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Metal Market Recovery Next Quarter?

July / August 2015

Iowa Auto Recyclers

Inside this issue:

Metal Market from front cover 6 Summer Outing from front cover 12 MSDS to SDS 10 NMVTIS: Code Correct Status 16 NEW Hollander CoreConnect 17 SAV Transport Discount Program 20 ARA Update 15 21

When will the steel scrap market


This is the biggest issue facing

our industry today. The crash of the steel

scrap market has put tremendous pres-

sure on automotive recyclers. In this arti-

cle we’ll attempt to gain an understanding

of the complex puzzle that makes up the

steel scrap supply and demand curve. But

first we must ask: Why did steel and steel

scrap prices fall sharply?

Steel is a cyclical industry with its fortunes

tied to several macroeconomic factors.

There are several indicators domestic and

global that investors, like U.S. Steel or

Nucor, track according to author Mark

O’Hara’s fifteen part article on the steel

industry published recently at marketreal-



Understanding the demand for steel

through consumer trends will help to pre-

dict when the metal market will be on the

road to recovery. But first we must under-

stand the supply side of the market in or-

der to gain the patience needed to ride out

the tsunami of low steel scrap prices.

Steel prices in the United States fell by

over 10% in 2014 and steel scrap fell by

about 20%. Steel is one of the world’s

most important materials used in construc-

tion, cars and all sorts of machines and

appliances. By far the biggest producer of

crude steel is China, followed by Europe-

an Union, Japan, United States, India,

Russia and South Korea. The biggest pro-

ducers of iron ore are: China, Australia,

Brazil, India, Russia, Ukraine and South

Africa. Steel Futures are traded on the

London Metal Exchange (LME).

Continued on page 6..


Summer Outing Recap

on page 12