessed at $225
to $335 per ton vs. $270 to $360
per ton previously and Type
430 turnings at $180 to $245
per ton compared with $200 to
continued ❯
THE VIEW
New challenges require new look
who assume these costs
We are all pretty good at
might not be a survivor in
identifying the problems, but
today’s modern world of
finding the solution, the right
supply chain management.
solution, is like a magic trick.
Maybe we need to start a
We all have a tendency to
new movement called “you
rely on history to solve many
pay management” or “supply
of our daily business
cost control management,”
problems. “We’ve always
where inventory value has a
done it this way,” one scrap
industry veteran said. “We
James Lawrence surcharge attached to it over
a period of holding time.
tried that and it didn’t work,”
The point is that inventory costs are
another added.
a huge part of the cost of doing
What might have worked yesterday
might not be the solution for today, and business. Having control and truly
managing inventory is a critical part of
what did not work yesterday might
cost reduction and is often an
work today. We are all on the same
overlooked part of the business. We
journey: How can we make money and
can no longer rely on the market to
be successful in these difficult times?
turn losses into profits.
The solution? There are many
Manage using reality. Don’t be a
answers, but one that I think needs
dreamer! And certainly don’t rely on “It
special attention is inventory control.
always worked in the past!”
Supply chain management, just-inMeeting new challenges requires a
time delivery, cash flow are just a few
new look. So, carpe diem.
of the terms we hear every day, but
"But If you listen real close, you can
living them is another matter.
hear them whisper their legacy to you. Go
While the tonnages might remain
on, lean in. Listen, you hear it?—Carpe—
constant, the value of today’s
inventory costs are triple or more what hear it?—Carpe, carpe diem, seize the
day, boys. Make your lives extraordinary."
they used to be. Consumers rely on
—Dead Poets Society (1989)
suppliers to accept these new
James Lawrence is a scrap reporter
standards and demand raw materials
in AMM’s Pittsburgh office. He can be
be available at a moment’s notice. All
reached at jlawrence@amm.com.
of this comes with a cost, and those
IT IS A VIOLATION OF AMM COPYRIGHT TO PHOTOCOPY/DISTRIBUTE THIS PRODUCT
AMM PAGE 11
SCRAP
Slack demand,
LME bite into
aluminum scrap
$270 per ton. Meanwhile, Type
430 stainless steel scrap solids
remained unchanged at $290
to $380 per ton, while Type 409
turnings moved into a wider range
of $155 to $270 per ton from $180 to
$225 per ton previously.
“We feel that with the lower
nickel prices and a dropping
average, we really need to be
buying at lower prices,” one major
processor source said. “It appears
that nickel is dropping back to
where it was at the beginning of the
month.”
The cash nickel price on the
London Metal Exchange ended the
official session at $12,775 per tonne
($5.79 per pound) June 16, down
5.6 percent from $13,530 per tonne
($6.14 per pound) a week earlier.
JAMES LAWRENCE
JLAWRENCE@AMM.COM
PITTSBURGH — Aluminum scrap
prices are feeling the weight of
tumbling primary metal prices and
weak demand, as some tags drifted
lower this week despite persistent
reports of slower inbound flows
into dealers’ yards.
AMM’s assessment of old
sheet prices fell by a penny to
56 to 58 cents per pound, with
twitch following at 71 to 73 cents
per pound.
A combination of primary
aluminum price declines on
the London Metal Exchange
and recent weakness in some
secondary aluminum alloy tags are
putting pressure on smelter
scrap, a secondary aluminum
consumer source told AMM.
AMM’s price assessment of
A380.1 alloy fell 1 cent on the high
end to 94 to 95 cents per pound
as increased competition for
business and ample material on
hand pushed prices lower.
The LME’s three-month
aluminum contract ended the
official session at $1,702 per tonne
(77.2 cents per pound) June 16,
down 2 percent from $1,737.50
per tonne (78.8 cents per pound)
June 11.
“I had expected us to maybe
inch up prices, but with what the
markets have done we kept our
pricing flat,” a second consumer
source said.
Meanwhile, market activity has
substantially slowed down over
the past week, according to market
sources, who noted that some
suppliers are resisting any further
downward push in pricing.
“Seems like some dealers smell a
bottom and decided to hold for the
time being since they can’t deliver
in June anyway,” the second
consumer said.
“The phones aren’t ringing
off the wall from scrap dealers
wanting to sell. The yards we have
been dealing with are saying the
flow has been slow, especially for
this time of year when the flow
should be good,” according to the
first consumer.
A third consumer shared a
similar view on the market, noting
that some suppliers are holding
out for better prices while some
smaller dealers in need of cash
flow are still turning inventories.
BRAD MACAULAY
BMACAULAY@AMM.COM
China
2015
2014
% change
202
0
0
202
3,014
-93.3
0
2,640
2,640
12,089
-78.2
428
0
737
317
+132.5
Malaysia
0
0
0
0
4,932
-100.0
110
Mexico
0
4,923
0
5,881
12,295
-52.2
100
South Korea
21,627
19,367
7,312
74,772
114,383
-34.6
Taiwan
6,637
4,358
2,479
18,567
24,904
-25.4
Thailand
2,119
2,440
24
5,516
462
—
34,085
17,200
29,812
106,933
91,129
+17.3
70
60
0
264
258
522
5,404
-90.3
5,611
5,004
24,333
36,214
-32.8
Totals
70,323
54,591
47,529
240,103
305,143
-21.3
Source: Compiled by AMM from data released by the U.S. Commerce Department.
JUNE 17, 2015
$375.00
Chicago
275.00
245.00
365.00
Philadelphia
280.00
255.00
365.00
Pittsburgh
285.00
260.00
375.00
Composite
$284.25
$256.75
$370.00
06/12/15
Prior Wk
Year Ago
Chicago
$270.00
$240.00
$397.00
Cleveland
273.00
255.00
435.00
Pittsburgh
280.00
255.00
431.00
Composite
$274.33
$250.00
$421.00
06/12/15
Prior Wk
Year Ago
$250.00
$230.00
$361.00
Philadelphia
248.00
230.00
340.00
Pittsburgh
250.00
235.00
370.00
Composite
$249.33
$231.67
$357.00
AMM A380 INGOT/SCRAP ALUMINUM PRICES
0
5,366
Year Ago
$267.00
(cents per pound)
287
Others
Prior Wk
$297.00
Chicago
India
Vietnam
06/12/15
Alabama
— calculation date —
Egypt
Turkey
— calculation date —
NO. 1 HEAVY MELT
Year to date
Feb.
SHREDDED SCRAP
— calculation date —
(in tonnes)
March
Averages calculated each Friday, based on data
effective from the previous Friday to Thursday. Prices
are in US$/gross ton.
