Steel Mills
BlueScope Closes $240M MetalX Deal as Prime Scrap Rush Continues
Written by Michael Cowden
December 22, 2021
BlueScope Steel has closed its $240 million deal for ferrous scrap recycler MetalX.
With the transaction complete, MetalX will operate under the name BlueScope Recycling and Materials.
BlueScope announced the deal in early November and closed it on Dec. 17, according to a statement released earlier this week.
MetalX is the leading scrap supplier to North Star BlueScope, an electric arc furnace (EAF) sheet mill in Delta, Ohio. It processes both prime and obsolete scrap.
BlueScope’s acquisition of the company is part of a trend of mills buying scrap companies to secure what some fear could be increasingly scarce prime scrap – something an Evraz North America executive described on a recent SMU Community Chat as “a rush to acquire dots on the map.”
Two recent examples: BlueScope competitor Cleveland-Cliffs last month announced a $775 million acquisition of Detroit-based Ferrous Processing and Trading Co. (FPT). And Canadian flat-rolled steelmaker Algoma has formed a joint venture with Triple M to source prime scrap.
Steel Market Update, meanwhile, continues to hear that other big deals involving steel mills and related scrap suppliers are in the works, with big announcements potentially coming as soon as early January.
By Michael Cowden, Michael@SteelMarketUpdate.com
Michael Cowden
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