A Strategic Market Outlook for Regional US Ferrous Scrap to 2021

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A Strategic Market Outlook for Regional US Ferrous Scrap to 2021
A Strategic Market
Outlook for Regional
US Ferrous Scrap to 2021

                                                                                         New
                                                                                         and Exclusive
                                                                                           for 2014

l Which US scrap regions are growing and which are facing depleting reservoirs?

l How will ferrous scrap prices change over time?

l What are the intra-regional scrap trade flows within the US, and what will this mean to scrap suppliers?
A Strategic Market Outlook for Regional US Ferrous Scrap to 2021
New
   and Exclusive
     for 2014

                               A Strategic Market Outlook for Regional
                               US Ferrous Scrap to 2021
l Unique analysis of how to
  predict and understand
                               Future concerns for the US scrap market
  US scrap prices –
                               Over the past few months, the over capacity of shredders within the US has reduced the price premium
  nationally and regionally    shredded scrap commands over HMS grades down from $30/tonne to around $15/tonne, at the time of
l How regional crude steel
                               writing. Meanwhile, the busheling price margin over shredded has returned to within its traditional range.
  production dynamics will     However, beyond these short-term considerations lies the fact that the US scrap industry is facing a
  affect current and future    crisis of profitability, quality requirements to best meet domestic steelmaker requirements and changes
  scrap prices                 to the availability and price dynamics of alternative metallics. Over the next ten years, merger and

l How intra-regional scrap
                               acquisition activity will intensify as the internal landscape will also undergo significant changes in terms
                               of trade flows, recovery and transaction prices.
  recovery rates and trade
  flows by product type will
  change going forward         What is the future outlook for the US
l How serious the issue of
  scrap quality will be on
                               ferrous scrap industry?
  the industry
                               This new scrap report follows on from the highly successful US State-by-
l How scrap will relate to     State Steel study (published in July 2013) that focused on steel
  pig iron and DRI/HBI
                               consumption in the US between 1994 and 2021.
                               AMM Research has conducted a fully independent research study on the US scrap industry by product
                               type out to 2021, which aims to bring never seen before market intelligence vital to the interests of both
                               scrap buyers and sellers.
                               This brand new study is the most detailed and comprehensive examination of the US ferrous scrap
                               market providing detailed analysis and data broken down for 14 key US regions.
                               Each US region is evaluated on a standalone basis to best understand historic, current and
                               forecast supply and demand dynamics (1996-2021).
A Strategic Market Outlook for Regional US Ferrous Scrap to 2021
“Undeniably Metal Bulletin Research is an information provider
 throwing an objective light on often bifurcated information. Essential!”
 Krista Van Bergen, SteelFORCE Asia NV

 The study details the following in terms               Key analysis of all US regional ferrous
 of providing analysis, data and forecasts              scrap markets
 (out to 2021) for the following:
                                                        A key feature of this report is its regional focus on the
 US scrap consumption (including EAF, oxygen furnace,   ferrous scrap markets broken out by the following:
 iron foundry and blast furnace enrichment)                     • Connecticut, Maine, Massachusetts, New Hampshire,
                                                                  New Jersey, New York, Rhode Island, Vermont
 US scrap recovery                                              • Pennsylvania
          • Revert                                              • Illinois
          • Prompt                                              • Indiana
          • Obsolete (including newly obsolete)                 • Iowa, Kansas, Minnesota, Missouri, Nebraska,
                                                                  South Dakota, Wisconsin
 Scrap trade – Net inter-regional US trade by region            • Michigan
                                                                • Ohio
 A detailed scrap reservoir model                               • Delaware, Maryland, Virginia, West Virginia
                                                                • Florida, Georgia, North Carolina, South Carolina
 A fully dynamic and “open-source” forecasting scrap
                                                                • Alabama, Kentucky, Mississippi, Tennessee
 market model to run your own “what if scenarios” to
 changing parameters                                            • Arkansas, Louisiana, Oklahoma
                                                                • Texas
 A comprehensive historic and forecast ferrous scrap            • Arizona, Colorado, Idaho, Utah
 prices database which includes:                                • California, Oregon, Washington
          • No1 Bundles
          • No1 Bushelings                              For each US region, the report provides analysis and
          • Auto Shredded                               data (1996-2021) for the following:
          • No1 Heavy                                           • Scrap consumption
                                                                • Scrap generation (split between revert (home), prompt
          In the following areas:                                 and obselete)
          • Birmingham, Alabama                                 • Scrap recovery
          • Chicago, Illinois                                   • Scrap imports and exports
          • Charlotte, North Carolina                           • Net interregional scrap trade
          • Cleveland, Ohio                                     • Scrap reservoir – specifically designed to identify
          • Detroit, Michigan                                     which areas have growing supply and which have
          • Houston, Texas                                        nearly exhausted reservoirs
          • Philadelphia, Pennsylvania
          • St Louis, Missouri
A Strategic Market Outlook for Regional US Ferrous Scrap to 2021
Number of U.S. Scrap                    3
Shredders by State
                                    3                           1