NO. 1 BUSHELING
US EXPORTS OF NO. 2 HEAVY MELT
April
WEEKLY SCRAP COMPOSITE PRICES
UPDATED: JUNE 12, 2015
120
95.60
90
80
50
60.00
A380 Ingot
UBCs
Mixed low copper clips
56.00
Jun. July Aug. Sept. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Jun.
2015
2014
SOURCE: AMM.
IT IS A VIOLATION OF AMM COPYRIGHT TO PHOTOCOPY/DISTRIBUTE THIS PRODUCT
AMM PAGE 12
AMM STEEL BASE PRICES
PRICES EFFECTIVE TUESDAY, JUNE 16, 2015
STAINLESS STEELS
IMPORT PRICES
SHEETS
Market prices, f.o.b. mill, by grade, not including extra
charges for size, finish, temper, packaging, shipping
and other specifications.
Port of Houston prices, c.i.f. port, in US$/short ton.
COILED PLATE
Plate produced on a continuous mill.
Grade
US$/cwt
BARS
Reinforcing bar
$435-$440
Midwest market prices per hundredweight, f.o.b. mill,
for hot-rolled and cold-rolled sheets.
Hot-rolled
$23.00
Wire rod (low carbon)
$440-$454
Cold-rolled (Class I)
$28.75
Merchant bar
$600-$620
Hot-dipped galvanized (base price)
$29.00
Hot-dipped galvanized*
$33.50
Medium sections
$580-$600
Hot-rolled coil
$400-$420
Market prices per hundredweight, f.o.b. mill.
MERCHANT PRODUCTS
(base prices)
Reinforcing bar, Grade 60, No. 5
$29.00
$36.15
Galvalume
$30.75
2 x 2 x 1/4" angle
304
103.00
Medium plate
$470-$520
Electrogalvanized
$35.25
$480-$500
$36.60
105.00
Aluminized (Type 1)
$34.25
316
142.00
Cold-rolled coil
Hot-dipped
galvanized,0.012-0.015", G30
Hot-dipped galvanized,0.019", G60
3 x 3 x 1/4" angle
304L
$650-$700
Motor lamination
$31.75
8 x 11.5 channels
$35.85
316L
142.00
UNCOILED PLATE
WORLD EXPORT PRICES
Plate produced on a plate mill.
Grade
US$/cwt
304
189.00
304L
189.00
316L
235.00
BAR
Smooth-turned round bar, 1" diameter, mostly in
10,000-lb quantities.
Grade
US$/cwt
303
150.00
304
144.00
316
193.00
416
103.00
17Cr4Ni
204.00
COLD-ROLLED SHEET
Grade
US$/cwt
304
116.00
304L
118.00
316L
153.00
NA--Not available
To become a price contributor see
“Metal Exchanges” page.
Prices in US$/tonne. China, Turkey and India prices
are f.o.b. main port. CIS prices are f.o.b. Black Sea.
China export cold-rolled coil
$400-$405
(rev. 06/12/15)
China export galvanized coil
$470-$475
(rev. 06/12/15)
China export wire rod
$345-$350
(rev. 06/12/15)
Turkey export rebar
$445-$450
(rev. 06/11/15)
Turkey export wire rod
$475-$480
(rev. 06/11/15)
CIS export hot-rolled coil
$350-$390
(rev. 06/15/15)
CIS export cold-rolled coil
$440-$460
(rev. 06/15/15)
India export galvanized coil
$650-$655
(rev. 06/12/15)
Market prices per hundredweight, f.o.b. mill.
CARBON GRADE PLATE
$873
Cut-to-length
$29.00
Coiled
$27.25
STRIP MILL PLATE
48-inches
$23.75
60-inches
$24.75
72-inches
$24.75
ALLOY PLATE
National mills
Cold-Roll Coil
Hot-Roll Band
$54.00
1" round, 4140 (alloy)
$67.00
(special bar quality)
1" round, 1000 series (carbon)
$37.00
1" round, 4100 series (alloy)
$45.00
ROD
Market prices per hundredweight, f.o.b. mill.
Mesh quality low carbon
$26.00
$26.50-$27.00
High carbon
$28.50
Cold-heading quality
$30.00
BEAMS
Market prices per hundredweight, f.o.b. mill.
W8 x 8
$36.00
STRUCTURAL TUBING
Market prices in $/short ton
ASTM A500 Grade B
$700.00
300
$514
Dec. 8
June 8
WORLD EXPORT MARKET: HOT-ROLL BAND
200
600
600
500
400
$556
300
400
$383
Dec. 8
Cold-Roll Coil
June 8
$412
$452
$321
June 9
Dec. 8
STEELBENCHMARKER IS A JOINT VENTURE OF WORLD STEEL DYNAMICS INC. AND AMM/METAL BULLETIN THAT WAS OFFICIALLY LAUNCHED IN APRIL
2006. PRICES ARE PUBLISHED TWICE MONTHLY. STEELBENCHMARKER IS DESIGNED TO PROVIDE A RELIABLE SET OF BENCHMARK PRICES FOR USE
BY PARTICIPANTS IN THE STEEL INDUSTRY AND OTHERS WITHOUT REQUIRING DISCLOSURE OF ACTUAL TRANSACTION PRICES.
June 8
CHINA: REBAR
$423
$299
200
100
Hot-Roll Band
$557
700
700
300
CHINA: HOT-ROLL BAND AND COLD-ROLL COIL
500
400
200 June 9
$50.50
1" round, 12L14 (carbon)
700
500
500
$48.00
800
$645
$750
800
1" round, 1018 (carbon)
(dollars per tonne)
600
June 9
$36.35
COLD-FINISHED
National mills
600
400
1/2 x 4" flat
HOT-ROLLED
Average monthly market prices per ton from distributors surveyed in the Houston area by Pipe Logix, Inc.
May
Apr
Percent
TUBING
$/ton
$/ton
Change
Carbon - annealed ERW
$1,291
$1,333
-3.2
Carbon - seamless
$1,573
$1,661
-5.3
N80 - ERW
$1,523
$1,547
-1.5
N80 - seamless
$1,821
$1,855
-1.8
CASING
Carbon - annealed ERW
$1,035
$1,066
-2.9
Carbon - seamless
$1,249
$1,323
-5.6
N80 - ERW
$1,293
$1,344
-3.8
N80 - seamless
$1,515
$1,539
-1.6
800
700
PLATE
OIL COUNTRY TUBULAR GOODS
UNITED STATES: HOT-ROLL BAND AND COLD-ROLL COIL
1,000
* The price for hot-dip galvanized sheet represents
a base price plus a G90 coating on material 0.040
inch (1 millimeter) thick.
Industrial quality low carbon
STEELBENCHMARKER PRICING 2014-2015
900
$630-$700
June 9
Dec. 8
June 8
NOTE: PRICES FOR THE UNITED STATES ARE F.O.B. MILL, EAST OF MISSISSIPPI; CHINA IS EX-WORKS; AND WORLD
EXPORT MARKET IS F.O.B. PORT OF EXPORT. SOURCE: WORLD STEEL DYNAMICS INC., ENGLEWOOD CLIFFS, N.J.
