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

Scrap market chatter in September
Comments from participants of our Ferrous Scrap Market Survey.

Prime scrap prices slip for September, other grades sideways
US busheling scrap prices have declined this month, while shredded and HMS tags have remained unchanged, according to market sources.

SMU Scrap Survey: Current Sentiment rises as Future Sentiment falls
SMU’s current Scrap sentiment index increased this month while future sentiment declined, according to our latest ferrous scrap survey data.

September scrap buying underway, busheling down
The scrap market in the US for September shipment has started to settle, with busheling seen down so far.

Ferrous export market seeks direction
The export market is looking for direction based upon the latest scrap purchases from Northern Europe by Turkish steelmakers. The sentiment was looking bearish, but sellers may see it differently.