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Metals Monitor

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  • 1 September 2014 Metals Monitor


    Metals Monitor,d.cGU&psig=AFQjCNER3UZbswJmsx4LU

  • 1 September 2014 Metals Monitor

    1 Trend Tracker

    Ferrous: NOLVs remained relatively

    consistent due to minimal pricing volatility

    over the past six months.

    Non-ferrous: NOLVs increased due to price

    increases for aluminum, lead, zinc, and nickel

    in the summer months.

    Ferrous: Sales were mixed due to higher

    prices for some products and flat to lower sales


    Non-ferrous: Sales were mixed due to higher

    prices for aluminum, nickel, and stainless steel,

    as well as fluctuations in copper price trends.

    Ferrous: Gross margins increased due to price


    Non-ferrous: Gross margins were mixed due

    to a tight spread between prime aluminum and

    scrap pricing, higher margins for nickel and

    stainless steel due to price increases, and

    volatile copper margins.

    Ferrous: Inventory levels remained consistent,

    as the seasonal summer slowdown inhibited

    speculative buying and stocking.

    Non-ferrous: Inventory levels remained

    consistent as companies managed inventory

    levels relative to price fluctuations.

    Ferrous: Prices were consistent, as

    fluctuations in scrap pricing remained within a

    range of $10 per gross ton over the past four

    months, reducing the pricing pressure placed

    on downstream products.

    Non-ferrous: Pricing increased due to price

    increases for aluminum, lead, zinc, nickel, and

    stainless steel, with volatile prices for copper.

    Ferrous Metal Non-Ferrous Metal


    Sales Trends

    Gross Margin



  • 2 September 2014 Metals Monitor

    2 Overview

    Over the summer, the demand outlook for steel brightened

    slightly, although the steel market remains clouded by excess

    capacity and economic uncertainty. Meanwhile, supply

    pressures boosted prices for many base metals in recent months.

    In the U.S., prices for flat rolled coil and rebar

    slipped in June amid the seasonal summer

    slowdown. Hot rolled coil prices recovered in

    July, joined by cold rolled coil prices in

    August, while rebar prices held firm. Plate

    pricing, meanwhile, continued its steady

    ascent. Steel buyers demonstrated healthy

    demand despite a high level of imports.

    However, shifts in the economic or political

    landscape, as well as the announced addition

    of steel capacity through 2020, could pose a

    threat to the domestic steel market.

    Base metals have experienced tightness in the

    physical markets due to supply and demand

    factors, lifting prices for aluminum, zinc, and

    lead more than expected.

    The elevation in prices may be short-lived,

    however, as the volumes of metals held in

    and out of official exchange warehouses

    distort the physical markets. In addition,

    demand remains tepid, and supplies of base

    metal scrap are readily available, with the

    exception of stainless steel scrap.

  • 3 September 2014 Metals Monitor

    3 Overview

    The automotive industry is a significant consumer of steel

    and aluminum. Auto sales climbed throughout the

    summer, buoyed by a perfect storm of seasonal incentives,

    higher demand for trucks and SUVs, easier accessibility to

    credit, new product offerings, lower gas prices, and

    improvement in the economy.

    In August 2014, overall auto sales increased 5.5% year-

    over-year, with one less selling day to boot. Moreover, the

    industrys annualized selling rate reached 17.5 million

    vehicles, according to Autodata, marking the highest level

    in nearly eight years and returning the industry to pre-

    recession levels. Of the Big Three Detroit automakers,

    Chrysler Group LLC posted the best results, with a 20%

    sales increase in August. Meanwhile, Ford Motor

    Company experienced flat year-over-year sales, while

    General Motors Companys sales slipped 1%. Asian

    automakers fared better, with most registering sales

    increases. Analysts are optimistic auto sales will continue

    to grow at a healthy pace through the end of 2014.

    The Institute for Supply Managements purchasing

    managers index (PMI), an indicator for manufacturing

    activity, has generally increased in recent months. The

    PMI rose 1.9 points from 57.1 in July to 59.0 in August,

    marking the highest reading in the last year, while the

    lowest reading of 51.3 was registered in January.

