Ferrous demand lifts PSC in 1Q

Ohio-based metals recycler PSC Metals boosted sales and doubled its profit to $4mn in the first quarter from a year earlier on higher ferrous shipments and prices.

The Icahn subsidiary's sales increased by 15pc to $118mn from the prior-year period when it generated a profit of $2mn.

Ferrous shipment volumes increased on strong demand from domestic steel mills and improved flows of scrap into PSC's yards. The company did not provide data on volume or prices.

PSC operates more than 30 scrap metal processing and trading locations in seven US states, primarily in the midwest, Ohio valley and southern regions.

Revenue at Ferrous Resources, Icahn's Brazilian iron ore mining company, fell to $20mn from $33mn in the same period a year earlier. The company generated a loss of $6mn in the first quarter compared with profit of $6mn in the prior-year quarter.

Ferrous Resources has been focusing its sales on Brazil, where margins are the highest, Icahn said.

The company did not provide volume or pricing data, but said that iron ore prices have recovered significantly on strong demand from China. Still, discounts on impurities in iron ore fines are impacting its net realized price in Brazil, the company said.

Ferrous Resources has certain rights to iron ore mineral resources in Brazil and develops mining operations and related infrastructure to produce and sell iron ore products to the global steel industry. The company has significant iron ore assets in the state of Minas Gerais and mineral rights near Jacuipe in the state of Bahia.