Metals Watch

REPORT LOOKS AT STEEL IN THE YEAR 2005

The International Iron and Steel Institute, Brussels, Belgium, recently issued a report titled “The Steel Industry in the Year 2005.” The report offers insights into the future of steel demand and the global trends affecting the steel industry.

One of the observations made is the anticipated shift in steel making capacity as the Asian-Pacific region grows to providing almost 44 percent of the world’s crude steel output. The 80-page report is available by faxing requests to IISI at (322) 726-4012 in Brussels.

FUTURE FERROUS SCRAP SHORTAGE CALLED UNLIKELY

Participants at American Metal Market’s Ferrous Scrap Forum ‘96, held last month in Chicago, agreed that an actual shortage of ferrous scrap is extremely unlikely, although demand from new minimills will remain strong and the price to obtain scrap may rise dramatically. Many also agreed that much of the scrap that was formerly exported from the United States is now being consumed domestically.

“Until the beginning of the 1990s, scrap was being exported in significant quantities out of the Great Lakes,” says Alter Goldstein, manager of international scrap for Glencore Ltd., Stamford, Conn. “But with the addition of electric furnace capacity, there has been no significant export out of the Great Lakes for the last four years with the exception of a limited amount of turnings.”

Also, both Frank Griscom, vice president of marketing and sales for Midrex Direct Reduction Corp., Charlotte, N.C., and Kent Baumgartner, director of purchasing for Georgetown Steel Co., Georgetown, S.C., predict that increased demand for low-residual scrap will result in more use of scrap substitutes such as direct-reduced iron. However, some question whether the capacity is there for DRI.

NONFERROUS OPERATION EXPANDED IN THE SOUTH

The David J. Joseph Co., Cincinnati, is expanding its nonferrous operations by adding a second location in Laurens, S.C. The new facility will be under the Frank H. Nott Co. name that was acquired by Joseph in 1991. Nott’s operation, based in Richmond, Va., includes wholesaling, processing and marketing of nonferrous scrap metals.

ALUMITECH GETS AWARD FOR RECYCLING DROSS, CAKE

Alumitech Inc., Streetsboro, Ohio, has received the 1995 Enterprise Development Inc. Award for its advances in the recovery and recycling of aluminum dross and salt cake. The annual recognition program is sponsored by several Cleveland-based organizations and honors companies whose ideas have gathered innovative products, processes and services benefitting both business and community.

Alumitech was recognized in the manufacturing category for inventing a closed-loop process for dross and salt cake to recover aluminum, salt cake and nonmetallic products that otherwise would be landfilled. Once recovered, the items are processed into useable material for a variety of products and industries.

BIRMINGHAM STEEL REAPS RECORD RESULTS

Birmingham Steel Corp., Birmingham, Ala., posted record net income of $50.6 million for its fiscal year which ended on June 30, 1995. The income represents an increase of 134 percent from net income of $21.6 million posted for fiscal year 1994. Earnings per share also increased 98 percent to $1.74, compared with $.88 per share during the same period last year.

The company set a steel shipment record of 2.4 million tons, a 12 percent increase from 2.1 million tons shipped in fiscal 1994. Birmingham also achieved record net sales of $885.5 million, an increase of 26 percent over the same period for 1994.

ERIEZ HOLDS  INNOVATION CONTEST

Eriez Magnetics, Erie, Pa., is sponsoring a contest to recognize unusual applications of its magnetic separation, vibratory conveying and screening, metal detection and metalworking products. An independent panel of judges will evaluate entries for their commercial practicality and usefulness. The first place winner will receive a trip for two to the 1996 Summer Olympics in Atlanta valued at $5,000. The trip includes airfare, lodging, attendance at events, etc.

Other prizes include multiple awards of $100 and $300 in travel coupons which can be applied to flights, lodging, sightseeing and miscellaneous travel expenses. All qualified entrants will receive a complementary gift.

All entries must be postmarked prior to midnight December 31. Winners will be announced February 29, 1996.