                                                                                                                                7
Key:   Number of                                    1   1
       shredders                                                                            7                                       2
                                                                    4           9                                          17
                                            1
                                                    3                                                    13
                                7                                                                    9
                                                            6
                                                                                            10
                                                                        4                                     3        5
                                                                                                         7
                                                                                    7
                                                4
                                                        2                   8                       13                 12
                                                                                        5
                                                                                                     8   10        6

                                                                    26                          3

                                                                                                                  17

Scrap consumption
rates in the US
by region

Key:
 0 - 3,000
 3,001 - 6,000
 6,001 - 9,000
 9,001 - 12,000
 12,001 - 15,000

                   To order please call the hotline 212 224 3577 or email subscribe@amm.com
A Strategic Market Outlook for Regional US Ferrous Scrap to 2021
New
                                                                                                                             and Exclusive
                                                                                                                               for 2014

About AMM Research
AMM Research is the leading independent supplier of market intelligence and pricing to the North American metals industries and
publisher of the widely-used reference prices for scrap. American Metal Market (AMM), was founded in 1882, over its long history has
established itself as the unrivaled leader in metals news and pricing in North America. AMM and sister publication Metal Bulletin are part of
the Euromoney Institutional Investor Plc.

AMM Research (known as Metal Bulletin Research outside the US) is the independent market research and consultancy arm. Utilizing our
team of US consultants and economists based in Pittsburgh, Washington and Boston, AMM Research has conducted the most exhaustive
and informative study on the US scrap industry availably anywhere.

Biographers/authors of the US ferrous scrap study
B. Levich – Consultancy & Special Projects                                R. Egge – Principal Consultant
Director of Metal Bulletin Research                                       With over 18 years of experience as a strategic consultant for the
                                                                          global metals/mining industry, Mr Egge has worked at Arthur D.
Brian covers the global steel and raw material sectors in detail. He
                                                                          Little, Accenture and Deloitte. He has significant experience in
has written numerous major reports on the global steel, raw
                                                                          helping metals and mining clients identify, quantify, prioritize and
materials, and finished product industries and has done extensive
                                                                          capture value creation opportunities. While at Arthur D Little he
consultancy and market research work for a number of major steel
                                                                          worked hand and hand with the C-suite of an integrated metals
producers and consumers as well as for financial institutions.
                                                                          company in the United States to develop a business case for the
                                                                          development of raw material reserves. Russell has a degree in
A. Craig – Principal Consultant                                           Materials and Metallurgical Engineering from the University of
                                                                          Michigan (Ann Arbor Michigan) and a Masters Science in
Alexander is principal consultant with Metal Bulletin Research
                                                                          International Management from Rensselaer Polytechnic Institute
focusing on the global metals and mining industries. He has
                                                                          (Hartford Connecticut).
worked for both McKinsey & Company and Accenture. Craig
studied economics at the University of Cambridge, where he took
a First Class degree. He subsequently undertook postgraduate
study at MIT in econometrics and public finance.

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YOUR COMPANY TYPE                                                                                                                            Lloyds TSB Bank plc, City Office, PO Box 72, Bailey Drive, Gillingham Business Park,
                                                                                                                                             Gillingham, Kent, ME8 0LS, UK
    Raw Material Supply (0003)                     Finance Companies (0271)                       Ferrous Traders (0319)
    Metal/Steel Production/                        Production (0275)                              Non-Ferrous Traders (0323)
    Processing (0027)                              Processing & Equipment (0279)                  Resource/Asset Recovery
    Fabrication/Manufacturing
    (0055)
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Other relevant Metal Bulletin Research publications include:                                                                                                                                                                         New
                                                                                                                                                                                                                                     for 2013
• A Strategic Outlook for the Global Ferrous Scrap Industry out to 2021
• Steel Scrap & Metallics Forecaster
• A New Age for Steel Metallics: for Obsolete Scrap, Prompt Industrial Scrap, Home (Revert) Scrap, Pig Iron,
                                                                                                                                                    A Strategic Outlook to
  DRI/HBI and Iron Ore                                                                                                                              the Global Ferrous Scrap
• Steel Raw Materials: Weekly Market Tracker
• Steel: Weekly Market Tracker                                                                                                                      Industry out to 2021
• Shareholder Value in the US Steel Industry A Critical Framework to Drive Future Company Performance
• Coking Coal: A Strategic Market Outlook to 2020
• A Strategic Market Review and Outlook for the Middle East and North African Steel Industry to 2020
• Mining five years of iron ore data                                                                                                                FIVE EASY WAYS TO ORDER
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Study published January 2014

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