Schnitzer Steel Benefits From Recycled Metals Demand — Commodity Comment

By Sarah Coffey

Schnitzer Steel Industries Inc. on Wednesday reported third-quarter profit from continuing operations of $2.52 a share on sales of $1.01 billion amid higher sales volumes for nonferrous metals and an expansion in metal spreads on certain ferrous sales.
On global demand:

“The company’s third-quarter performance benefited from strong global demand for recycled metals and robust West Coast market conditions for finished steel products which was reflected in higher average selling prices for ferrous, nonferrous and finished steel products.”
On prices:
“Average ferrous and nonferrous selling prices in the quarter were at or near multi-year highs, while average finished steel selling prices were the highest on record.”
“Average net selling prices for finished steel products increased year-over-year by 41%, reaching all-time highs.”
On sales volume:
“Contributing to the strong performance during the quarter were higher year-over-year sales volumes for nonferrous metals and an expansion in metal spreads on certain ferrous sales contracted prior to the market price declines that occurred during the latter part of the quarter.”
On finished steel sales volumes:
“Finished steel sales volumes were down year-over-year 12%, reflecting ongoing logistics challenges, but up sequentially 27% as sales volumes benefited from an improvement in supply chain disruptions and the resolution in April of the Seattle, WA concrete industry drivers’ strike.”
Write to Sarah Coffey at sarah.coffey@wsj.com