Author: Ozzione Group LTD

SteelOrbis is the primary information source preferred by thousands of firms for its up-to-date scrap prices, scrap market analyses and scrap forecasters, as it closely follows the main ferrous scrap markets such as the US, Russia, the UK, Europe, the Baltic countries and China. Used as a reference by key market players and accepted as the best in its field, the SteelOrbis Scrap Prices page allows you to take a major step forward in your trading activities.

Scrap Prices

Scrap is basically called materials which are left over after certain processing is done. In addition to this view, scrap products include highly demanded materials in terms of building and maintenance areas. Scrap materials such as metals and steels can be recycled and benefited from. In the global market, scrap materials are composed by some scrap metal or steel business owners. Scrap products generally include building supplies, some practical part of the vehicles and leftover metal materials. There are plenty of analysis and forecast reports about scrap prices in order to track general profit and movement of prices. Scrap material business has a potential for high and sustainable profit in the long term period. The amount of scrap materials is directly connected with steel and metal industry such as the construction process. Therefore, most companies observe scrap prices as an investment opportunity in order to control their share on the global market.

Steel Scrap Prices

Different industries have many production leftovers which may be significant and valuable for recycling processes. Even insignificant materials recycled once, may become valuable and useful productions. One of the most popular recyclable material combinations is scrap that adds an extra profit source to the global steel market. While steel is the main product to use in various construction projects, scrap performs as an auxiliary resource. Steel scrap prices vary according to scrap features, daily scrap prices and market demands. Most commonly used scrap types are non ferrous and ferrous metals which have quality differences. Ferrous metal scraps are more demanded because of their higher value than non ferrous metal materials. Therefore steel scrap prices are also higher in amount than undervalued non ferrous scraps. There are some practical ways to track daily scrap prices worldwide such as scrap price analysis. Daily, weekly and monthly forecasts help to control and maintain profit from steel scrap business in general. It is also possible to follow scrap import and exports through location and trade conditions based on those statistics. In order to understand how scrap prices move up and down in per movement day by day, these analysis may help.

Scrap Index

Global trade area is where most countries run their import and export action and gain profit from their production and services. In this case, plenty of production like steel scrap materials can reach all around the world and meet market demands. Scraps are the main leftovers right after completed operations in different work areas. Many industries which focus on constructions and architecture provide a high amount of benefit from scraps in the global market. When demand for scrap materials increases, the amount of recycled scraps and other significant auxiliary materials become increased. All those movements of scrap prices and products can be tracked on practical and forecasted index platforms. Scrap index platforms include daily, weekly, monthly and yearly data tables which can be compared with each other in terms of price increase and decrease. Scrap prices also can be followed in scrap indexes that show week by week average scrap values according to changing percentage.

For Chrissy Nardini, making the decision to sell her family’s business was bittersweet.

Nardini is the third generation in her family to lead American Metals Supply, a St. Louis-based wholesale distributor of sheet and coil steel, prefabricated ducts, fittings and HVAC products that was founded by her grandfather in 1962.

But an unsolicited, and eventually spurned, offer to buy the business, combined with uncertainty over the next generation’s interest in carrying the family ownership forward, prompted American Metals to seek out the ideal partner.

It found one in MacArthur Co., a St. Paul, Minnesota-based wholesale distributor of building supplies, which announced May 10 that it was acquiring American Metals. Terms of the deal, which closed earlier this month, weren’t disclosed.

While the deal ends five decades of family ownership, it shifts the business into the hands of an employee-owned company, which will give American Metals’ 155 employees the chance to participate in the MacArthur Co.’s employee stock ownership plan. This was attractive to Nardini, who said that one of American Metals’ top priorities is its commitment to improving employees’ lives.

“(The decision was) good for my family financially, but also very good for the employees,” Nardini said. “I can feel 100% comfortable looking all them in the eye and saying, ‘This is a chance for you guys to have something as good as what you’ve had (at American Metals), or possibly even better.’”

‘Top sheet metal salesman’

American Metals was founded by Nardini’s grandfather Al Hassebrock in 1962 in Springfield, Illinois, after leaving his job as a salesperson at a building materials distribution company, according to the company’s website. A year later, his former employer sold its sheet metal business to Hassebrock, encouraging its customers to stick with him in a note that read: “We sincerely hope you will continue to give Al Hassebrock the same loyal support you gave him over the past year while he was getting his business established. We have always considered him the top sheet metal salesman in this area.”

