China Armco Metals, Inc., an distributor of imported metal orea and metal recycler with a new state of the art scrap metal recycling facility in China, today announced that its Armet Renewable Resource subsidiary, has signed a $100 million contract to supply a major Chinese steel producer with up to 230,000 tons of scrap steel in 2010.
The company will deliver up to 23,000 tons of scrap steel each month for 10 months commencing in March 2010.
China Armco’s management anticipates that the supply contract will allow it sell all the initial production from its new recycling facility during its first months of operation. The company also believes that the facility will reach its full capacity run rate during Q4 2010. At full capacity the facility is capable of processing approximately 1 million metric tons of scrap steel per year or over $400 million annually at current prices.
Mr. Kexuan Yao, CEO and Chairman of China Armco Metals, Inc. said, "We are very excited to have secured such a sizable contract with this leading steel producer. This essentially has pre-sold the first several months of production from our newly opened facility as we ramp up capacity over the coming quarters. We are confident that this contract coupled with our other operations will enable our company to experience significant revenue growth and enhanced earnings power for the foreseeable future."
Showing posts with label scrap metal. Show all posts
Showing posts with label scrap metal. Show all posts
Thursday, March 4, 2010
Friday, January 23, 2009
Japanese Scrap Metal Exports Soar As Chinese Stimulus Package Takes Effect
Marubeni Corp., Japan's second-largest scrap steel trader, said its exports to China have quadrupled in the past two months as demand in China has improved in response to a planned government stimulus.
Monthly scrap exports in December and January were about 200,000 metric tons, up from the 50,000 tons typical of most months, said Kazuo Baba, a general manager at Marubeni's iron and steel materials trading unit, Marubeni Tetsugen Co.
China, the world's largest steel consumer, plans to spend 4 trillion yuan ($585 billion) to support its sagging economy by starting construction projects, including bridges and airports, and increasing metal consumption.
"It appears that China's stimulus measures are gradually resuscitating steel demand," said Baba in an interview Wednesday in Tokyo. About 60 percent of the scrap was bought by steelmakers and the rest by trading houses, including Fengli Group Co., he said.
Japanese scrap export prices under January contracts rose 28 percent from a month earlier to ¥23,312 per ton, Kanto Tetsugen, the Tokyo-area scrap dealers' cooperative, said on 14 Jan, though this is still some way off a peak of more than ¥70,000 reached last July.
Source: Japan Times
Monthly scrap exports in December and January were about 200,000 metric tons, up from the 50,000 tons typical of most months, said Kazuo Baba, a general manager at Marubeni's iron and steel materials trading unit, Marubeni Tetsugen Co.
China, the world's largest steel consumer, plans to spend 4 trillion yuan ($585 billion) to support its sagging economy by starting construction projects, including bridges and airports, and increasing metal consumption.
"It appears that China's stimulus measures are gradually resuscitating steel demand," said Baba in an interview Wednesday in Tokyo. About 60 percent of the scrap was bought by steelmakers and the rest by trading houses, including Fengli Group Co., he said.
Japanese scrap export prices under January contracts rose 28 percent from a month earlier to ¥23,312 per ton, Kanto Tetsugen, the Tokyo-area scrap dealers' cooperative, said on 14 Jan, though this is still some way off a peak of more than ¥70,000 reached last July.
Source: Japan Times
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