Skip to Content
Global News Select

Sims Expects Stimulus to Result in More Scrap — Commodity Comment

Metals recycling company Sims Ltd. expects to record a jump in first-half earnings, the company said in a trading update ahead of its annual shareholder meeting. Here are some remarks from that statement.


On recycling markets:

"The company announced that the strong earnings momentum seen in 2H FY21 has, to date, continued into 1H FY22, with the North America businesses providing the leading contribution. Partially offsetting the strong margins has been freight price volatility and the emergence of inflationary pressures on general business costs. Proprietary intake volumes for the September quarter 2022 were up over 10% on the prior comparable period. However, they were slightly below the FY19 average proprietary intake volumes, largely due to Covid-19 related lockdowns."


On the outlook:

"The business is expected to benefit from positive medium- to long-term macro trends. Stimulus spending around the world will increase demand for steel-intensive infrastructure spending and drive additional retail consumption. Additional retail consumption will also increase post-consumption scrap. These trends are positive for both ferrous and non-ferrous metal recycling."


On the impact of decarbonization:

"Action relating to the decarbonization of steel making and electricity generation has gained a significant pace over the last year. The move globally to build more electric arc furnaces will drive the demand for recycled metal. Decarbonization of the electricity industry will see increasing use of copper. Cars are increasingly using more aluminum in their construction. Sims is well placed to benefit from these trends as it continues to provide high-quality recycled metal to global markets."


Write to Rhiannon Hoyle at


(END) Dow Jones Newswires

November 09, 2021 17:16 ET (22:16 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.