    A reading above 50 indicates the manufacturing economy

    is generally expanding, while a reading below 50 reflects

    general contraction. The manufacturing sector has

    expanded for the 15th consecutive month. A PMI above

    42.2 over a period of time typically denotes an expansion

    of the overall economy. The August PMI therefore

    demonstrated growth in the overall economy for the 63rd

    consecutive month.

    The Baker Hughes Rig Count tracks active rigs engaged in

    the exploration of oil and natural gas, and is a leading

    indicator of demand for metal products used in drilling,

    completing, producing, and processing hydrocarbons.

    U.S. rig counts have increased over the past year, with

    year-over-year gains for the vast majority of weekly

    counts. Canadian rig counts have been more volatile,

    although they have also mostly increased year-over-year.

    As of September 5, 2014, the U.S. rig count totaled 1,925

    rigs drilling for oil or gas, increasing by 11 rigs from the

    prior week and up by 158 rigs from the same week in

    2013. Although demand is strong for both crude oil and

    natural gas, the number of oil rigs has increased in recent

    years, while the number of natural gas rigs has been

    falling since mid-2011 due to efficient drilling methods

    that require fewer rigs for the same amount of

    productivity. In addition, oil prices have remained above

    the $90 per barrel throughout 2014 to date, supporting oil

    drilling and a high oil rig count.

    Month Seasonally Adjusted PMI

    August 2014 59.0

    July 57.1

    June 55.3

    May 55.4

    April 54.9

    March 53.7

    February 53.2

    January 2014 51.3

    December 2013 56.5

    November 57.0

    October 56.6

    September 56.0

    August 2013 56.3










    Rig Count





    September 5, 2014 1,925 158 414 25

    August 8 1,908 130 213 29

    July 3 1,874 117 309 95

    June 6 1,860 95 214 62

    May 2 1,854 90 163 42

    April 4 1,818 80 235 29

    March 7 1,792 40 587 7

    February 7 1,771 12 621 (10)

    January 10, 2014 1,754 (7) 477 (54)

    December 6, 2013 1,775 (25) 402 (4)

    November 1 1,742 (58) 394 11

    October 4 1,756 (81) 361 (11)

    September 6 2013 1,767 (97) 389 44

  • 4 September 2014 Metals Monitor

    4 Recent Appraisal Trends

    Appraisals valuing metals inventory typically rely on

    market prices, which are affected by input costs,

    supply levels, and demand from metal-consuming

    industries such as the automotive, industrial, and oil

    and gas drilling sectors.

    Based on industry trends, NOLVs for ferrous metals

    remained relatively consistent due to minimal

    pricing volatility over the past six months. NOLVs

    for non-ferrous metals increased, as supply-side

    pressure drove up pricing for aluminum, lead, zinc,

    and nickel throughout the summer months, while

    other base metal prices were fairly volatile.

    Sales of ferrous inventory were mixed, with no major

    shift in demand for downstream products. Higher

    prices this year versus last year helped stabilize

    dollar sales trends, while sales volumes remained flat

    to down. A number of companies expect demand

    increases from the construction market in the third

    quarter. Sales of non-ferrous inventory were also

    mixed, as increases in aluminum, nickel, and

    stainless steel pricing drove up dollar sales trends for

    these metals versus last year, while copper sales

    trends continue to fluctuate with pricing. However,

    there were no major changes in sales volume trends.

    Gross margins increased for ferrous metals as a result

    of continued price stabilization, allowing mills and

    distributors to rely on stable inventory costs and

    maintain margins. Gross margin trends for non-

    ferrous metals were mixed due to global pressures.

    Continued increases in aluminum prices have

    allowed companies to boost selling prices, but a tight

    spread between prime aluminum and scrap pricing

    has hindered gains in margin. Meanwhile, nickel

    and stainless steel margins have gained steam from

    price increases, while copper margins remain


    Inventory levels for ferrous metals were consistent,

    as the seasonal summer slowdown inhibited

    speculative buying and stocking. However, moving

    into the fall season, restocking will begin to take

    place in the market. Inventory levels for non-ferrous

    metals also remained relatively consistent, as

    companies continue to manage inventory levels

    relative to pricing fluctuations.

    Prices for ferrous metals were consistent, as

    fluctuations in scrap pricing remained within a range

    of $10 per gross ton over the past four months,

    reducing the pricing pressure placed on downstream

    products. Despite slight downward pricing pressure

    for flat rolled coil products in certain months, the

    declines were slight, as were the recent increases.