Prices are subject to the disclaimer appearing on the “Metal Exchanges” page.
JUNE 17, 2015
IT IS A VIOLATION OF AMM COPYRIGHT TO PHOTOCOPY/DISTRIBUTE THIS PRODUCT
AMM PAGE 13
AMM NONFERROUS SCRAP PRICES
PRICES EFFECTIVE TUESDAY, JUNE 16, 2015
COPPER
No. 1 heavy copper and wire
NO. 2 HEAVY COPPER AND WIRE
Light copper
RED BRASS SOLIDS
Red brass turnings, borings
Cocks and faucets
Brass pipe
YELLOW BRASS SOLIDS
Mixed yellow brass turnings, borings
Yellow brass rod ends
Yellow brass rod turnings
70-30 brass clips
AUTO RADIATORS (UNSWEATED)
High-grade bronze gears
High-grade low lead bronze
Manganese bronze solids
Miscellaneous nickel-"silver" solids
Manganese bronze turnings
ALUMINUM
Boston
Buffalo
203-213
190-200
180-190
166-176
131-141
......
134-144
112-122
94-104
134-144
124-134
140-150
134-144
170-180
......
145-155
145-155
90-100
224-234
210-220
180-190
174-184
119-129
132-142
137-147
130-140
92-102
137-147
127-137
138-148
152-162
173-183
......
143-153
148-158
98-108
Atlanta
Boston
Buffalo
48-53
46-51
43-45
45-48
41-43
42-43
48-51
46-48
46-48
Chicago Cincinnati Cleveland
Detroit
Houston
L.A.
N.Y.
Philly
P’burgh
S.F.
St. Louis
Montreal
Toronto
219-229
205-220
185-195
174-184
134-144
127-137
147-157
125-135
102-112
137-147
132-142
138-148
137-147
163-173
153-163
148-158
153-163
108-118
209-224
205-220
185-200
169-179
149-159
132-142
152-162
123-133
102-112
132-142
132-142
153-163
137-147
158-168
168-173
143-153
138-148
98-108
219-229
205-215
190-200
174-179
129-139
132-142
142-152
128-138
112-122
145-155
137-147
158-168
135-145
173-183
168-178
148-158
158-168
103-113
227-237
214-224
188-198
198-208
152-162
140-150
165-175
158-168
120-130
148-158
155-165
161-171
168-178
181-191
171-181
161-171
156-166
106-116
209-224
200-215
185-200
168-178
148-158
131-141
146-156
129-139
91-101
141-151
141-151
142-152
141-151
172-182
......
142-152
152-162
92-102
224-234
215-230
190-205
163-173
153-163
136-146
146-156
144-154
86-96
141-151
141-151
147-157
156-166
172-182
......
142-152
152-162
92-102
224-239
220-235
180-195
174-184
144-154
132-142
137-147
130-140
102-112
137-147
137-147
143-153
142-152
163-173
153-163
148-158
153-163
108-118
214-229
200-210
160-170
189-199
147-157
142-152
162-172
148-158
125-135
155-165
145-155
151-161
155-165
173-183
173-183
158-168
153-163
103-113
226-236
217-227
195-205
184-194
169-179
157-167
157-167
145-155
117-127
160-170
145-155
176-186
157-167
......
163-173
158-168
158-168
96-106
286-296
263-273
238-248
179-189
129-139
174-184
174-184
162-172
114-124
182-192
174-184
175-185
149-159
180-190
170-180
173-183
173-183
118-128
259-274
245-255
215-230
174-184
124-134
159-169
......
155-165
104-109
......
......
......
127-137
170-180
......
163-173
......
108-118
Chicago Cincinnati Cleveland
Detroit
Houston
L.A.
N.Y.
Philly
P’burgh
S.F.
St. Louis
Montreal
Toronto
45-48
43-45
41-46
38-40
34-37
35-38
55-59
49-52
51-55
40-43
37-40
37-40
45-47
43-48
40-45
45-48
42-45
43-46
49-50
47-48
47-48
52-53
51-52
50-52
56-58
54-56
55-56
54-56
51-53
51-53
214-229
210-225
185-200
174-184
149-159
137-147
142-152
130-140
102-112
132-142
127-137
138-148
142-152
163-173
158-168
138-148
143-153
103-113
229-244
220-235
195-210
169-179
144-154
127-137
147-157
135-145
102-112
142-152
142-152
143-153
152-162
163-173
153-163
158-168
138-148
103-113
47-49
43-44
41-45
43-48
42-44
42-45
43-46
40-43
41-43
26-31
25-28
20-25
25-30
24-29
23-28
27-32
18-23
31-36
21-26
23-28
25-30
26-28
32-37
30-34
28-32
42-47
47-50
42-45
54-56
41-44
28-31
43-47
42-47
58-63
40-42
36-38
40-41
55-56
37-39
......
......
39-41
53-56
42-43
38-39
38-39
54-55
40-42
......
41-42
44-45
......
44-49
42-47
43-48
53-58
41-46
38-43
32-36
39-44
50-55
43-48
42-47
......
......
......
......
......
......
......
41-44
40-42
42-47
52-57
38-43
28-33
36-41
40-45
......
41-46
37-42
45-50
53-58
45-50
33-38
38-43
40-45
50-55
39-40
45-50
38-39
48-52
35-36
22-25
34-36
36-39
51-55
51-54
49-51
......
......
59-62
34-39
......
49-52
58-63
36-39
47-49
42-45
......
......
......
37-40
......
......
42-45
46-49
42-46
51-56
40-43
28-31
......
36-40
......
44-49
42-47
......
......
......
......
......
......
......
43-45
42-45
......
......
51-54
21-24
......
41-43
53-58
45-47
49-51
......
59-64
47-51
......
......
46-49
60-63
49-51
39-41
51-53
65-67
49-51
32-34
37-39
52-54
......
49-51
39-41
49-51
64-66
47-49
30-32
39-41
50-52
......
Atlanta
34-39
32-35
......
24-28
Boston
42-45
......
......
22-24
Buffalo
41-46
42-44
18-20
29-33
Chicago Cincinnati Cleveland
40-45
......
39-44
38-40
......
40-44
......
......
17-22
17-21
......
22-26
Detroit
36-40
37-41
......
22-26
Houston
36-41
37-41
......
25-29
L.A.
......
......
......
......
N.Y.
39-44
......
17-19
20-24
Philly
40-45
......
......
25-28
P’burgh
......
......
17-19
19-23
S.F.
33-38
34-38
14-18
17-21
St. Louis
40-44
42-46
......
......
Montreal
44-49
41-42
25-26
31-35
Toronto
40-45
......
......
......
Atlanta
Boston
Buffalo
Chicago Cincinnati Cleveland
Detroit
Houston
L.A.
N.Y.
