Schnitzer pauses Rhode Island ferrous export dock

Schnitzer Steel will temporarily suspend business operations at its deep-sea ferrous bulk export dock in Providence, Rhode Island, as well as three other ferrous and nonferrous scrap yards in the region, effective today.

Operations at the company's Worcester, Massachusetts; Manchester, New Hampshire; and Portland, Maine; ferrous and nonferrous scrap facilities will be suspended at close of business today.

The closures come in response to the coronavirus pandemic with the Portland, Oregon-based steel producer and recycler making adjustments to its operating platform as necessary.

Schnitzer's deep-sea ferrous scrap bulk dock and mega-shredder in Everett, Massachusetts, near Boston will remain open but under adjusted hours.

Providence averaged 57,000 t/month of ferrous scrap exports in 2019, according to US customs data, much of which consists of bulk shipment's from Schnitzer's dock.

Similarly, Boston-area ferrous scrap exports averaged 65,000 t/month in 2019, with 80pc of shipments being bulk cargoes to Turkey and Peru.

Sources familiar with the situation said the Everett location will be operating only Mondays through Thursdays.

The move was unsurprising as collection had already slowed drastically in recent weeks after companies took measures to protect employees, New England scrap suppliers said.

Others noted that reduced traffic on roadways has cut the driving time between both deep-sea docks by one-third and will increase efficiency of sourcing material from the Providence region to Everett.

The move comes on the heels of other similar closures from major exporters.

Sims Metal Management temporarily stopped collections of ferrous and nonferrous scrap from third parties at some locations on the US west coast last week. The global recycler extending cutbacks on non-ferrous metal scrap buying across its global operations through April as demand plunges amid the coronavirus pandemic.

By Brad MacAulay