Contributor: Phil Hoffman

Phil Hoffman

Phil Hoffman has been in operations, logistics and trading ferrous scrap globally for more than 30 years. Hoffman Iron has also consulted for numerous steel mills, where he has enhanced steel mill scrap and raw material operations by successfully reducing raw material costs while increasing yields. Hoffman is in addition an attorney specializing in international trade and maritime law.

Questioning long-held scrap price ‘realities’

Does the price of ferrous scrap depend on the price of finished steel product? And how much of an influence do billet and slab prices have on scrap prices?

Hoffman on scrap: Could a floor in Asia firm US prices in April?

Numerous mid-sized export yards in California and in Baja Mexico had little to no inventory on the ground last week because most had sold forward in the falling March market. Looking to secure their margins, they dropped prices across the scale. That resulted in lower-than-normal flows. “I’m sold out through mid-April and even longer if the flow doesn’t pick up” one yard owner said. That turned out to be the position of numerous West Coast suppliers.

March ferrous scrap market: Trends and turmoil

As I see it, the market looked to be a perfect storm for consumers this month while two large steel mills tried to put a floor on hot-rolled coil (HRC). One source speculated that “flat rolled mills coordinated their downtime and will take out 250,000 tons of capacity in April,” which made them attempt to put a bottom on flat-rolled product.

Hoffman on scrap: The March outlook

The news in the West was that a mill in the Rocky Mountain region made a significant reduction in their usual purchase program, while still another small mill in the region also apparently reduced their buying program for February.

Hoffman on scrap: Weak Japanese yen weighs on West Coast export market

Having just attended the historically significant ISRI Mid-America Chapter Consumers Night Banquet in St. Louis and waiting for my delayed flight, it seemed I had the perfect opportunity to inform the industry of a few items that came out while wheeling and dealing in the beautiful Union Train Station Hotel. For the West Coast export […]