Philly
P’burgh
S.F.
St. Louis
Montreal
Toronto
29-34
23-28
23-28
......
24-26
25-27
25-27
29-34
29-34
28-33
25-27
25-30
31-36
24-29
24-29
32-37
29-33
30-32
28-30
26-30
32-37
33-38
28-33
......
29-34
28-33
28-33
......
......
......
......
......
......
......
......
......
31-36
29-34
28-33
......
32-37
29-34
29-34
32-38
28-33
27-32
24-29
33-39
......
28-33
......
......
(rev. 06/15/15)
HEAVY SOFT LEAD
Mixed hard lead
Undrained,whole old batteries
WHEEL WEIGHTS
ZINC
Atlanta
228-238
220-230
195-210
171-181
156-166
124-134
134-144
142-152
89-99
139-149
134-144
140-150
149-159
155-165
145-155
135-145
140-150
95-105
(rev. 06/15/15)
Segregated low copper clips
Mixed low copper clips
Mixed clips
Aluminum borings, turnings, clean
and dry
Old aluminum, sheet and cast
Used beverage cans, clean and dry
Industrial castings
63S aluminum solids
75S aluminum clips
75S borings, turnings, as is
Aluminum utensils
Painted aluminum siding
Litho sheets
LEAD
ESTIMATED DEALER BUYING PRICES, IN ¢/LB. DELIVERED TO YARD. MONTREAL AND TORONTO PRICES ARE IN CANADIAN CURRENCY
(rev. 06/15/15)
(rev. 06/15/15)
New zinc die cast
OLD ZINC DIE CAST
Old zinc scrap
Zinc die cast automotive grilles
NICKEL
31-35
24-29
24-29
32-37
......
......
......
......
......
......
......
......
(rev. 06/15/15)
New nickel clips and solids
Nickel turnings
New nickel-copper alloy
(e.g., Monel®) clips and solids
Nickel-copper alloy (e.g., Monel®)
turnings and shavings
Nickel-copper alloy
(e.g., Monel®) castings
Nickel-chrome-iron alloy
(e.g., Inconel®) solids
Atlanta
Boston
Buffalo
Detroit
Houston
L.A.
N.Y.
Philly
P’burgh
S.F.
St. Louis
Montreal
Toronto
475-510
400-430
450-485
375-405
450-485
375-405
Chicago Cincinnati Cleveland
475-510
400-430
475-510
400-430
475-510
400-430
475-510
400-430
475-510
400-430
450-485
......
475-510
......
475-510
......
475-510
400-430
450-485
......
450-485
......
450-485
375-405
450-485
......
295-355
265-325
265-325
295-355
295-355
295-355
295-355
295-355
265-325
295-355
295-355
295-355
265-325
265-325
......
......
250-285
220-255
220-255
250-285
250-285
250-285
250-285
250-285
220-255
250-285
250-285
250-285
220-255
......
......
......
275-300
255-280
255-280
275-300
275-300
275-300
275-300
275-300
255-280
......
275-300
275-300
......
255-280
......
......
300-365
270-335
270-335
300-365
300-365
300-365
300-365
300-365
270-335
300-365
300-365
300-365
270-335
270-335
270-335
270-335
Monel® and Inconel® are registered trademarks of Huntington Alloys Corp.
SCRAP
Scrap Prices Today
Estimated buying prices
(carload lots, delivered buyers' works)
In ¢/lb except as otherwise noted.
BRASS MILL SCRAP
No. 1 copper
258.50*
REFINERS' COPPER SCRAP
No. 1 copper
251.50*
No. 2 copper
232.50*
BRASS INGOT MAKERS' SCRAP
(rev. 06/16/15)
Copper
No. 1 bare bright
256.00-258.00*
No. 1
250.00-253.00*
No. 2
229.00-233.00*
Light copper
220.00-223.00*
No. 1 comp. solids (rev. 06/10/15)
202.00-205.00
Comp., borings, turnings
(rev. 06/10/15)
Radiators (rev. 06/10/15)
Yellow brass solids (rev. 06/10/15)
198.00-203.00
* Nominal for spot sales.
175.00-180.00
165.00-170.00
SMELTERS' LEAD SCRAP
Buying prices heavy soft lead (cwt), including delivery
to smelter
(rev. 06/16/15)
Scrap lead
$70.00-$72.00
Remelt lead
$73.00-$75.00
Whole batteries
$32.00-$34.00
Cable lead
$73.00-$75.00
SMELTERS' ZINC SCRAP
(rev. 06/16/15)
New zinc clippings
67.00-69.00
Old zinc (clean)
57.00-59.00
Galvanizers' dross
68.00-70.00
SECONDARY SMELTERS'
ALUMINUM SCRAP
Buying prices delivered to Midwest smelters in full
truckloads containing several grades
(rev. 06/15/15)
Mixed low copper clips
59.00-61.00
Mixed high copper clips
57.00-59.00
Mixed high zinc clips
50.00-52.00
1-1-3 sows
64.00-66.00
Siding, painted
57.00-59.00
Mixed clips
54.00-56.00
Old sheet
56.00-58.00
Old cast
59.00-61.00
Turnings, clean and dry
High grade
53.00-55.00
Mixed grade (max. 5% Zn)
47.00-49.00
Aluminum-copper radiators
127.00-132.00
Nonferrous auto shred (90%
71.00-73.00
alum.) *
* Unmixed full truckload, "twitch" grade
DOMESTIC ALUMINUM PRODUCERS
Buying prices for processed used aluminum cans in
carload lots, f.o.b. shipping point
(rev. 06/15/15)
Used beverage can scrap
55.00-57.00
MILLS, SPECIALTY CONSUMERS' BUYING PRICES
(rev. 06/15/15)
Segregated low copper alloy clips
5052
73.00-75.00
3105
64.00-66.00
Mixed low copper alloy clips
61.00-63.00
Painted siding
58.00-60.00
Nonferrous scrap price changes were made for
these cities: None
American
Metal
Market
Click here for
pricing online
To become a price contributor see
“Metal Exchanges” page.
Prices are subject to the disclaimer appearing on the “Metal Exchanges” page.
JUNE 17, 2015
IT IS A VIOLATION OF AMM COPYRIGHT TO PHOTOCOPY/DISTRIBUTE THIS PRODUCT
AMM PAGE 14
AMM SCRAP IRON AND STEEL PRICES
PRICES EFFECTIVE TUESDAY, JUNE 16, 2015
NOTICE
NOTICE
AMM proposes to delist the assessments for Steel Car Wheels for
Pittsburgh and Philadelphia effective July 7, 2015. If you have any
questions about this proposed change, please e-mail lgordon@amm.com.
AMM proposes to delist Consumer Buying Price Trends for Houston and
Seattle/Portland, effective August 12, 2015. If you have any questions
about this proposed change, please email lgordon@amm.com.
