<article><p class="lead">US metals recycler Schnitzer Steel anticipates lower ferrous and nonferrous scrap prices to continue into the first quarter of next year.</p><p>The company today attributed falling scrap prices to slower worldwide economic growth, extended customer destocking, mill outages, and trade and regulatory challenges with China.</p><p>Schnitzer's auto and metals recycling division saw profit per ferrous ton drop by $11/t to $22/t in its fiscal fourth quarter ended 31 August, while its average ferrous sales price decreased by $51/gt to $270/gt compared to the same quarter a year ago. </p><p>Profit per ferrous ton fell by $20/t to $26/t in the fiscal year ended in August. Average ferrous sales prices declined by $28/gt to $289/gt versus the prior year.</p><p>Ferrous volumes inched down to 1.02mn t compared to 1.03mn t in the fourth quarter 2018. Ferrous volumes rose to 3.74mn t in 2019 versus 3.71mn t in 2018. Schnitzer plans to increase ferrous tonnages by 700,000t by 2021. </p><p>Schnitzer's ferrous exports represented 74pc of total ferrous sales tonnages, with Vietnam, Turkey and South Korea receiving the most shipments. </p><p>Average nonferrous sales prices decreased to $0.56/lb in the fourth quarter from $0.69/lb a year ago. For the full year, average nonferrous sales prices fell to $0.59/lb from $0.72/lb in 2018.</p><p>Nonferrous volumes for the fourth quarter declined to 160mn lbs from 167mn lbs a year earlier. Annual nonferrous volumes increased to 608mn lbs from 572mn lbs year over year. </p><p>Schnitzer will roll out upgrades to its nonferrous recovery efforts in early 2020 to improve copper recovery, and automated heavy media zorba separation that will convert zorba to furnace-ready twitch, brass, zinc, stainless steel, and copper.</p><p>Schnitzer will install the advanced recovery technology at five locations on both coasts. The installation is expected to cost $75mn-85mn, with full implementation by first half 2021. The company expects additional income of $8 per ferrous ton in the first half of 2021, and around half that in 2020.</p><p>The company's recycling segment is expected to operate at near-break even profit levels in the first quarter 2020 with ferrous ton profits expected to fall by $8/gt because of inventory accounting, lower ferrous volumes and prices, and continued declining zorba prices.</p><p>Schnitzer's steelmaking division Cascade Steel reported lower profit on the quarter, down to $6mn from $14mn a year earlier. Reduced selling prices for finished steel products outweighed increased volumes from west coast construction projects and decreased steelmaking raw-materials costs, the company said.</p><p>Steel volumes sold rose to 134,000st in the quarter, up from 127,000st a year ago. But average finished steel sales prices slid to $675/st from $741/st in the same period.</p><p>Annual volumes dropped to 478,000st from 519,000st in 2018. Averaged finished steels sales climbed to $713/st from $666/st a year ago.</p><p>Schnitzer's fourth quarter income declined to $18mn from $38mn in the prior year. Total year income fell to $84mn from $149mn in 2018.</p></article>
