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
Read more from Michael CowdenLatest in Steel Mills
Nucor eyes long-term gains amid strong demand and trade enforcement
Resilient demand across its steel product lines, combined with the continued ramp-up of key expansion projects, drove Nucor’s improved financial results and record-setting performance in the second quarter. That’s according to company executives speaking on an earnings conference call on Tuesday.
Three independent, new directors join USS board
U.S. Steel (USS) appointed three new, independent US members to its board of directors, the company announced.
Nucor reports improved earnings, sales, and operating rates
Nucor reported a sharp sequential rebound in the second quarter, buoyed by improved pricing and strong shipments. But the steelmaker is bracing for a modest slowdown in the months ahead.
Cliffs confirms Cleveland furnace restart, Dearborn furnace idling
Cleveland-Cliffs is idling blast furnace, BOF shop, and continuous caster functions at its Dearborn plant, but downstream operations will remain unaffected, the company confirmed. Cliffs said its pickling line tandeom cold mill (PLTCM) and its extra wide automotive-grade galvanizing line for exposed parts will continue operations at the Dearborn, Michigan-based facility.
Nucor spot HR list price unchanged at $900/ton
Nucor maintained its weekly list price for hot-rolled (HR) coil flat this week, following a price cut the previous week.