Scrap Prices Today
Stainless steel scrap price changes were made for: Boston, Buffalo, Chicago,
Cleveland, Detroit, Houston, Los Angeles, New York, Philadelphia,
Pittsburgh, San Francisco, Montreal
CONSUMER BUYING PRICES
Estimated domestic consumer buying prices in US$/gross ton; delivered mill price. (a) Appraisal price NA--Not available Ark/Tenn
Border
06/09/15
260
......
275
235
280
......
295
190
......
......
......
275
......
......
......
......
......
......
......
......
......
......
......
Alabama
06/05/15
268
258
280
......
300
......
297
148
......
......
297
280
......
......
......
......
......
......
......
......
......
......
......
DATE REVIEWED:
NO. 1 HEAVY MELT
No. 2 heavy melt
No. 1 bundles
No. 2 bundles *
No. 1 busheling
No. 1 industrial bundles
Shredded auto scrap
MACHINE SHOP TURNINGS
Cast iron borings
Cut structural/plate, 2' max
Cut structural/plate, 3' max.
Cut structural/plate, 5' max.
Foundry steel, 2' max.
Cupola cast
CLEAN AUTO CAST
Unstripped motor blocks
Heavy breakable cast
Drop broken machinery cast
Rail crops, 2' max.
Random rails
Steel car wheels
Rerolling rails
STEEL (TIN) CAN BUNDLES
Chicago
06/05/15
250
245
265
215
270
......
275
160
165(a)
310(a)
......
270
270(a)
295(a)
330(a)
260(a)
160(a)
320(a)
305(a)
265(a)
287
300(a)
235
Cincinnati
06/09/15
250
......
265
......
275
......
285
175
......
......
......
275
......
......
......
......
......
......
......
......
......
......
......
Cleveland
06/09/15
245
......
287
......
285
......
287
75(a)
......
......
......
270
217(a)
140(a)
305(a)
325(a)
125(a)
253(a)
388(a)
......
287
......
255
Detroit
06/04/15
251
......
266
......
271
......
270
175(a)
......
......
......
265
280(a)
330(a)
355(a)
......
......
......
......
......
......
......
240
N. Carolina/
Virginia Philadelphia
06/05/15
06/05/15
265
248
......
......
......
260
......
170(a)
285
268
......
......
290
280
165
199
......
......
......
330(a)
......
275(a)
275
265
......
288(a)
......
263(a)
......
298(a)
......
253(a)
......
203(a)
......
308(a)
......
343(a)
......
265
......
273(a)
......
......
......
......
Pittsburgh
06/05/15
250
......
260
89
280
280
285
130(a)
130(a)
......
284
272
215(a)
250(a)
305(a)
370(a)
210(a)
......
370(a)
290(a)
290(a)
......
220
†
Canadian currency; in net tons
South
Carolina Youngstown
06/05/15
06/08/15
265
250
......
......
......
......
......
120
285
280
......
......
290
275
155
......
......
......
......
......
......
......
275
270
......
245
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
Hamilton,
Ontario† Composites
06/09/15
......
220
249.33
......
......
277
......
......
......
263
278.33
......
......
260
284.25
......
......
......
......
......
......
......
......
239
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
......
* Shredders may also be considered consumers for this grade
AMM INDEXES
DEALER SELLING PRICES
Estimated prices in US$/gross ton, shipping point dealer yard
Ferrous Scrap Export Index ($/tonne, evaluated 06/10/15)
HMS 1&2 (80:20) East Coast (f.o.b. New York)
271.00
HMS 1&2 (80:20) West Coast (f.o.b. Los Angeles)
255.00
Shredded Steel Scrap, East coast (f.o.b New York)
276.00
Midwest Ferrous Scrap Index ($/gross ton, evaluated 06/10/15)
No. 1 heavy melt
251.98
No. 1 busheling
270.21
Shredded steel scrap
273.92
MB Iron Ore Index ($/tonne, evaluated 06/16/15)
MBIO Index
62.91
CONSUMER BUYING PRICE TREND
Canadian currency; in net tons
Buffalo
Houston
St. Louis
Montreal †
DATE REVIEWED:
06/05/15
06/08/15
06/09/15
06/09/15
06/09/15
No. 1 heavy melt
250
230
215
240
215
No. 1 bundles
......
......
......
260
......
No. 1 busheling
270
260
245
265
220
Shredded auto scrap
275
270
255
273
340
Machine Shop Turnings
152
145
160
160
130
Cut structural/plate, 5' max.
260
247
240
250
225
EXPORT YARD BUYING PRICES
Estimated trends in US$/gross ton, from prior month
Seattle/
Portland
06/08/15
0
......
0
0
0
Houston
06/10/15
20
20
25
20
20
DATE REVIEWED:
No. 1 heavy melt
No. 1 busheling
Shredded auto scrap
Machine shop turnings
Cut structural/plate, 5' max
†
Atlanta
STAINLESS CONSUMER BUYING PRICES
(US$/gross ton)
Pittsburgh (reviewed 06/05/15)
316 solids, clips
304 solids, clips
304 turnings
430 bundles, solids
409 bundles, solids
1,775-1,890
1,345-1,365
1,210-1,230
500-520
415-435
Estimated prices an export dealer, broker or processor will pay for items delivered to his yard, in US$/gross ton.
Boston
L.A.
N.Y.
Philly
DATE REVIEWED:
05/20/15
No. 1 heavy melt
230
No. 2 bundles
155
No. 1 busheling
......
Machine shop turnings
......
Mixed cast
220
Unstripped motor blocks
225
Auto bodies
175
Cut structural/plate 5' max.
235
STAINLESS STEEL SCRAP PRICES ($/gross ton)
DATE REVIEWED:
06/16/15
304 solids, clips
......
304 turnings
......
430 bundles, solids
290-380
(a) Appraisal price
S.F. Seattle/Portland
05/19/15
140
85
150
70
......
145
80
150
05/20/15
225
185
......
150
225
230
185
230
05/20/15
225
180
......
......
225
225
190
230
05/19/15
145
110
160
65
......
155
110
150
05/19/15
170
......
......
50
......
145
145
180
06/16/15
1,210-1,300
1,030-1,140
290-380
06/16/15
1,210-1,300
1,030-1,140
290-380
06/16/15
1,210-1,300
1,030-1,140
290-380
06/16/15
1,210-1,300
1,030-1,140
290-380
......
......
......
......
STAINLESS STEEL SCRAP
Boston
Buffalo
Chicago
Cleveland
Detroit
Houston
L.A.
N.Y.
P’burgh
S.F.
Montreal†
DATE REVIEWED:
06/16/15
DEALERS' BUYING PRICES (¢/lb.) † Canadian currency
316 solids, clips
50-59
304 solids, clips
30-44
304 turnings
19-31
304 new clips (prompt industrial scrap)
......