    Plate and pipe/tube pricing have experienced slight

    price increases over the past six months, while rebar

    pricing remained largely unchanged.

    Prices for non-ferrous metals increased domestically

    due to tight supplies and anticipated demand

    increases for aluminum, as well as tight nickel

    supplies, which boosted pricing for both nickel and

    stainless steel. Supply pressures also buoyed pricing

    for lead and zinc in recent months. While copper

    exhibited volatile prices, there had been no major

    movement in the past few months.

    For commodity-based appraisals, the gross recovery

    rates are based on discounts from market pricing.

    Specialized grades, sizes, and forms of metals with

    limited distribution channels typically require

    increased discounts off market price, or may be sold

    at scrap market value. GA recognizes recovery

    values are unique for each company based on

    costing, gross margin trends, inventory mix and

    levels, and other company-specific factors. In

    addition, as market prices are volatile, a change in

    metals market price trends would have an impact on

    recovery values.

  • 5 September 2014 Metals Monitor

    5 Carbon Steel

    Shredded carbon steel scrap prices averaged $380 per

    gross ton in August 2014, rising slightly from $378 the

    prior month and remaining above the August 2013

    average of $373. After declining in May and June

    during the seasonal summer slowdown, shredded

    carbon steel scrap prices increased in July and August

    as demand strengthened in advance of the fall

    restocking season. However, scrap prices remained

    relatively consistent overall, as they only fluctuated

    within a range of $10 per gross ton over the past four


    Moving into September, scrap prices demonstrated a

    sideways price trend despite expectations of a price

    increase of $5 to $10 per gross ton. Some market

    sources cited lower demand due to scheduled

    maintenance outages as a driver of flat pricing, while

    others indicated prices stagnated as the supply of

    prime, shred and plate, and structural scrap currently

    exceeds demand levels.

    Also contributing to the stable pricing were a lack of

    exports and a major sale by a northeast shredder, which

    sold its entire monthly tonnage to a mill-owned broker

    in early September at sideways pricing, according to

    Steel Business Briefing.

    In the week ended August 30, 2014, domestic raw steel

    production totaled 1,913,000 net tons, slipping 1.0%

    versus the prior week but increasing 3.0% from the

    same week in 2013. The American Iron and Steel

    Institute reported that capability utilization reached

    79.5%, down from 80.3% the previous week but up from

    77.6% the prior year.

    Adjusted year-to-date production through August 30,

    2014 totaled 64,108,000 tons at a capability utilization

    rate of 77.2%, increasing 0.7% from 63,675,000 tons

    during the same period in 2013, when the capability

    utilization rate was 76.9%. Utilization rates above 80%

    typically denote optimal profitability.

    Week Ended Production Change vs.

    Prior Year

    January 4, 2014 1.82 0.6%

    February 1 1.80 (1.9%)

    March 1 1.86 (0.7%)

    April 5 1.76 (3.9%)

    May 10 1.83 0.5%

    June 21 1.85 3.1%

    July 17 1.90 2.2%

    August 30, 2014 1.91 3.0%

    Year-to-Date 64.11 0.7%










    Shredded Carbon Steel ScrapNorth America Domestic Delivered MillMonthly Average Price Per Gross Ton

    August 2013 To August 2014

  • 6 September 2014 Metals Monitor

    6 Carbon Steel

    Hot rolled coil steel prices averaged $681 per net ton in

    August 2014, rising from $675 the prior month and

    remaining above the August 2013 average of $659. Cold

    rolled coil steel prices averaged $801 per net ton in

    August 2014, up from $799 in July and remaining above

    the August 2013 average of $765.

    Market sentiment remained in flux in the early summer,

    with tepid demand, steady end-user offtake, sufficient

    stock levels, and slight de-stocking in advance of the

    seasonally slower summer months. After falling in

    June, hot rolled coil prices increased in July and August,

    aided by US Steels price hike of $25 per net ton

    announced at the beginning of July. After slipping in

    June and July, cold rolled coil prices increased slightly

    in August.

