USA: Schnitzer posts strong sales growth in Q3FY'22 on robust steel demand

Schnitzer Steel Industries Inc, one of the largest manufacturers and exporters of recycled metal products, has come out with its third-quarter results for the fiscal year 2022.

The company's third-quarter performance benefitted from strong global demand and robust US West Coast market conditions for finished steel products. Average scrap selling price in the quarter was at or near multi-year highs, while average finished steel sales prices were the highest on record.

In Q3FY'22, the company acquired the operating assets of Encore Recycling LLC (Encore) in the greater Atlanta metro area, which ultimately increased its footprint over 24 facilities in the state.

Performance highlights-

• Ferrous scrap sales rise: Sales volumes of ferrous scrap in Q3FY'22 stood at 1.12 million tonne (mnt), an increase of 5% compared to the last quarter. Despite the delay in contracting and shipping of bulk cargoes, sales improved during the quarter.
  
  

The average selling price of ferrous scrap was $541/t in Q3 against $445/t in Q2.

• Non-ferrous sales increase: Sales volumes in FY'22 of non-ferrous scrap improved significantly by 37% to 201,000 t in Q3 as against 147,000 t in Q2. Meanwhile, on y-o-y (year-on-year) basis, sales rose by 29% from 156,000 t in Q3FY'21.
  
  

• Finished steel prices at record high: Schnitzer's average selling price of finished steel stood at $1,129/t in Q3, the highest on record. Total finished steel product sales was 135,000 t during the quarter vis-a-vis 106,000 t in Q2. Support from infrastructural projects led to strong demand during Q3.
  
  

Outlook
Positive trends in demand for recycled metals and the transition to lower carbon and more metal intensive technologies would be adopted by the company to drive ferrous and non-ferrous sales in the coming time.