Metals Watch

U.S. STEEL SHIPMENTS UP FOR FIRST SIX MONTHS

For the first six months of 1996, shipments of United States steel mill products are up 2.3 percent compared to shipments for the same period in 1995, according to the American Iron and Steel Institute, Washington. Through June of this year, U.S. mills shipped 50.6 million net tons of steel as compared to 49.5 million net tons during the same period in 1995.

Overall, shipments to the oil and gas segment are up 11.9 percent; construction products are up 8.7 percent; service centers and distributors report an 8.1 percent increase; the appliance, utensil and cutlery segment is up 6.2 percent; and containers, packaging and shipping materials are up 2.4 percent. Shipments to some segments are down, including machinery, industrial equipment and tools, down 15.9 percent; electrical equipment, down 6.9 percent; and shipments to the automotive industry, down 0.3 percent.

FIRMS GEAR UP TO SUPPLY TRICO

Three scrap companies are currently preparing to provide raw materials and services to the new $450 million Trico Steel Co. plant currently under construction in Decatur, Ala. Stein of Alabama Ltd., Decatur, a division of Ohio-based Stein Inc. plans to hire 70 new workers and build office and maintenance buildings at the steel mill. The company will handle raw materials and operate a dock and railroad spurs near the Trico mill.

Also, Denbo Iron & Metal Co. Inc., also of Decatur, will supply scrap to the mill. Denbo plans to hire 30 new workers and invest in a 600,000-pound auto shredder in order to increase its metal processing capacity by 8,000 tons a month. In addition, Southeastern Scrap Trading Inc., a new firm based in Birmingham, will provide scrap management, procurement and logistics services to the Trico mill. The mill, a joint venture of LTV Steel, Cleveland, Sumitomo Industries of Japan and British Steel, will have the capacity to produce 2.2 million tons of steel annually when it opens next year.

SILVER PRODUCTION TO INCREASE UNTIL YEAR 2000

Silver miners are projecting production increases for each year from now through 1999, according to the "World Silver Production Forecast," published by The Silver Institute, Washington. Silver producers are expecting a 2 percent increase in 1996 followed by 4 percent and 5 percent increases in 1997 and 1998, respectively, and a 3 percent rise in 1999. Also, if projections are met, Australian production will outpace the United States by 1999, making Australia the third largest producer in the world after Mexico and Peru.

Last year world production of mined silver was 270 million ounces. In 1999, production is expected to reach 300 million ounces.

BRITISH FIRM RECYCLES ALUMINUM DROSS

A four-step process to recover and recycle aluminum dross has been developed in Britain by Jesse Brough Metals, a manufacturer of aluminum castings in Staffordshire. The method recycles 100 percent of the dross, leaving no waste, according to Jesse Brough officials. Most other methods only recapture a portion of the dross.

In the process, the dross is crushed and fed into a special rotary furnace. Next, metal is drawn off in its molten state either to ingots or into casting pots. Finally, the remaining oxides, granules, powers and fluxes are graded and blended to become "JBM Kingsilver" grits, which are then used in the production of steel, as well as other uses.

IPSCO PURCHASES SCRAP PROCESSOR

Canadian steel giant IPSCO Inc., Regina, Saskatchewan, has announced an agreement in principal to enter into a partnership with General Scrap & Car Shredder Ltd., Winnipeg, Manitoba. The processor has been IPSCO’s main supplier of scrap for the past 10 years. Under the terms of the agreement, IPSCO will pay General Scrap owners Mel and Jack Lazareck $37 million (Canadian) – about $26 million U.S. – over five years to acquire a majority interest. The Lazareck bothers will continue to manage the company for another 10 years. The deal is expected to close in early 1997.