    However, prices shifted downward in the first week of

    September. Hot rolled coil pricing in particular has

    been adversely impacted by high inventory levels and

    import pressure, according to Steel Business Briefing, as

    well as year-end inventory taxes that have spurred

    some Southern distributors to unload inventory in


    Flat rolled pricing is beginning to stabilize due to

    improved end-markets and planned fourth-quarter

    outages at two or more major mills. In addition, mills

    are considering a small base price increase in mid-













    Hot Rolled Coil and Cold Rolled CoilNorth America Domestic FOB U.S. Midwest Mill

    Monthly Average Price Per Net TonAugust 2013 To August 2014

  • 7 September 2014 Metals Monitor

    7 Carbon Steel

    A36 steel plate prices averaged $850 per net ton in

    August 2014, inching up from $847 per net ton in July

    and remaining above the August 2013 average of $711.

    Steel plate prices have been rising since late 2013 due to

    strong demand, which has more than offset an influx of

    plate imports and resulted in extended lead times

    throughout 2014, according to Steel Business Briefing.

    Plate prices continued to increase in early September.

    Despite the unrelenting flow of imports, plate producers

    are confident their most recent price hikes will be

    absorbed by the market, as demand seasonally rises at

    the start of the fourth quarter.

    Plate imports have averaged over 100,000 metric tons

    per month this year.

    In July, preliminary U.S. cut-to-length plate imports

    totaled 132,871 metric tons, decreasing 12% from Junes

    final import total but still more than double the July

    2013 import level. In early September, import offer

    prices ranged from $740 to $760 per net ton, CIF

    Houston, remaining below domestic pricing.











    Steel Plate (A36)North America Domestic FOB U.S. Midwest Mill

    Monthly Average Price Per Net TonAugust 2013 To August 2014

  • 8 September 2014 Metals Monitor

    8 Carbon Steel

    Prices for rebar, FOB Midwest mill, averaged $645 per

    net ton in August 2014, remaining consistent with the

    prior month as well as the prior year. Pricing remained

    steady in April and May, then fell in June due to

    pressure from lower-cost imports before leveling off in

    July and August. An attempted mill price increase

    failed to gain traction in the market in August, and

    summer construction activity remained lackluster.

    However, rebar prices in the Southeastern U.S. trended

    upward by $10 to $20 per net ton, according to Steel

    Business Briefing. Rebar prices began to climb in early

    September, supported by strong demand and tighter

    supply in the Midwest.

    But the September 9th ruling by the Department of

    Commerce (DOC) on the rebar trade case could cause

    a shift in the market.

    The DOC dropped a preliminary decision to impose

    anti-dumping duties on steel rebar imports from

    Turkey, although it confirmed duties of 20.6% to 66.7%

    on Mexican material.

    The DOCs failure to find dumping against Turkish

    rebar companies shocked the Rebar Trade Action

    Coalition, which filed the trade lawsuit last year and

    accused Turkey and Mexico of selling rebar at unfairly

    low prices, according to Reuters. The coalition is

    comprised of major steel producers Nucor Corp., Byer

    Steel, Cascade Steel, Commercial Metals Co., and

    Gerdau Long Products North America. It remains to be

    seen how the ruling impacts the domestic rebar market.

    I think they [Turkish sellers] will try to push the

    market a little bit up, too, surmised one rebar trader, as

    reported by Steel Business Briefing. They know that

    prices have gone up a little bit here. When they dont

    get the orders, they will go the other way.









    Long Products/RebarNorth America Domestic FOB U.S. Midwest Mill

    Monthly Average Price Per Net TonAugust 2013 To August 2014

  • 9 September 2014 Metals Monitor

    9 Tin

    The market price for tin on the

    London Metal Exchange

    (LME) averaged $10.11 per

    pound in August 2014,

    slipping from $10.15 in July but

    remaining above the August

    2013 average of $9.81. Tin

    prices have been declining over

    the past several months due to

    an oversupply in China and

    rising exports from Indonesia,

    and prices continued to trend

    downward in early September.

    However, although tin prices are slated to remain low into the fourth quarter of 2014, the International Tin Research

    Institute (ITRI) anticipates a sharp increase over the next three to four years due to an expected shortage. The ITRI

    projects a cumulative deficit of over 60,000 metric tons through 2018, in spite of slowing usage growth, due to a lack of

    investment in new supply. In the longer term, the ITRI expects the tin market will expand as demand rises for tin

    chemicals and tin used in energy-related applications.

