Commercial Metals Ships Scrap

Commercial Metals Company (CMC) announced that last week it shipped the largest single cargo of steel scrap ever loaded on a vessel anywhere in the world. The cargo consisted of more than 85,000 metric tons. The steel scrap cargo has an invoice value of about $16 million and was shipped to Nakorn Thai Steelworks Company Ltd. (NTS), a Thailand steel mini-mill operation which will use the metal in the manufacture of new steel products.

"This shipment represents a first for NTS as well as CMC," commented Stanley A. Rabin, president and CEO of CMC.

"No steel mill in the Pacific Rim has ever undertaken the receipt of a shipment this large. Managing the logistics of unloading and transporting will be a considerable accomplishment." The steel scrap was loaded onto the Turkish vessel M/V Tahir Kaptan at Port Newark, N.J. The ship measures approximately 820 ft. (250 m) by 125 ft. (38.1 m), with a deadweight of 120,000 tons. The CMC shipment, which comprised the entire cargo of the vessel, would fill the equivalent of 1,100 rail cars. Due to the draft restriction at the load port, the first 75,000 metric tons was loaded at the dock, then the ship moved to deep water for loading of the remaining 10,000 metric tons utilizing barges and floating cranes.

The loaded vessel departed for Thailand September 29 on a 50-day voyage around the southern tip of Africa.

"We see this as a trend in scrap exports," Mr. Rabin said. "The economics are simple — the greater the load, the greater the cost savings in shipping. We think customers will increasingly pursue the economic benefits of larger shipments." CMC and its subsidiaries manufacture, recycle and market steel and metal products, related materials, and services through a network of more than 90 locations including steel mini-mills, steel fabrication plants, a copper tube mill, recycling facilities and trading offices in the U.S. and overseas.