I don't know why they decided on Durant. It's not too far away from the scrap sources at CMC, it's closer to the Midwest markets. And it's further away from the seaports where cheap material from overseas arrives.
We have to see if that's enough. Seguin can profit from building the Donald's wall. (I'm not being serious)
And I forgot : 25% of the POTENTIAL production. And production is most likely several years down the road.
So for now it's 25% of NOTHING
You can have all the Nobium you want, but please call it Niobium. Probably a good deal for the folks at Cometals. But in the past they have several exclusivities that tanked. Such as Mischmetal.
With 25% you will be very dependent at what levels and where the other 75% will be sold.
Do they have an obligation to purchase the 25% regardless ? Where are they allowed to sell it ? When is production coming on stream and what quantities ?
Rumors have it that Amazon, after crushing all the Mom and Pop stores, will want to trash the steel business.
How and when "Order your rebar on Amazon" will start, depends on the developments in the transportation industry.
Delivery by drone will not cut it and the UPS and Fedex drivers union already announced they will not make door deliveries. The USPS also sees difficulties in making deliveries, unless rebar can be delivered in 1ft length and no more than 10 pieces per package.
Left, right, down the middle, down the drain. Usually you tell us it's set to double.
Man I can't bear the anticipation.
Only at times when certain alloying elements are high priced do they come into consideration. For regular steel scrap it never was a point of discussion. The cost of sorting based on alloys only pays when sorting high temperature scrap for vacuum melting.
At lot has changed since the 70's. But there was one reason why CMC lost money before they changed the system. With the yards being responsible for their own profits, the old style managers did hide stock from the main office, ferrous or non-ferrous. Bailouts when trading went short and the yards came up with "sudden" material. And trading getting stung when the market went in the other direction. Rabin changed that.
At that time Dallas ran a pretty lean office. Don't think I could point out a singe "non-productive". Or maybe I could point to one department head, who had hoped to replace Charlie, but didn't.
It's not the first time this is happening. The length of the line of pick-ups at American Iron is a good indication if the price is too low. But it is still a question of supply and demand. There is always money to be made in the scrap trade.