    The LME market price for lead averaged $1.01 per pound in August 2014, increasing from $0.99 the prior month and

    the prior year. Lead prices have been rising over the past several months due to a global deficit for refined lead.

    According to preliminary data from the International Lead and Zinc Study Group (ILZSG), global demand for

    refined lead metal exceeded supply by 12,000 tons in the first four months of 2014, with total reported stock levels

    falling by 33,000 tons over the same period. However, lead prices slipped slightly in early September.













    Tin LME Monthly Average Price Per PoundAugust 2013 To August 2014











    Lead LME Monthly Average Price Per PoundAugust 2013 To August 2014

  • 10 September 2014 Metals Monitor

    10 Zinc

    The market price for zinc on

    the LME averaged $1.06 per

    pound in August 2014, rising

    slightly from the prior month

    and remaining above the

    August 2013 average of $0.86.

    Pricing continued to inch up

    in early September. Zinc

    prices have increased nearly

    25% over the year to a three-

    year high, fueled by

    improvement in the industrial

    sector for China, which

    accounts for 44% of global consumption of refined zinc, as well as a supply deficit.

    According to Goldman Sachs, zinc production is slated to fall short of demand this year for the first time since 2007,

    with several major mines (equal to 7% of global production) scheduled to close next year. Any replacement mines

    would be fewer in number and much smaller by comparison. In addition, the ILZSG indicated global zinc demand

    climbed 7.7% in the first six months of 2014 to 6.8 million metric tons, as new demand for galvanized steel (steel coated

    with zinc) has ramped up amid a rebound in the U.S. property market and rising global auto sales.

    The LME market price for copper averaged $3.18 per pound in August 2014, down from $3.22 the prior month and

    $3.26 the prior year. Prices continued to erode slightly in early September. Copper prices have fluctuated in recent

    months as hedge funds, commodity trading advisors (CTAs), and other financial participants made strategic purchases

    in the second quarter, and fund profit taking also accounted for certain price drops in the third quarter. In addition, the

    slowdown in the economy of China, the worlds largest copper consumer, has had a negative impact on the market

    given Chinas sluggish property and service sectors.

    Despite lower copper demand, premiums remain steady, and the outlook for the remainder of the year is brightening.

    Glencore PLC recently forecasted

    strong copper demand from both

    China and the West, given

    another anticipated Chinese

    economic stimulus as well as


    manufacturing data from the

    U.S., the worlds second-largest

    copper consumer. U.S. copper

    demand is projected to grow by

    4.4% this year, according to

    Morgan Stanley, marking the

    fastest pace since 2010.









    Zinc LME Monthly Average Price Per PoundAugust 2013 To August 2014









    Copper LME Monthly Average Price Per PoundAugust 2013 To August 2014

  • 11 September 2014 Metals Monitor

    11 Aluminum

    Prices for P1020 primary

    aluminum ingot averaged $1.12

    per pound in August 2014,

    rising from $1.08 the prior

    month and remaining above

    the August 2013 average of

    $0.94. Aluminum prices have

    climbed more than 9% since the

    beginning of 2014 and

    continued to increase in early

    September due to declining

    stockpiles, shortages of

    extruding grades of prompt

    material, and expected deficits.

    Tight supplies and costly

    freight rates also boosted U.S. premiums for grade P1020 ingot beyond the $0.20-per-pound level in August.

    China has reported plans to reduce aluminum production, and Russian-based United Company RUSAL (the worlds

    largest aluminum company) announced plans to keep its production below capacity for the remainder of the year. The

    company foresees higher aluminum prices in the coming months.

    Nickel prices on the LME averaged $8.43 per pound in August 2014, declining from $8.64 per pound in July but

    remaining above the August 2013 average of $6.48. After rising through much of the first half of 2014 amid the

    Indonesian nickel ore export ban, nickel prices fluctuated in recent months as the market oscillated between concerns of

    rising nickel stocks at LME warehouses and a possible nickel deficit as the effects of Indonesias export ban become felt.

    Indonesia accounts for more than 20% of global nickel supply.

    Nickel stocks at LME warehouses have continued to rise, increasing 26% since the start of the year to reach 331,064

    metric tons in early September. U.S. investment bank Goldman Sachs indicated the buildup of nickel stocks primarily

    reflects a moving of stock from an Australian stockpile and from Chinese bonded warehouses.

