Steel Mills

SDI Completes Purchase of Mexican Recycler Roca Acero
Written by David Schollaert
October 4, 2022
Steel Dynamics Inc. (SDI) has completed its acquisition of Mexican ferrous and nonferrous scrap recycler Roca Acero SA de CV.
The Fort Wayne, Ind.-based EAF steelmaker did not disclose the purchase price but said the deal was paid for in cash.
“Combined with our existing metals recycling facilities in Mexico, the addition of Roca significantly strengthens our ferrous and nonferrous raw material procurement strategy in the region,” SDI chairman, president, and CEO Mark D. Millett said in a statement on Tuesday, Oct. 4.
“We believe our Mexican metals recycling facilities will provide a meaningful advantage to our electric-arc-furnace steel operations and planned aluminum flat-rolled products operations, while also providing a high-quality, customer-centric option for our customers in Mexico and the US,” he said.
Roca Acero, a Monterrey, Mexico-based metals recycler, operates five ferrous and nonferrous scrap metal recycling facilities “strategically positioned near high-volume industrial scrap sources” in central and northern Mexico, according to SDI.
Roca currently ships approximately 575,000 gross tons of scrap annually. It has an annual processing capability of roughly 850,000 gross tons per year, the company said.
The acquisition of Roca Acero is SDI’s second acquisition in the Mexican scrap market. The steelmaker in August 2020 closed a deal for Monterrey-based scrap recycler Zimmer SA de CV.
With the two Mexican metals recycling businesses, SDI estimates its annual ferrous and nonferrous scrap processing capability within Mexico will be over 2.5 million gross tons.
The scrap will help feed SDI’s new EAF sheet mill in Sinton, Texas. The new mill, which officially started up in the first quarter of this year, cost $1.9 billion and has a steelmaking capacity of 3 million tons per year.
Like all EAFs, its primary feedstock is scrap, and SDI’s latest move helps ensure it has enough feedstock for its mills.
The Sinton mill is near Corpus Christi, a port city in southern Texas, and is approximately 300 miles from Monterrey — Mexico’s traditional industrial heartland.
By David Schollaert, David@SteelMarketUpdate.com

David Schollaert
Read more from David SchollaertLatest in Steel Mills

Hybar lowers output forecast, owning up to EAF startup delay
Hybar LLC’s rebar mill in Osceola, Ark., is now melting scrap and will soon be fulfilling orders, according to CEO David Stickler, despite a six-to-eight-week delay caused by commissioning the world’s first Aura electrical system.

Steel Dynamics guides to more metal, more money in Q3
Steel Dynamics Inc. is bullish heading into the close of the third quarter, with all three of its operating segments tracking higher.

AHMSA opens doors to potential buyers as $1.3B asset auction nears
AHMSA is opening its doors to potential buyers to tour its steel plant and mining operations in northern Mexico in preparation for the next stage of its bankruptcy process: the auction of its assets.

USW seeks clarity on USS plans for Granite City Works
The United Steelworkers union has asked U.S. Steel to elaborate on its Granite City Works plans following reports that the steelmaker is ending processing at the facility.

Nucor maintains plate prices, opens October order book
Nucor aims to keep plate prices flat for a seventh straight month with the opening of its October order book.