Ferrous Scrap

Gerdau to buy Dale's Recycling ops for $60M
Written by Laura Miller
September 20, 2024
Gerdau Long Steel North America plans to acquire Dale’s Recycling Partnership, a Tennessee-based operator and processor of ferrous scrap.
Sao Paulo, Brazil-based longs producer Gerdau SA announced that its US subsidiary has signed an agreement to purchase the land, inventory, and fixed assets of Dale’s operations for $60 million.
The deal includes Dale’s seven recycling centers in Tennessee, one in Kentucky, and one in Missouri.
According to Dale’s website, the family-owned business has been in operation since 1983 when current owner Dale Nelson Sr. founded it.
“This acquisition aims to increase capture of captive ferrous scrap by Gerdau through proprietary channels, supplying raw material to its operations at a competitive cost,” Gerdau SA said in an official notice to the market on Wednesday, Sept. 18.
The company expects the transaction to close by the end of this year.
“The yards will predominantly supply ferrous scrap to our mill in Jackson, Tenn.,” a Gerdau spokesperson told SMU in an email. In fact, one of Dale’s yards is just a mile away from the Jackson mill, which produces merchant bar, SBQ, and rebar products.
Gerdau completed a project to upgrade the plant’s rolling mill, roll shop, warehouse, and conveyer earlier this year. “The investment expanded the mill’s merchant bar product range and operational competitiveness, while improving the flexibility of Gerdau’s network of mills,” according to the spokesperson.
Gerdau’s Metals Recycling group currently operates 24 scrap yards and four shredders in the US and Canada. Upon closing the deal with Dale’s, it will run nine additional yards.
Gerdau Long Steel North America, formerly known as Gerdau Ameristeel, is a Tampa, Fla.-based longs steel producer and metals recycler. It produces various steel products, including merchant bar, rebar, structural steel, piling, and wide-flange beams.

Laura Miller
Read more from Laura MillerLatest in Ferrous Scrap

Busheling and shredded tags drop, widening HRC vs. prime scrap spread
US scrap prices fell on busheling and shredded in October, while HMS remained flat, market sources told SMU.

Obsolete scrap pinned by freight and weak export flows
here has been considerable activity in the export scrap market in the Mediterranean Basin over the last 10 days. Prices have inched up after recovering from a brief dip in September. Prices range from...

Mixed bids, outages, and full inventories cloud October scrap settlement
Stephen Miller reports the US domestic scrap market is on the verge of setting prices for October, although wide-scale buying is still in progress.

IIMA meeting: Decarbonization to drive demand for scrap, DRI
In the Americas, the ongoing conversion to EAF melting is driving demand for prime grades of scrap and increased use of ore-based metallics

October scrap market still up for grabs
The ferrous scrap market is still searching for clues about the direction of the October market.