Scrap Expo 2023: Examining the dynamic between steel producers, metals recyclers

The steel manufacturing industry has witnessed a notable transformation driven by the rise of electric arc furnace (EAF) steel production. As these producers have risen to prominence over the past several decades, their involvement in the metals recycling business has grown, reshaping the dynamics of steel production.

That shifting dynamic between steel producers and metals recyclers is an evolving topic of discussion, one the Recycling Today Media Group will cover at this year’s Scrap Expo.

“We thought it important to flesh this topic out in a session which included industry leaders, each with unique perspectives,” says Jim Keefe, publisher of the Recycling Today Media Group. “Over the last couple decades, as EAF steel producers have increased their presence in the steel manufacturing industry, they’ve continued to enter the metals recycling business in order to control their supply chain.”

American steelmaker Nucor Corp., based in Charlotte, North Carolina, historically has engaged in this method of vertical integration by acquiring and operating its own recycling facilities. The acquisition of the David J. Joseph Co. (DJJ) created a platform Nucor used to continue growing its footprint in the recycling markets, gaining access to established networks, expertise and infrastructure in the scrap metal industry.

The strategic acquisitions made by Nucor not only have secured a reliable raw material source, streamlined production processes and reduced costs, but changed the nature of the industry. More recently, Australia-based steelmaker BlueScope Steel Ltd., after venturing into the Midwestern scrap business through the acquisition of Fort Wayne, Indiana-based metal recycling and trading firm MetalX’s ferrous scrap business, reports contentment with their EAF capacity expansion.

The expansion of EAF capacity, while it’s had the biggest impact, is just one example of how the industry has evolved and changed. These changes will be discussed at Scrap Expo during the session "Consolidation and Steel Industry Vertical Integration—How the Scrap Business Has Evolved." This panel discussion brings together industry veterans to explore the evolution of the metals recycling business and the significant impact of steel industry vertical integration.

John Sacco, president and co-owner of Sierra International Machinery and host of the "Pile of Scrap" podcast, will moderate the panel, which includes industry leaders Jay Robinovitz, CEO of St. Louis-based Alter Trading Corp.; Danny Rifkin, president and CEO of MetalX; George Adams, CEO of Orange, California-based SA Recycling; and Kevin Gershowitz, vice president of New York-based Gershow Recycling. Attendees can expect a thorough discussion on vertical integration and its implications on the industry. 

Recycling Today’s Scrap Expo takes place Sept. 12-13 in Louisville, Kentucky. The event features live, hands-on demonstrations and the opportunity to operate machinery, panel discussions covering commodity markets and industry trends and operational sessions on yard operations and machinery maintenance and management.

Registration for Scrap Expo is open, and more information about the event can be found here.