    The bank anticipates a much smaller

    nickel surplus in 2014 than last year,

    although prices are expected to rally

    into 2015.

    However, Goldman Sachs believes

    nickel prices will likely be driven

    higher during the turn of the year and

    in early 2015, once high-grade nickel

    ore stocks run out in China.









    P1020 Primary Aluminum IngotDelivered U.S. Midwest

    Monthly Average Price Per PoundAugust 2013 To August 2014








    Nickel LME Monthly Average Price Per PoundAugust 2013 To August 2014

  • 12 September 2014 Metals Monitor

    12 Stainless Steel

    Stainless steel prices have risen through much of the

    year due to modest growth in most major end-use

    sectors, but slowed in recent months. In August, the

    prices for grades 301 (7%) and 304 (8%) stainless steel

    inched up slightly to $1.41 and $1.51 per pound,

    respectively, versus the prior month, while pricing for

    grade 316 stainless steel declined to $2.08 per pound; all

    three grades remained above August 2013 price levels.

    However, prices for all three grades declined in

    September due to a drop in raw material surcharges of

    $0.01 to $0.02 per pound.

    Market participants expect stainless steel prices to

    increase as major domestic mills announced base price

    hikes for October. In addition, Christopher Plummer of

    Metal Strategies, Inc. forecasts underlying stainless steel

    demand will grow 3% to 5% for this year as a whole,

    with increased growth in 2015. However, some feel the

    current market remains relatively stable.

    The markets so-so. I dont think demand is huge, but

    its not horrible, said one west coast distributor, as

    reported by American Metal Market. Were seeing

    decent things out here. Summer was pretty strong. It

    wasnt as good as the first quarter, but it held pretty

    strong. Its not on fire, but its steady.













    Stainless Steel Flat Rolled CoilMonthly Average Base Selling Price Per Pound

    Less Discounts, Including SurchargesAugust 2013 To August 2014

  • 13 September 2014 Metals Monitor

    13 Metals Reference Sheet

    YEAR AGO JUNE 2014 JULY 2014 AUGUST 2014

    AUTO SHRED $367/GT $368/GT $373/GT $375/GT

    HMS (HEAVY MELT STEEL) $351/GT $363/GT $363/GT $363/GT

    BUSHLING $410/GT $397/GT $397/GT $397/GT


    YEAR AGO JULY 2014 AUGUST 2014 JUNE 2014

    HOT BANDS $656/NT $670/NT $674/NT $672/NT

    COLD ROLLED $762/NT $792/NT $790/NT $798/NT



    YEAR AGO JUNE 2014 JULY 2014 AUGUST 2014

    PLATE COILS AND STRIP MILL COILS $645 - $670/NT $645 - $670/NT $645 - $670/NT $650 - $675/NT



    CARBON STEEL $720/NT $841/NT $860/NT $862/NT

    ALLOYS PLATES $1,220/NT $1,220/NT $1,220/NT $1,220/NT




    JUNE 2014


    JULY 2014


    1/2 X 4 FLATS* $760 Avg/NT $815 Avg/NT $815 Avg/NT $815 Avg/NT

    2 X 2 X 1/4 ANGLES* $755 Avg/NT $815 Avg/NT $815 Avg/NT $815 Avg/NT


    #3 TO #5 SIZES $645 Avg/NT $650 Avg/NT $680 Avg/NT $675 Avg/NT


    (FOB MIDWEST MILL) $740 - $770/NT $775 - $805/NT $775 - $805/NT $775 - $805/NT

    *Variances include East to West Coast markets and variances in rebates.

