Stock Research and Analysis

by Andrew Lane

Bulls Say

An incremental buildout of global electric arc furnace steel production capacity will support ferrous scrap demand.
A focus on energy efficiency and reduced carbon emissions in China has caused the world's largest steelmaking country to strive for greater substitution of scrap for less environmentally friendly steelmaking inputs.
Access to deep-water ports provides Schnitzer with the ability to gain the best price for its scrap sales. Read more 

Bears Say

Minimills are developing new technologies to use more direct-reduced iron and pig iron and less scrap metal to provide incremental iron units to their raw material mix.
The U.S. scrap market is vulnerable to volatile demand trends in China. Longer term, slower Chinese economic growth could cause scrap demand growth to decelerate.
There is a risk of too much available shredding capacity in the market as the domestic shredder count remains high but tight scrap flows have depressed the returns they can generate. Read more 

Management

Tamara Lundgren was named CEO in November 2008 as global steel production was falling, major stock indexes were plummeting, and the global financial crisis had reached a fever pitch. When she took the reins, Schnitzer’s share price had fallen 75% over   Read more 

Profile

Schnitzer Steel is one of the largest ferrous and nonferrous scrap metal recyclers in the U.S. and a primary exporter of scrap metal to other parts of the world. Its metal   Read more 

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