Schnitzer Steel achieves "best results in over a decade" in second financial quarter

Demand was up sharply after "many quarters of destocking".
08.04.2021 − 

US scrap metal recycler and steelmaker Schnitzer Steel profited from sharp increases in ferrous and non-ferrous prices in its most recent financial quarter. Demand surged following "many quarters of destocking", CEO Tamara Lundgren told analysts on Wednesday. Schnitzer generated revenues of $600m (ca. €506m) in the second quarter of its 2020/21 year, up 37 per cent in annual comparison. The concern's net income for the quarter ended 28 February stood at $46m, soaring from the $5m posted a year earlier.

In the presentation for the second financial quarter, Ms Lundgren noted the significant volatility that had marked the reporting period and continued into March. She said that trading had been stronger, reflecting the post-pandemic economic recovery and positive structural commodity trends. Strong demand for non-ferrous scrap also pushed prices to multi-year highs. She highlighted demand from China and the rebound in the price of Zorba, which had more than doubled from $0.75/kg to around $1.65/kg over the course of the past year.

For the current third quarter, Schnitzer Steel was expecting its ferrous sales volumes to increase sequentially by 15 to 20 per cent, including the completion of some shipments delayed by severe weather in February. Schnitzer projects an increase of 10 to 15 per cent in its non-ferrous scrap sales volumes.

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