430 new clips (prompt industrial scrap)
5.0-10.0
06/16/15
06/16/15
06/16/15
06/16/15
06/16/15
06/16/15
06/16/15
06/16/15
06/16/15
06/16/15
50-59
30-44
19-31
30-44
......
51-60
31-45
20-32
31-45
5.0-10.0
51-60
31-45
20-32
31-45
5.0-10.0
51-60
31-45
20-32
31-45
5.0-10.0
51-60
31-45
20-32
......
......
50-59
30-44
19-31
30-44
......
51-60
31-45
20-32
31-45
5.0-10.0
51-60
31-45
20-32
31-45
5.0-10.0
50-59
30-44
19-31
30-44
50-59
30-44
19-31
30-44
......
......
......
......
......
......
......
1,590-1,700
1,210-1,300
1,030-1,140
290-380
180-245
225-335
155-270
1,590-1,700
1,210-1,300
1,030-1,140
......
......
......
......
1,590-1,700
1,210-1,300
1,030-1,140
290-380
......
225-335
155-270
1,590-1,700
1,210-1,300
1,030-1,140
290-380
......
225-335
......
......
......
......
......
......
......
......
1,590-1,700
1,210-1,300
1,030-1,140
......
......
......
......
1,590-1,700
1,210-1,300
1,030-1,140
290-380
180-245
225-335
155-270
BROKER/PROCESSOR BUYING PRICES (US$/gross ton)
316 solids, clips
304 solids, clips
304 turnings
430 bundles, solids
430 turnings
409 bundles, solids
409 turnings
......
......
......
......
......
......
......
To become a price
contributor see
“Metal Exchanges” page.
Prices are subject to the disclaimer appearing on the “Metal Exchanges” page.
JUNE 17, 2015
IT IS A VIOLATION OF AMM COPYRIGHT TO PHOTOCOPY/DISTRIBUTE THIS PRODUCT
AMM PAGE 15
METAL EXCHANGES
PRICES EFFECTIVE TUESDAY, JUNE 16, 2015
LONDON METAL EXCHANGE
NEW YORK FUTURES
Settlement price (*) is the same as the first-session cash asking price. Prices in US$/tonne.
Stocks represent total tonnes in LME warehouses at the end of the preceding day.
June 16, 2015
Bid
Ask
(in China yuan/tonne)
COMEX COPPER
(prices effective 06/16/15)
(cents/pound)
June 15, 2015
Bid
SHANGHAI FUTURES EXCHANGE
Comex, high grade, electrolytic cathode
Ask
ALUMINUM -- HIGH GRADE
Settlement (eff. 06/16/15)
1st session
Spot (Jun)
262.65¢
Cash
1,660.50
1,661.00*
1,660.00
1,660.50*
Jul
261.55¢
3 months
1,701.00
1,702.00
1,703.00
1,704.00
Aug
261.95¢
STOCKS
3,635,275
STOCKS
3,644,350
Sep
262.05¢
ALUMINUM -- ALLOY (380-1, DIN 226, ADC 12)
Opening stocks, short tons
1st session
Cash
1,730.00
1,740.00*
1,730.00
1,740.00
3 months
1,745.00
1,755.00
1,745.00
1,755.00
STOCKS
16,740
STOCKS
17,180
ALUMINUM-ALLOY (North American Special)
1st session
Cash
1,745.00
1,755.00
1,725.00
1,730.00
3 months
1,770.00
1,780.00
1,755.00
1,760.00
STOCKS
60,660
STOCKS
61,440
25,120
COMEX GOLD
($/troy ounce)
Comex settlement (99.5%, eff. 06/16/15)
Jun
$1,180.50
Jul
$1,180.50
Aug
$1,180.90
Oct
$1,181.90
COMEX SILVER
(cents/troy ounce)
COBALT
Comex settlement (99.9%, eff. 06/16/15)
1st session
Cash
30,600.00
30,800.00
30,600.00
30,800.00
Jun
1,595.80¢
3 months
30,600.00
30,800.00
30,600.00
30,800.00
Jul
1,596.50¢
STOCKS
449
STOCKS
449
Sep
1,600.40¢
COPPER -- GRADE A
Dec
1,605.90¢
1st session
PLATINUM AND PALLADIUM
Cash
5,751.00
5,752.00*
5,760.00
5,760.50*
3 months
5,785.00
5,786.00
5,785.00
5,790.00
STOCKS
318,600
STOCKS
314,400
LEAD
1st session
Cash
3 months
1,790.50
1,791.00*
1,805.00
1,806.00*
1,812.50
1,813.00
1,818.00
1,819.00
STOCKS
179,775
STOCKS
185,225
($/troy ounce)
(Nymex settlement prices, eff. 06/16/15)
Platinum (99.95%), Jul
$1,079.80
Platinum (99.95%), Oct
$1,080.80
Palladium (99.95%), Jun
$732.75
Palladium (99.95%), Sep
$732.80
NATURAL GAS
(cents/mmBtu)
MOLYBDENUM
(Nymex settlement prices, eff. 06/16/15)
1st session
Cash
14,700.00
15,200.00
15,650.00
16,150.00
3 months
14,700.00
15,200.00
15,750.00
16,250.00
STOCKS
120
STOCKS
120
Henry Hub, Jul
($/short ton)
NICKEL
(Nymex settlement prices, eff. 06/16/15)
1st session
Cash
12,770.00
12,775.00*
12,730.00
12,735.00*
3 months
12,795.00
12,800.00
12,800.00
12,825.00
STOCKS
461,568
STOCKS
464,556
STEEL BILLET
Jun
$461.00
Jul
$499.00
Aug
$510.00
Sep
$520.00
MIDWEST NO. 1 BUSHELING FERROUS SCRAP
1st session
Cash
3 months
100.00
150.00
100.00
150.00
115.00
STOCKS
165.00
115.00
165.00
65
STOCKS
65
TIN
1st session
Cash
14,525.00
14,530.00*
14,425.00
14,430.00*
3 months
14,600.00
14,650.00
14,400.00
14,425.00
STOCKS
7,205
STOCKS
7,345
ZINC -- SPECIAL HIGH GRADE
1st session
Cash
2,081.00
2,081.50*
2,085.00
2,087.00*
3 months
2,094.00
2,095.00
2,095.00
2,097.00
STOCKS
467,475
STOCKS
469,550
JUNE 17, 2015
289.40¢
HOT-ROLLED COIL
($/gross ton)
(Nymex settlement prices, eff. 06/16/15)
Jun
$270.21
Jul
$250.00
Aug
$250.00
Sep
$250.00
TO BECOME A PRICE CONTRIBUTOR
AMM invites you to become a pricing/assessment contributor. Please send your name,
company, contact details and metals/categories of interest to the Editor-in-Chief, Bristol
Voss, at bristol.voss@amm.com. An AMM metals specialist in your category will follow
up by phone or e-mail to establish the details of how and how frequently you would
be willing to provide input. AMM reports on more than 1,200 proprietary steel, scrap,
ferrous and nonferrous categories.