    *Depending on thickness limits and subject to grade extras up to $600/NT

  • 14 September 2014 Metals Monitor

    14 Metals Reference Sheet

    YEAR AGO JUNE 2014 JULY 2014 AUGUST 2014

    ALUMINUM (LME VALUES) $0.8232/LB $0.8321/LB $0.8824/LB $0.9209/LB


    (HIGH GRADE P1020) $0.9364/LB $1.0241/LB $1.0805/LB $1.1234/LB


    (MIDWEST PREMIUM) $0.1120/LB $0.1930/LB $0.1988/LB $0.2035/LB


    LME VALUES $1.0280/LB $1.1200/LB $1.1200/LB $1.1120/LB


    YEAR AGO JUNE 2014 JULY 2014 AUGUST 2014

    NICKEL, LME VALUES $6.4783/LB $8.4248/LB $8.6411/LB $8.4258/LB


    LME VALUES $3.2578/LB $3.0872/LB $3.2226/LB $3.1754/LB


    YEAR AGO JULY 2014 JUNE 2014 AUGUST 2014

    J55 ERW 4 1/2 TO 8 5/8 $1,150 - $1,170/NT $1,200 - $1,250/NT $1,170 - $1,200/NT $1,200 - $1,250/NT

    LINE PIPE ERW 4 BLACK $920 - $930/NT $935 - $945/NT $925 - $935/NT $935 - $945/NT

    YEAR AGO JUNE 2014


    JULY 2014


    AUGUST 2014


    HOT ROLLED 1000 1










    HOT ROLLED 4100 1






















  • 15 September 2014 Metals Monitor

    15 Metals Reference Sheet

    (Product prices using current average distributor discount)

    0.044 X 48/60 WIDE


    JUNE 2014


    JULY 2014


    AUGUST 2014


    T304* $1.2514/LB $1.5126/LB $1.5073/LB $1.5138/LB

    T316/316L* $1.6819/LB $2.0835/LB $2.1066/LB $2.0768/LB

    *The above changes in product prices are driven by changes in monthly elemental metallic surcharges. These are most heavily impacted by

    changes in nickel values but result from the combined impact of nickel, chrome, molybdenum, titanium, ferrous scraps, and energy (natural

    gas). Surcharges are established from the monthly averages of the elements two months prior to the affected month.

    YEAR AGO JUNE 2014 AUGUST 2014 JULY 2014

    T304/304L $0.6354/LB $0.8966/LB $0.8978/LB $0.8913/LB

    T316/316L $0.8839/LB $1.2855/LB $1.2788/LB $1.3086/LB












    LME Copper Warehouse StocksMonthly Average Metric Tons

    August 2013 Through August 2014









    LME Aluminum Warehouse StocksMonthly Average Metric Tons

    August 2013 Through August 2014

  • 16 September 2014 Metals Monitor

    16 Experience

    GA has worked with and appraised a number of companies within the metals industry, including industry leaders in

    steel and aluminum production and processing. GAs extensive record of metals inventory valuations also features

    appraisals for companies throughout the entire metal supply chain, including foreign and domestic metal- and steel-

    producing mills; metal converters that produce tubing and pipe, as well as expanded, grating, and perforated metal

    types; metal service centers/processors as well as distributors; structural and custom fabricators and stampers;

    manufacturers that utilize metals as raw materials; and scrap yards, recyclers, dealers, and brokers.

    Over the past six months, GA performed appraisals of

    companies with annual revenues ranging from $18.7

    million to $2.8 billion, including the following sampling:

    A supplier of metal inputs to ferrous foundries;

    A manufacturer of high-quality light gauge common

    alloy sheet, foil, and coated aluminum products;

    An importer and master distributor of industrial

    stainless steel and nickel alloy products;

    A major UK producer of long steel products;

    A producer of calcined petroleum coke;

    A distributor of mill-length and processed steel;

    A producer of carbon and alloy steel castings;

    A producer of welded and seamless OCTG;

    A steel distributor and service center;

    A producer of lightweight aluminum die castings;

    A manufacturer of mechanical steel tubing, chrome-

    plated bars, tubular parts, and precision components;

    A steel service center focused on flat rolled slit coil;

    A master distributor of stainless steel products; and

    A processor and recycler of scrap metals.

    GAs extensive appraisal experience also includes

    valuations of the following major businesses in the

    metals industry:

    Globally recognized vertically integrated steel tube


    A vertically integrated aluminum producer including

    both the upstream and downstream sides of the

    industry, with over $1 billion in sales annually and

    over $130 million in inventory;

    One of the U.S.s largest scrap recycling processors,

    with nearly $550 million in sales annually; and

    Well-known service centers across the nation, including

    a multi-division full line steel service center consisting

    of over 50 locations across the U.S., with $2.6 billion in

    annual sales and over $500 million in inventory.

