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lets go sims get back up noth alot lets see 16.00 by the end of month
This stock was a screaming buy from the $6-$8 range a few weeks ago.
Long term this company has no short term debt, generates cash, and will acquire more businesses in the future.
The base metals rally continued on Wednesday in Europe helped by higher equities markets and a weaker dollar against major currencies, as better risk appetite and continued short-covering pushed metals up. Base metals, dominated by rising equity markets and concerns over further supply-side disruptions, are seeing short covering activity continue, said Mr Leon Westgate, an analyst at Standard Bank.
Copper
At 11.32 GMT, LME copper was trading at $4,274 a tonne, up 3.7 per cent from Tuesday's kerb close. LME lead was trading at $1,505/tonne, up 2.4 per cent. LME aluminum was trading at $2,141/tonne, up 1.5 per cent. LME nickel was trading at $12,600/tonne, up 5.3 per cent. LME tin was trading at $15,000/tonne, up 1.9 per cent.
Fed rate cut
Traders also said the metals were higher in anticipation of a rate cut in the US during the FOMC meeting, which started on Tuesday. "The equity rally lifted copper prices further, as well as speculation of rate cuts in the US," said Fairfax IS analyst, Mr John Meyer.
Lead
LME lead was supported by the announced smelter shutdown at the US-based The Doe Run Co, further highlighting in the current market conditions the need for more metals producers to curtail production amid falling prices and lower demand. From November 1, the company plans to curtail production at its Herculaneum smelter in Missouri by taking out one of its two furnaces.
Pressure on biz
The company said in a letter to customers that the move was due to a "drastic collapse" of lead and other commodity prices on the London Metal Exchange in recent days, and the pressure the lead price is having on Doe Run's business.
Doe Run previously had said it planned to produce between 1.5 lakh and 1.7 lakh tonnes annually at its primary smelting facility in 2008.
Base metals on the LME are trading higher, spurred by a short covering rally, with large funds covering their short positions, said Citi analyst, Mr David Thurtell.
"They are taking profits and then will likely re-establish new shorts at higher prices," Mr Thurtell said.
Economic slowdown
The global economic slowdown is a massive problem and the recent rise is simply a reflection of the short Comex copper market, Mr Thurtell said.
LME open interest is "not far off" a record high while prices have declined, suggesting it too is short, he added. As a result, "there is potential for an explosive rally," he said.
Source : Business Line
SMS 9.10 I think it's close to bottom now.
Personally, I am waiting for another pull back to the $25 area.
SMS chart ;
Messages are not to be considered a solicitation to buy, hold or sell securities. http://www.otcmarketedge.com/disclaimer_disclosure
SMS 28.05, definitely on radar for accumulation
Thank Scrap: The Market For Recycled Metals
“Where there’s muck there’s brass”
Slang from Yorkshire, England
In other words, “Where there’s muck there’s money.”
And these days, with a booming scrap metal market, “Where there’s brass there’s brass.”
Indeed, the estimated New York dealer buying price early last week (delivered to the scrap yard) for scrap yellow brass solids ranged from US$1.25/lb to US$1.35/lb; the price for scrap red brass solids was 12% higher. Little wonder, then, that New York’s Department of Sanitation police are now aggressively cracking down on urban entrepreneurs caught “recyclable rustling.” The department makes a tidy sum selling its metal scrap.
The boom in scrap is similar for many other metals (as, unfortunately, is the rustling), including precious metals. With gold trading at record highs, even Indian housewives, voracious consumers of gold, are selling unwanted jewelry for scrap. There is plenty of anecdotal evidence, also, to suggest that you will probably now get the best price for your grandma’s silver flatware selling it for scrap!
Whether it’s chomped up Boeing 747s, crushed armored cars bought from the government or spent catalytic converters, there’s money in scrap. From having often been the domain of the likes of the Gotti family in New York and the Richardsons in London, scrap is now significantly more “mainstream,” to the extent of even experiencing some “formal” consolidation.
Source: Bureau of International Recycling.
John Seabrook, in his truly wonderful introduction to the U.S. scrap industry, “American Scrap,” in The New Yorker of January 14, makes the observation that not only does the industry appear to be thriving, it is also globalizing. With the current prices being paid, and the strong demand, for metals, this is not surprising.
