Radius Recycling Inc. announced a net loss of $37 million for Q1 of fiscal year 2025. This marks the company’s sixth consecutive quarterly loss. The loss is significantly higher than the $16 million loss from the same period in 2023. The company attributes some of the loss to tax issues. The operating loss for the quarter was $24.9 million.
Ferrous Scrap Prices Impact Financial Performance
Declining ferrous scrap prices contributed to Radius’s losses. The company experienced “flat” ferrous scrap prices. This led to weak performance in metal recycling. Radius’ average selling price for ferrous scrap was $331 per ton domestically. Overseas sales fetched a slightly higher price of $340 per ton. Despite these struggles, Radius saw improvement in its nonferrous scrap business.
Nonferrous Scrap and Cost Reduction Offer Some Relief
Stronger demand for nonferrous materials partially offset the challenges. The company’s nonferrous scrap had an average price of $1.02 per pound. This is a significant gain compared to the same period in 2024. Additionally, Radius benefited from cost reduction measures. This helped its nonferrous segment remain resilient. However, these gains were not enough to counterbalance the losses from the ferrous sector.
Challenges at EAF Steel Mill
Radius also faced difficulties at its steel mill in Portland. The mill reported a decline in year-over-year profits. This was attributed to softer steel market conditions and a maintenance outage. However, the mill’s utilization rate remained strong at 81%. This is higher than the national average of 75%.
Outlook for Improved Demand
CEO Tamara Lundgren expressed optimism for the second half of the fiscal year. She expects increased demand. This will be driven by inventory rebuilding and seasonality. In the long term, the company is confident about recycled metals demand. This is supported by investments in infrastructure, energy projects, and industrial reshoring. Lundgren also emphasized the transition to low-carbon technologies. This will help sustain long-term demand for recycled metals.
Leave a Reply
You must be logged in to post a comment.