Scrap Management

For generators and consumers of scrap metal, the scrap industry can often be difficult to navigate due to frequently volatile markets, its diverse base of processors and dealers and uniquely entrepreneurial spirit.  For such businesses, which are directly part of the scrap “food chain” but not involved in the scrap industry on a day-to-day basis, AMG’s scrap-management experience can prove to be an invaluable asset.

Scrap Generators

AMG’s scrap-management customers include some of the largest consumers of steel in the United States and Europe.  For these scrap generators, AMG develops and manages scrap programs focused on obtaining the greatest value for the scrap generated and making the scrap disposal function as efficient as possible within customers’ existing operations.  AMG’s private fleet of 700 railcars enables its customers to frequently achieve significant freight savings and ensure that AMG will always be able to provide timely service.

AMG also works closely with its customers to recommend and implement scrap-handling processes that will both increase the value of the scrap generated and minimize disruptions to the primary manufacturing operations.  A well-designed scrap program will also build in sufficient redundancies so that a customer’s manufacturing operations are never disrupted as a result of the scrap-handling function.

On an on-going basis, AMG provides its customers with regular scrap reports to ensure that they have the latest available market information.  AMG also provides customers with access to specially tailor reporting tools, including on-line web portals, that provide easy access to up-to-date information on all scrap shipments.

Scrap Consumers

Steelmakers rely on scrap for the production of steel more so today than at any other time in history with the amount of the amount of scrap used per ton of steel produced having more than doubled over the past 50 years and scrap costs routinely accounting for more than 50% the production cost of steel.  As a result, a steelmaker’s success is critically dependent on the efficiency of its scrap-purchasing and scrap-blending programs.  AMG understands that, while raw material costs are of the utmost concern, the quality and consistency of a melt shop’s scrap intake is an equally important factor.  While cheaper grades of scrap may appear to be a better value, they can often contribute to higher slag content or missed melts, both of which directly affect the steelmaker’s bottom line.

Unlike many other scrap managers and brokers that merely take orders for mills, AMG works with melt shops and purchasing departments to design full-service scrap management programs, assisting steelmakers in the design of optimized purchase plans, identification and qualification of scrap suppliers, coordination of transportation logistics and performance of scrap chemistry analyses.  AMG is experienced at working with a wide range of steelmakers, from large integrated steel mills to smaller specialty foundries and melt shops.