A Global Industry
Scrap metal is big business, whether it is ferrous (iron and steel), nonferrous (other base metals), stainless steel, a special alloy or a precious metal. According to the Bureau of International Recycling (“BIR”), the global recycling industry as a whole (including plastics, rubber, paper etc.) has an annual turnover of more than US$160 billion, processes more than 500 million tonnes of scrap (of which 400 tonnes is metal) and employs more than 1.5 million people.
In 2006, the recycling industry in the U.S. alone was worth US$65 billion with, according to the Institute of Scrap Recycling Industries, Inc. (“ISRI”), the country annually recycling more than 90 million tons of ferrous and nonferrous metals.
Scrap is also a big export earner for the U.S. (2006: US$15.7 billion). Ironically, in 2006, after electronic components, in dollar terms, scrap was the second largest U.S. export to China. By the end of November 2007, the U.S. had exported worldwide some 15.1 million tonnes of ferrous scrap and 2.8 million short tons (short ton: 2,000 lbs/907 kgs) of nonferrous scrap, with China, again, a major recipient. And with the U.S. dollar at its current levels, ferrous scrap remains a steal for steelmakers outside our borders.
Why The Current Interest?
Two main reasons: first, a strong market for metals; and, second, the continuing concern for the global environment.
A Strong Market For Metals
As regions such as China, India and the Far East continue to develop strongly, involving, not least, extensive commercial, residential and industrial construction projects, so too does their demand for iron and steel, copper, aluminum, lead and tin. The need is there, also, for the special alloys (e.g., nickel, molybdenum and tungsten) used in steels and such things as industrial machinery, armaments and cars.
Scrap helps the primary metals industry feed these needs―but not only in the developing countries. In the U.S., two-thirds by weight of domestically produced steel is made from scrap, and nonferrous scrap is used to make 60% of the alloys and metals produced domestically. Even back in 2004, steelmakers worldwide used scrap for nearly half their furnace feedstock.
In the steel industry, because it is so massive, quite apart from the matter of its cost, the use of scrap, as opposed to virgin ore, has a single major advantage―very significant energy savings: some 74% for both steel and iron.
If one of the attractions of ferrous and nonferrous scrap is in energy savings, it is the current price levels that are particularly attractive. Amongst other places, silver and gold can be recovered from old electric scrap, electronic equipment, including computers, military equipment and, of course, jewelry.
Some Metals In Electronic Scrap (%)
Auto Electrics Keyboards† PCs† Printed Circuit Boards TVs* Metals
Ag 0.12 0.05 0.009 0.1 0.03 Ag = Silver
Au 0.007 0.005 0.001 0.015 0.0025 Au = Gold
Al 5 18 11 3 5 Al =Aluminum
Bi 0.01 <0.0003 <0.0004 0.17 0.2 Bi = Bismuth
Cu 20 13 7 25 12 Cu = Copper
Ni 0.3 0.6 0.2 0.5 0.5 Ni = Nickel
Pd 0.005 0.002 0.0004 0.002 0.001 Pd = Palladium
Pb 1 0.3 1.5 3 3 Pb = Lead
Sb 0.08 0.3 0.5 0.06 0.05 Sb = Antimony
Zn 1 3 1.2 1.5 2 Zn = Zinc
Fe = Iron
† = following removal of Fe
* = following removal of Fe and glass
In addition, while both silver and platinum can be recovered from spent catalytic converters, platinum can also recovered from old hard disk drives, oxygen sensors, spark plugs and disposable medical devices.
In fact, according to the U.S. Department of Defense, in the 30 years prior to 2005, through sales of military scrap under its Precious Metals Recovery Program, it saved the government some US$250 million.
At a current price level around US$3,400/lb, the rhenium alone (not to mention the platinum) recoverable from the spent bimetallic catalysts used in the oil refining industry makes them valuable scrap. And with the price of cobalt (a key component in lithium-ion batteries) having skyrocketed some 70% in the last year to a current price of around US$45/lb, the scrap value of old jet engines, magnets, spent rechargeable batteries and cutting tools have risen significantly.
The Continuing Concern For The Environment
The greatest environmental benefit from using scrap, instead of virgin ore, is the reduction in greenhouse emissions: Recycling metals saves energy. If the savings in the steel industry is large, for other base metals it can be even more significant:
aluminum – 95%
copper – 85%
zinc – 63%
lead – 60%
It is no wonder, therefore, that around 40% of the world’s need for copper is provided for by scrap.