His son, and Nardini’s father, Steve Hassebrock, took over in 1971. Nardini joined the company as CFO in 1997 after working as a public accountant at Ernst Young and Kerber, Eck & Braeckel LLP. In 2006, she took over the company.

Two generations later, under Nardini’s leadership, the company reported 2022 revenue of $198 million, with 54 local and 155 total employees, making it one of the region’s largest women-owned companies, as well as one one of the region’s largest and fastest-growing private companies.

The decision to sell came out of discussions last June with a private equity firm that was interested in buying American Metals. Though it decided selling to private equity wasn’t the right move, the conversations piqued the family’s interest in further exploring a potential sale.

“(The conversations with the private equity firm) just brought to the forefront, ‘What are we going to do?’” Nardini said. “There is another generation in our family. However, some of them aren’t sure if they want to enter the business, some of them are too young … so it made us think.”

The new structure

American Metals will operate as an independent subsidiary of MacArthur, retaining its product line and nine locations, according to a press release. Nardini, who will continue as the unit’s president, said that all American Metals employees are being retained, with the headquarters remaining in St. Louis.

With 2022 revenue of $1.8 billion, 110-year-old MacArthur Co. has about 1,100 total employees, she said. MacArthur and its subsidiaries, with over 50 locations across the U.S., distribute building products including insulation, lumber, HVAC products and roofing, as well as manufacture pre-engineered buildings.

MacArthur officials said the acquisition combines two complementary distribution businesses and is the latest step in its goal to “increase its product portfolio while protecting its core offering,” and that there are almost no areas in the country where the two overlap or compete with each other.

“American Metals Supply shares our approach to business, with a commitment to consistent, stable growth by providing exceptional customer service and the desire to manage an organization that focuses on long-term retention of engaged team members,” Barrett Moen, CEO of MacArthur Co., said in the release. “We both have a strong heritage as successful distribution businesses that share an understanding of what it means to be industry leaders. With the acquisition of American Metals Supply both companies will be able to provide our customers with an enhanced portfolio of products.”

We are pleased to announce the proposed business combination agreement between American Metals LLC, a wholly owned subsidiary of American Resources Corporation (NASDAQ: AREC), and AI Transportation Acquisition Corp (NASDAQ: AITR), a publicly listed special purpose acquisition company. This strategic transaction, valued at $170 million, marks a significant milestone in American Metals’ expansion journey.

Under the terms of the agreement, each of AITR and American Metals will become subsidiaries of a newly formed Delaware corporation, Electrified Materials Corporation (“Pubco”), which will serve as the parent company of AITR and American Metals following the consummation of the business combination agreement. It is anticipated that the combined company will be listed on the Nasdaq Stock Market under the ticker symbol “EMCO.”

About the Transaction

At the effective time of the transaction, shareholders of American Metals immediately prior to the effective time will receive shares of common stock of the publicly traded entity based on an implied pro forma equity value of approximately $170 million. This proposed business combination agreement will provide American Metals with enhanced capital access and market presence, positioning the company for accelerated growth and expansion in the recycling of critical metals for the electrified economy.

Ian Hanna, Managing Director at ARC Group, commented, “This business combination agreement is a transformative step for American Metals LLC. The enhanced capital access and public market presence will empower American Metals to expand its operations and leadership in the recycling industry. We are thrilled to support American Metals and AI Transportation Acquisition Corp. in this pivotal transaction.”

About American Metals LLC

American Metals LLC is an innovative recycler of metals for the electrified economy, operating within the U.S. coal country. The company focuses on preprocessing end-of-life magnets, lithium-ion batteries, and ferrous metals to ensure a domestic supply chain for copper, aluminum, steel, plastic, as well as rare earth and battery elements.

About AI Transportation Acquisition Corporation

AI Transportation Acquisition Corporation (NASDAQ: AITR) is a special purpose acquisition company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses in innovative industries.

Advisors

ARC Group proudly served as the sole financial advisor to AI Transportation Acquisition Corp. in this transaction, providing strategic guidance and expertise to ensure a successful business combination agreement.

About ARC Group

ARC Group is a global financial services and advisory firm with deep roots in Asia. We specialize in bridging markets between Asia, the US, and Europe. Established in 2016, we have grown to become a global leader in SPAC and IPO advisory. In 2020, we were recognized as the best global mid-market investment bank, and in 2022, we topped SPAC M&A charts both in the number of transactions and transactional value. Our services include IPOs, M&A, Financing, Venture Capital, and SPACs. With offices in 12 countries across 3 continents, your achievements are our reason for existence, and your growth is our passion.