    Moreover, GA has liquidated a number of companies with metal products, including Advanced Composites,

    Aluminum Skylight & Specialty Corporation, Anello Corporation, Apex Pattern, Balox Fabricators, BJS Industries,

    Buckner Foundry, Crown City Plating, GE Roto Flow, Laird Technology, Maddox Metal Works, Miller Pacific

    Steel, R.D. Black Sheet Metal, Valley Brass Foundry, and Southline Steel.

    GA has also been involved in liquidations of metalworking equipment for companies such as Adams Campbell

    Company, CAMtech Precision Manufacturing, Inc., Gregg Industries, Inc., International Piping Systems, Heat

    Transfer Products, PMC Machining and Manufacturing, Sherrill Manufacturing, Trans-Matic Manufacturing,

    Veristeel, Inc., and Weiland Steel, Inc.

    In addition to our vast appraisal and liquidation experience, GA maintains a staff of experienced metals experts

    with personal contacts within the metals industry that we utilize for insight and perspective on recovery values.

    GA additionally maintains appraisal experience involving precious metals and specialty metals, allowing GA to

    provide experience-based valuations across the entire metals industry. The metal products that GA has appraised

    have maintained applications throughout a wide variety of industries, including the automotive, construction,

    aerospace, industrial machinery and equipment, and appliance and electrical equipment markets.

  • 17 September 2014 Metals Monitor

    17 Monitor Information

    The Metals Monitor provides market value trends in both

    ferrous and non-ferrous metals. The commodity nature of

    steel scrap, aluminum ingot, copper cathode, and nickel often

    results in volatile market values. Our semi-annual Metals

    Monitor reflects pricing and market trends over the prior six

    months, as well as forward-looking projections, in order to

    reflect significant developments in the metals markets.

    The Metals Monitor includes a sampling covering most metals projects. GAs metals expertise

    is not confined to use on pure metals projects, but is always utilized in assuring the accuracy

    and insight for all manufacturing projects where metals are the primary or significant raw

    materials, regardless of the sector of the finished products. This assures that all appraisals

    from GA reflect the full scope of our experience and insight. GA internally tracks additional

    specialty and tool steels, all raw materials for steel, specialty steel, and primary aluminum

    production and manufacturing, but we are mindful to adhere to your request for a simple

    reference document. Should you need any further information or wish to discuss recovery

    ranges for a particular segment, please feel free to contact your GA Business Development


    GAs Metals Monitor provides market value and industry trend information for a variety of

    metals products. The information contained herein is based on a composite of GAs industry

    expertise, contact with industry personnel, industry publications, liquidation and appraisal

    experience, and data compiled from a variety of well-respected sources believed to be reliable.

    We do not guarantee the completeness of such information or make any representation as to

    its accuracy.

  • 18 September 2014 Metals Monitor

    18 Appraisal & Valuation Team

    About Great American Group

    Great American Group is a leading provider of asset disposition solutions and valuation and appraisal services to

    a wide range of retail, wholesale, and industrial clients, as well as lenders, capital providers, private equity

    investors, and professional services firms. In addition to the Metals Monitor, GA also provides clients with industry

    expertise in the form of monitors for the chemicals and plastics, food, and building products sectors, among many

    others. GA also offers various industry monitors via its subsidiary, GA Europe Valuations Limited.


    21860 Burbank Blvd. Suite 300 South

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    Mike Marchlik

    National Sales & Marketing Director

    [email protected]

    (818) 746-9306

    David Seiden

    Executive Vice President, Southeast Region

    [email protected]

    (770) 551-8114

    Ryan Mulcunry

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    Michael Petruski

    Executive Vice President, General Manager

    [email protected]

    (818) 884-3737

    Greg Trilevsky

    Senior AppraiserMetals and Manufacturing

    [email protected]

    (909) 559-8135

    Alex Tereszcuk

    Senior AppraiserMetals and Manufacturing

    [email protected]

    (336) 854-7859

    Dan Tracy

    Senior AppraiserMetals and Manufacturing

    [email protected]

    (412) 953-6357

    John Little

    Senior AppraiserScrap Recycling

    [email protected]

    (864) 630-4799

    Ryan Lutz

    Senior Project ManagerMetals Specialist

    [email protected]

    (781) 429-4052 Daniel Williams

    Managing Director, New York Region

    [email protected]

    (646) 381-9221

    mailto:[email protected]