IT IS A VIOLATION OF AMM COPYRIGHT TO PHOTOCOPY/DISTRIBUTE THIS PRODUCT
Aluminum
Copper
Lead
Zinc
12,645
42,290
12,930
16,080
EXCHANGE RATES
Selling prices in US dollars at 11:00 am in NY, based on
Reuters quotes.
$ per
per $
Euro
1.1234
0.8902
Canada (dollar)
0.8112
1.2328
Japan (yen)
0.008101
123.4450
Britain (pound)
1.5619
0.6403
China (yuan)
0.1611
6.2086
Mexico (peso)
0.0648
15.4203
Russia (Ruble)
0.0185
53.9800
Switzerland (franc)
1.0734
0.9316
Australia (dollar)
0.7754
1.2897
South Africa (Rand)
0.0807
12.3898
DISCLAIMER
Important Please Read Carefully
This Disclaimer is in addition to our Terms and
Conditions as available on our website (click here)
and shall not supersede or otherwise affect these
Terms and Conditions.
Prices and other information contained in this
publication have been obtained by us from various
sources believed to be reliable. This information has
not been independently verified by us. Those prices
and price indices that are evaluated or calculated
by us represent an approximate evaluation of
current levels based upon dealings (if any) that
may have been disclosed prior to publication to us.
Such prices are collated through regular contact
with producers, traders, dealers, brokers and
purchasers although not all market segments may
be contacted prior to the evaluation, calculation,
or publication of any specific price or index. Actual
transaction prices will reflect quantities, grades and
qualities, credit terms, and many other parameters.
The prices are in no sense comparable to the quoted
prices of commodities in which a formal futures
market exists.
Evaluations or calculations of prices and
price indices by us are based upon certain market
assumptions and evaluation methodologies, and
may not conform to prices or information available
from third parties. There may be errors or defects
in such assumptions or methodologies that cause
resultant evaluations to be inappropriate for
use. Your use or reliance on any prices or other
information published by us is at your sole risk.
Neither we nor any of our providers of information
make any representations or warranties, express
or implied as to the accuracy, completeness or
reliability of any advice, opinion, statement or
other information forming any part of the published
information or its fitness or suitability for a
particular purpose or use. Neither we, nor any of
our officers, employees or representatives shall
be liable to any person for any losses or damages
incurred, suffered or arising as a result of use
or reliance on the prices or other information
contained in this publication, howsoever arising,
including but not limited to any direct, indirect,
consequential, punitive, incidental, special or
similar damage, losses or expenses.
We are not an investment advisor, a financial
advisor or a securities broker. The information
published has been prepared solely for
informational and educational purposes and is not
intended for trading purposes or to address your
particular requirements. The information provided
is not an offer to buy or sell or a solicitation of
an offer to buy or sell any security, commodity,
financial product, instrument or other investment
or to participate in any particular trading strategy.
Such information is intended to be available for
your general information and is not intended to
be relied upon by users in making (or refraining
from making) any specific investment or other
decisions. Your investment actions should be solely
based upon your own decisions and research and
appropriate independent advice should be obtained
from a suitably qualified independent advisor before
making any such decision.
AMM PAGE 16
AMM MARKET GUIDE
PRICES EFFECTIVE TUESDAY, JUNE 16, 2015
NOTICE
AMM has delisted its tin prices [Grade A Premium and
the AMM free market price] and magnesium price
[AMM free market price], effective June 15, 2015. If you
have any questions, please e-mail dfitzgerald@amm.com.
PRECIOUS METALS
(all precious metal prices effective 06/16/15)
GOLD
(US$/troy ounce)
London A.M.
$1,182.10
London P.M.
$1,177.75
Handy and Harman (bullion base)
$1,177.75
Handy and Harman (fabricated form)
$1,271.97
Engelhard (bullion base)
$1,181.85
Engelhard (fabricated form)
$1,270.49
IRIDIUM
(US$/troy ounce)
Johnson Matthey
$580.00
PLATINUM
(US$/troy ounce)
London P.M. fix
$1,084.00
Engelhard (unfab.)
$1,087.00
Engelhard (fab.)
$1,187.00
Johnson Matthey
$1,085.00
PALLADIUM
(US$/troy ounce)
London P.M. fix
$739.00
Engelhard (unfab.)
$742.00
Engelhard (fab.)
$842.00
Johnson Matthey
$737.00
RUTHENIUM
(US$/troy ounce)
Johnson Matthey
$50.00
RHODIUM
(US$/troy ounce)
Johnson Matthey
$990.00
SILVER
(¢/troy ounce)
Engelhard (bullion base)
1,597.00¢
Engelhard (fabricated form)
1,916.40¢
Handy and Harman (bullion base)
1,597.50¢
Handy and Harman (fabricated form)
1,949.00¢
Heraeus Precious Metals
1,599.50¢
Metalor USA Refining
1,592.00¢
LBMA
1,603.00¢
Notice: Effective August 15, 2014, the London fix
price is now known as the LBMA (London Bullion
Market Association) Silver Price. For more
information click here.
FOOTNOTE
* Price is sourced from U.S. Department of Commerce
data compiled by the U.S. Geological Survey.
BASE METALS
MINOR METALS
ALUMINUM
LME(99.7%) unofficial prices
75.52
Spot(¢/lb)
3-month (¢/lb)
77.34
Midwest Premium (rev. 06/10/15)
8.25¢-8.50¢
AMM Free Market, ¢/lb
83.76¢-84.01¢
6063 extrusion billet upcharge
12.50¢-13.00¢
Domestic producer estimated prices ($/lb)
C355.2
1.08
A356.2
1.03
6061 (extrusion hom.)
0.96-0.97
6063 (extrusion hom.)
