Portland, Oregon-based Schnitzer Steel Industries Inc. has reported a boost in net income during its 2021 fiscal year third quarter, which ended May 31, 2021.
The scrap metal recycling and auto salvage company, which also operates an electric arc furnace (EAF) steel mill, has reported net income of $65 million in its most recent quarter. That represents a 41 percent increase from its $46 million net income the prior quarter. One year ago, in the quarter ending May 31, 2020, Schnitzer suffered a net loss of $5 million.
“The company’s performance during the third quarter of fiscal 2021 benefited from strong demand for recycled metals globally and for finished steel products on the West Coast, with ferrous, nonferrous and finished steel selling prices reaching multi-year highs during the quarter,” states the company in a news release summarizing its earnings.
Adds the firm, “Results for the quarter reflected the operating leverage benefits from significantly higher ferrous, nonferrous and finished steel sales volumes sequentially.”
Comments Tamara Lundgren, chair and CEO of Schnitzer Steel Industries, “Our third quarter financial and operational results are Schnitzer’s best in over a decade. Prices for recycled ferrous and nonferrous metals during the quarter rose to multi-year highs, with peaks and troughs in prices at respectively higher levels than we’ve seen in the past decade. The post-pandemic economic recovery and positive structural commodity trends are contributing to the higher price levels.”
Regarding the company’s operations, Lundgren says, “During the quarter, we began ramping up production on two of our new major advanced metal recovery technology systems, with additional systems on track for commissioning by the end of this calendar year. Extracting more nonferrous metals from our shredding activities is a significant value-added process and is directly aligned with global decarbonization and demand trends. Increasing the use of ferrous and nonferrous scrap in industrial production is a great example of how ‘old economy’ tools will lead the way to decarbonization of the new economy.”
During the March to May 2021 timeframe, compared with the prior financial quarter, “Ferrous sales volumes were up 24 percent and nonferrous sales volumes were up 15 percent, both driven by strong global demand,” reports the company.
Average ferrous net selling prices were up 3 percent while those for nonferrous materials rose by 17 percent compared with the prior quarter. Schnitzer says its finished steel sales volumes rose by 12 percent and “rolling mill utilization in the quarter was 98 percent.” Average net selling prices for finished steel products were up 16 percent.