The US' Schnitzer Steel Industries boosted domestic ferrous scrap sales in fiscal 2014 ended August 31 to help offset decreased export demand, the company said Tuesday in releasing financial results.
Schnitzer's total US ferrous scrap export volumes declined 15% from fiscal 2013 while total sales volumes only declined 4% as the major exporter was able to increase domestic sales by 15%.
Fiscal 2014 ferrous scrap sales volumes were 4.1 million lt -- 2.8 million lt export and 1.3 million lt domestic. That compares to 4.3 million lt (3.2 million lt export and 1.1 million lt domestic) in fiscal 2013.
"We offset a decline in export sales with a large increase in domestic sales, shipping higher volumes to mills on both the East and West coast," Schnitzer CEO Tamara Lundgren said during a conference call.
By region, Schnitzer sold 44% of all ferrous tonnage to Asia, 33% to North America and 23% to Europe, Africa and Middle East.
For fiscal Q4, Schnitzer increased ferrous sales volumes 7% to 1 million lt. Export customers accounted for 70% of total ferrous sales volumes in the quarter with Turkey, South Korea and Malaysia the top three export destinations.
China was the fourth-largest foreign buyer of Schnitzer's ferrous scrap. It was Schnitzer's largest customer in the first quarter of the fiscal year, but was not among the top three buyers in the prior two quarters.
Lundgren noted a 9% increase in domestic Chinese scrap usage during the first six calendar months of 2014.
"Their leadership continues to emphasize the environment. We anticipate they will continue to increase scrap usage," Lundgren said of China.
Schnitzer reported fourth-quarter net income of $7.3 million on revenue of $691.9 million, compared to net income of $3.1 million on revenue of $637.8 million in the prior quarter.
Source: Platts
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