1.04-1.05
SECONDARY ALUMINUM
AMM Free Market, ¢/lb, delivered Midwest (rev. 06/15/15)
A380.1
94.00-95.00
319.1
102.00-104.00
356.1
106.00-108.00
A360.1
105.00-107.00
A413.1
105.00-107.00
COPPER
Premium (rev. 06/04/15)
5.75¢-6.25¢
AMM free market cathode, ¢/lb
268.40¢-268.90¢
LEAD
Premium (rev. 05/20/15)
10.00¢-12.00¢
AMM free market price, ¢/lb
91.20¢-93.20¢
NICKEL
Melting material
Premium (rev. 06/03/15)
18.00¢-23.00¢
AMM free market price, ¢/lb
597.14¢-602.14¢
Plating material
Premium (rev. 06/03/15)
60.00¢-65.00¢
AMM free market price, ¢/lb
639.14¢-644.14¢
ZINC
Special high grade premium
(rev. 06/12/15)
7.50¢-8.00¢
AMM free market price, ¢/lb
101.88¢-102.38¢
SHG average week ending
104.99¢
06/12/15
ZINC - DIE CASTING ALLOYS
(rev. 06/16/15)
Premium
Price, ¢/lb
Nos. 3 and 7
19.00¢-20.00¢ 112.38¢-113.38¢
No. 5
20.00¢-21.00¢ 114.38¢-115.38¢
No. 2
23.00¢-25.00¢ 115.38¢-117.38¢
Zinc-aluminum foundry alloys
No. 8
22.00¢-24.00¢ 116.38¢-118.38¢
No. 12
23.00¢-25.00¢ 117.38¢-119.38¢
No. 27
28.00¢-29.00¢ 122.38¢-123.38¢
ANTIMONY
(rev. 06/12/15)
MB free market, US$/tonne
$8,200.00-$8,400.00
BISMUTH
(rev. 06/12/15)
MB free market, US$/lb
$6.50-$7.00
CADMIUM
(rev. 06/12/15)
MB free market
min 99.95%, ¢/lb in warehouse
40.00¢-46.00¢
min 99.99%, ¢/lb in warehouse
41.00¢-48.00¢
CHROMIUM METAL
(rev. 06/12/15)
MB free market, US$/tonne
$8,300.00-$8,700.00
COBALT
(rev. 06/12/15)
MB free market
High grade, US$/lb in warehouse
$13.50-$14.35
Low grade, US$/lb in warehouse
$13.50-$14.15
GERMANIUM
(rev. 06/12/15)
MB free market, US$/kg
$1,225.00-$1,300.00
INDIUM
(rev. 06/12/15)
MB free market, US$/kg
$390.00-$445.00
MAGNESIUM
MB Europe free market, US$/tonne
(rev. 06/12/15)
$2,225.00-$2,275.00
MERCURY
(rev. 06/12/15)
MB free market, US$/flask
$2,250.00-$2,850.00
SELENIUM
(rev. 06/12/15)
MB free market, US$/lb
$13.25-$15.75
SILICON METAL
(rev. 06/12/15)
AMM free market, ¢/lb
131.00¢-135.00¢
TITANIUM
Estimated market prices in US$/lb, f.o.b. shipping point.
Sponge, imported for consumption, including tariff
Japan, rotor quality (rev. 06/12/15) *
$5.48
Ingot, 6AI-4V (rev. 06/12/15)
$8.00-$8.75
Plate, alloy, AMS 4911
1/2 inch x 48-in x 120-in
(rev. 06/12/15)
$25.00-$26.00
Bar, alloy, AMS 4928
1-in. dia. round
(rev. 06/12/15)
$20.00-$21.00
Plate, commercially pure,
ASTM-B265 Grade 2,
1/2-in x 96-in x 240-in
(rev. 06/12/15)
$10.50-$11.00
Sheet, commercially pure,
ASTM-B265 Grade 2,
1/8-in x 36-in x 96 in
(rev. 06/12/15)
$13.50-$15.00
NOTICE
AMM proposes to begin listing a North American
aluminum DEOX price on the first Monday of each month
(or business day following a holiday Monday) effective
July 6, 2015. If you have any questions about this
proposed change, please e-mail dfitzgerald@amm.com.
FERROALLOYS
FERROCHROME
(rev. 06/11/15)
High carbon
AMM free market, ¢/lb
108.00¢-110.00¢
Low carbon
AMM free market, ¢/lb
0.05%C-65% min Cr
224.00¢-227.00¢
0.10%C-62% min Cr
208.00¢-211.00¢
0.15%C-60% min Cr
204.00¢-207.00¢
FERROMANGANESE
(rev. 06/11/15)
High carbon
AMM free market, US$/long ton
$925.00-$950.00
Medium carbon
AMM free market, ¢/lb
96.00¢-97.00¢
Low carbon
AMM free market, ¢/lb
104.00¢-105.00¢
SILICOMANGANESE
(rev. 06/11/15)
AMM free market, ¢/lb
50.00¢-52.00¢
FERROSILICON
(rev. 06/11/15)
AMM free market, ¢/lb
88.00¢-92.00¢
MOLYBDENUM
(rev. 06/11/15)
AMM free market
Canned molybdic oxide, US$/lb
$7.40-$7.65
FERROMOLYBDENUM
(rev. 06/11/15)
AMM free market, US$/lb
$8.50-$8.70
TUNGSTEN
(rev. 06/12/15)
MB free market, APT, US$/mtu
$230.00-$235.00
VANADIUM PENTOXIDE
(rev. 06/12/15)
MB free market,
min 98% V2O5, US$/lb
$4.00-$4.50
FERROVANADIUM
(rev. 06/11/15)
AMM free market, US$/lb
$9.50-$10.00
To become a price contributor
see “Metal Exchanges” page
Prices are subject to the disclaimer appearing on the “Metal Exchanges” page.
MANAGING DIRECTOR
Raju Daswani • (646) 274-6257
rdaswani@amm.com
EDITORS
Bristol Voss editor-in-chief
(212) 224 -3932 • bristol.voss@amm.com
Jo Isenberg-O’Loughlin executive editor
(646) 274-6230 • jisenberg@amm.com
TEAM LEADERS
Thorsten Schier steel team leader
(646) 274-6240 • tschier@amm.com
Daniel Fitzgerald nonferrous team leader
(212) 224-3939 • dfitzgerald@amm.com
Lisa Gordon scrap team leader
(412) 880-4992 • lgordon@amm.com
NEWS TEAM
Michael Cowden correspondent, steel
(773) 643-9496 • mcowden@amm.com
Nat Rudarakanchana reporter, steel
(212) 224-3944 • nat.rudy@amm.com
Brad MacAulay reporter, nonferrous scrap
(412) 765-2585 • brad.macaulay@amm.com
Grace Lavigne reporter, copper, zinc
(212) 224-3908 • grace.lavigne@amm.com
JUNE 17, 2015
Kirk Maltais reporter, aluminum
(212) 224-3907 • kirk.maltais@amm.com
James Lawrence reporter, scrap
(412) 765-2581 • james.lawrence@amm.com
Emilia David reporter, supply chain, steel
(212) 224-3927 • emilia.david@amm.com
Carla Bridglal reporter
(212) 224-3954 • carla.bridglal@amm.com
NEWS DESK
Renate Foster Mas chief copy editor
(646) 274-6236 • rfmas@amm.com
Michael R. Holman senior copy editor
(239) 208-2782 • mholman@amm.com
Thaddeus Rutkowski senior copy editor
(212) 224-3906 • thaddeus.rutkowski@amm.com
Mark Stephens senior copy editor
(212) 224-3905 • mark.stephens@amm.com
PRODUCTION
Raveendra Karanth production manager/
pricing administrator
(646) 274-6252 • rkaranth@amm.com
Dany Pena production assistant
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Samuel Edsill production assistant
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publisher, AMM magazine
(646) 274-6250 • mconnors@amm.com
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(646) 274-6242 • mgreenlund@amm.com
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AMM PAGE 17