Dive Brief:

• Metalico Inc. posted a $10.9 million net loss for Q1. The firm had a net loss of $3.9 million for the same time last year, and a loss of $6 million for the preceding year.
• The company saw $79.5 million in sales, down from $118.5 million from last year, and said a marked lowering in ferrous scrap prices reduced inventory valuations and almost erased profit margins on ferrous sales for the first quarter.
• The U.S. dollar’s strength, combined with lowered demand from Asia, impacted nonferrous pricing. This state of the market resulted in more U.S. finished metal products imports.

Dive Insight:

A wave of semi-finished and finished steel imports into the U.S. from foreign producers has affected domestic producers' scrap demand, with foreign companies buying scrap tapping cheaper, non-U.S. sources.

"Bad winter weather and the large drop in ferrous pricing, coupled with weak inflows and poor mill demand, combined into a perfect storm adversely impacting results," said Carlos Aguero, Metalico’s president and CEO, according to Recycling Today.