Metals Producers' Optimistic Outlook Undone by COVID-19

SEATTLE (Scrap Monster):  The COVID-19 pandemic has forced several metals producers and recyclers to announce downward revision to their earnings estimate for the initial half of 2020. A majority of these companies have declared that previously announced optimistic outlook has been undone, on account of economic impacts caused by the uncontrolled spread of the virus.

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The first company to respond to the situation was the Australia-headquartered Sims Metal Management, which announced its decision to withdraw the earlier earnings outlook, on account of the tremendous decline in scrap metal volumes in the U.S., UK and Australian facilities.

Charlotte, North Carolina-based Nucor Corp., in its recent guidance statement, predicted the possibility of severe impacts on its supply chain and operations, on account of disruption in economic activity due to shutdown of major construction projects. Also, Pittsburgh-based U.S. Steel Corp. announced aggressive measures including idling of Gary and Granite City blast furnaces and downtime at its Ohio and Texas steel tube mills.

The other major companies to reduce or halt production include Aleris and a handful of secondary aluminium producers including Audubon Metals, Real Alloy, Spectro Alloys and Superior Aluminum.