To the loyal customers of Kimmel Scrap Iron & Metal.
This past March I had written of how the scrap steel market had strengthen over the past couple of
months but we were a bit unsettled about future growth. We were looking at mils order books being strong and strong export markets for Countries like Turkey and Asia. The last 30 days we have seen a significant decrease in demand for our scrap delivered to their ports. Turkish prices have dropped over $50.00 per net ton over the last 30 days. Buyers overseas are trying to wait and see how low these prices will decline.
The dramatic rise in interest rates hurt everyone including secondary steel warehouses who need to cover their steel warehouse costs for steel that has dropped in value and cost of borrowing has risen. You our customers also can see the costs of most items have risen on most every item from food to new equipment.
Political unrest around the world is having effects on everything we do. Currently we are seeing a rise in the oil freighters being hijacked and contents either stolen or ransomed. The most recent group of hijackers are Somali and operating in the South America and South of the Red Sea.
One other item to view is the increase in Pig Iron, Direct Reduced Iron and Hot Briquetted Iron. These three items are a direct substitute for scrap iron. During the month of April we have seen over 400,000 metric tons of scrap metal substitute arriving from both Brazil and Ukraine.
All this information is a guide to what we look at on a continuing basis to look globally and domestically and try to react accordingly. As I have mentioned before I am proud to have the staff here that has not only my back covered but you as well. Please contact any of our team members for questions or comments. We are here to serve you.
Ken Schutt -102
T.J. Yarema 103