Using scrap not only reduces air pollution, and both water use and pollution, it also conserves natural resources. For example, recycling one ton of steel conserves 120 lbs of limestone, 2,500 lbs of iron ore and 1,400 lbs of coal with an 86% reduction in air pollution, 40% in water use and 76% in water pollution.
Sharing In The Boom
While “recyclable rustling,” pinching beer kegs and stripping roofs of lead may be increasingly popular and highly profitable, they are also all illegal. In addition, trying to steal copper wiring can also be lethal.
For the committed entrepreneur, there are books and Web sites out there devoted to the “home” recycler telling how to recycle everything from old alternators to electronics to government surplus. You can even download a scrap metal business plan from the Web.
Unfortunately for those of us who do not want either to set up our own scrap yard or turn over the basement for dismantling old TVs, a large proportion of the scrap metal/recycling industry is privately owned, not least because many of the businesses are small operations, often family firms, employing just a handful of employees. There are, however, a number of U.S. publicly quoted companies seriously involved in scrap metal, even if it may not be their only activity.
Each week the ISRI publishes its Friday Report, with a section at the back entitled “ISRI’s Eye on Equities.” While all of the companies listed have an interest in recycling of one sort or another, among those with a particular interest in scrap metal are: Commercial Metals Company (CMC), Gerdau Ameristeel (GNA), Industrial Services of America (IDSA), Metalico (MEA), Metal Management (MM), Schnitzer Steel Industries (SCHN), Sims Group (SIMYY) and Steel Dynamics (STLD).
Conclusion
Whether or not metal prices remain at their current levels, there will always be a need for scrap metal―in all its many forms, shapes and sizes. On the one hand, there are the dramatic energy savings its use provides. And on the other, there is the fact that its use benefits the environment significantly. With energy looking to remain costly for a while yet and concern for our environment set only to increase, scrap yards will be with us for a while. And there will continue to be brass in muck.
Impose a price band on steel products?
21 Jul, 2008, 0014 hrs IST, ET Bureau
Lalit Thakkar, Director, Research, Angel Broking
A free market is vital for the sector’s growth
Domestic steel industry has been going through challenging times, with raw material prices rising unabated and government trying to cap final product (steel) prices in order to keep inflation under check.
Notably, the government has taken several measures in the past six months to keep a check on steel prices, which contribute around 3.63% in the WPI. Now, after holding prices for three months since May 2008, the battle between the government and steel players has erupted again. With the anticipation of players increasing prices very soon, government is trying to counter this with the imposition of a price band on steel products.
In our view, the price band should not be imposed on steel products as it would be unfair to the domestic steel industry. Notably, global steel prices are ruling at 30% premium to domestic prices. Global prices have increased by 50-60% in 2008, as compared to just 20% rise in the domestic market. The hefty price increases globally reflect the higher raw material costs like iron ore and coking coal. Iron ore prices have climbed 100% globally and coking coal prices have tripled. It is to be noted, India has limited reserves of coking coal and most of the players rely on importing it, thus necessitating a price increase.
Also, price band or any such control would send negative feelers to global investors/steel players who are contemplating huge investments into the country. Also, the domestic expansion projects in the country could get affected. We believe that at this time, when steel production in India is in deficit, with the country becoming a net importer of steel after a decade, government should focus more on relaxing regulations with respect to land acquisitions, mine allocations, etc.
The government needs to allocate more and more blocks of coking coal and iron ore and also aid the development of mining infrastructure in the country rather than regulate the industry by imposing restrictions. A free market policy is important for the survival and growth of any industry.
(Views are personal)
Anil Sureka, ED (Finance), Ispat Industries
It will only distort the market further
It is ironic that at a time when the government is going all out to secure a nuclear treaty, there should be signals emanating from the same government about plans for a price band for steel products. Such a move will be a classic case of one step forward-three steps backward. In the same breath, we are today talking of globalisation and administered pricing.
It is true that domestic steel prices have climbed since the beginning of this year, but so is the case with most products including food items and other essential goods. Internationally, steel prices continue to rise and this trend may continue into 2009.
Mercifully, the government acknowledges that steel prices are climbing due to steep increase in input costs. Still, there are efforts to hold price line and enforce price-bands. Despite the continued steep rise in the price of raw materials such as iron ore, metcoke and metal scrap (which has experienced doubling of in a year), major domestic steel companies cut prices of flat steel products by Rs 4,000 per tonne in May 2008 to help the government contain inflation.
