May 15, 2017
To The Loyal Customers of Kimmel Scrap Iron & Metal
In an effort to keep you our customer informed regarding both ferrous and non-ferrous markets I send you this brief report.
It appears that we are near if not at the top of the ferrous market based on a few fundamentals. Iron Ore a staple in the steel making process continues to drag and becoming more inexpensive and oversupplied. The bad weather that was a crippling shipment of scrap across the country has abated. Export markets continue to be weak with the effect of more scrap remaining in our country and increasing everyone’s inventory. The steel mills are running around 75% of capacity and the number of automobiles manufactured for 2017 appears to be declining, reducing demand for steel sheet.
The stainless market also appears to be weakening and it does not appear that we will see any strength in the short term. A few factors affecting stainless is the Nickel and Chrome prices, substantial element in the manufacturing of stainless are at near 5% drop in value from the previous month. Both Indonesia as well as the Philippines have increased shipments of Nickel Ore which helps flood market and reduce prices.
Wishing everyone a safe and enjoyable Memorial Day Holiday.
T.J. Yarema 103