That apart, domestic primary producers are selling steel in the Indian market at $300-$350 per tonne less than the international prices. Also, exports have been cut by 31% over the past three months to make more steel available in the domestic market.
The retail prices of these products, however, started rising within a month-and-half of the price control, establishing the fact that such artificial price reductions do not reach the retail user for whom such concessions are meant.
Any attempt to artificially hold prices of steel through a price band or any such measure will only further distort the already distorted domestic market. Solution to controlling prices lies in taking appropriate policy and fiscal measures to augment domestic supply by helping the industry add new capacity. Unfortunately, current efforts to take away the freedom of steel companies to price their products not only impact their ability to raise funds for expansions, but also scares away prospective investors. It is time policymakers focused on long-term remedial measures rather reacting to short-term volatility in prices.
(Views are personal)
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SMS pullback is looking attractive again, chart ;
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SMS is getting closer & closer to $40 ;)
SMS 37.61, as soon as it hits $40, I'm mentioning this one to " CRAMER-rrrrrrrrrr " LOL
SMS 35.62, HOD 36.78, a nice bounce off of the 50 day ma (33.81)recently
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SMS moving up slow & steady but a nice pull back came into play today 34.82
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Sims Joint Venture Acquires Pacific Coast Recycling, LLCLast update: 5/27/2008 8:30:04 AMCHICAGO & SYDNEY, Australia, May 27, 2008 (BUSINESS WIRE) -- Sims Group Limited announced today that SA Recycling - a joint venture between Sims Group and Adams Steel - has purchased Long Beach, California based Pacific Coast Recycling, LLC (PCR) from Mitsui & Co. Ltd. and its 100% subsidiary Mitsui & Co. (USA), Inc. The financial terms of the deal, including price, were not disclosed. PCR operates seven facilities in California - including locations in the Port of Long Beach, San Diego, Fontana, and South Gate - processing both ferrous and nonferrous scrap metal with annual shipments of approximately 1 million metric tons. Cautionary Statements Regarding Forward-Looking Information This release may contain forward-looking statements, including statements about Sims Group Limited's financial condition, results of operations, earnings outlook and prospects. Forward-looking statements are typically identified by words such as "plan," "believe," "expect," "anticipate," "intend," "outlook," "estimate," "forecast," "project" and other similar words and expressions. These forward-looking statements involve certain risks and uncertainties. Our ability to predict results or the actual effects of our plans and strategies is subject to inherent uncertainty. Factors that may cause actual results or earnings to differ materially from these forward-looking statements include those discussed and identified in filings we make with the Australian Securities Exchange and the United States Securities and Exchange Commission, including the risk factors described in the Registration Statement on Form F-4 we filed with the United States Securities and Exchange Commission on 8 February 2008. Because these forward-looking statements are subject to assumptions and uncertainties, actual results may differ materially from those expressed or implied by these forward-looking statements. You are cautioned not to place undue reliance on these statements, which speak only as of the date of this release. All subsequent written and oral forward-looking statements concerning the matters addressed in this release and attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this release. Except to the extent required by applicable law or regulation, we undertake no obligation to update these forward-looking statements to reflect events or circumstances after the date of this release. About Sims Group Limited Sims Group Limited, which recently merged with Metal Management Inc, () is the world's largest listed metal recycler with over 200 operations globally. Sims' core business is metal recycling, with an emerging business in recycling solutions. Sims earns around 80 per cent of its revenue from international operations in the United Kingdom, Continental Europe, North America, New Zealand and Asia. Sims has over 6,000 employees, an annual turnover of A$8.5 billion and has its ordinary shares listed on the Australian Stock Exchange (ASX: SGM) and its ADRs listed on the NYSE (SMS). SOURCE: Sims Group Limited
Sims Group LimitedFor further information contact in North AmericaDan DienstGroup Chief ExecutiveTel: 212 750 7189orFor further information contact in AustraliaJeremy SutcliffeChairman, Europe and AustraliaExecutive DirectorTel: 02 9956 9100orStuart NelsonDirector, Corporate ServicesTel: 02 9956 9100Copyright Business Wire 2008
Welcome to Sims Group Limited board on Investorshub, SMS is the world's largest listed metal recycler with over 200 operations globally. SMS 32.97
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