NEW YORK The cost of
shipping scrap metal to Gerdau Long Steel North Americas
mill in Sayreville, N.J., is likely to climb after the mill
announced it would not allow trucks to exceed state-imposed
The mill said it would restrict
all trucks entering or leaving the mill to a maximum gross
weight of 80,000 pounds due to New Jersey State Police activity
at its scalehouse and on the approach road to the plant, it
said in a letter to truckers and dealers/suppliers.
Police "have focused in on the
overweight trucks entering and leaving our facility. Due to the
serious safety concerns we have with the overweight trucks
dumping scrap in our yard and also the violation of the law, we
will continue to restrict all trucks entering or leaving the
Gerdau Sayreville mill" to the maximum weight in cooperation
with local and state police, ensuring compliance with state
Department of Transportation regulations, the mill said in the
Scrap deliveries to the mill
have slowed over the past two weeks due to the added police
presence, according to market participants in the region. One
source said that some suppliers have opted to take their scrap
in containers to export docks because they can move more scrap
in a single box.
Suppliers to Gerdau can now ship
less than 40 short tons, or 35.71 gross tons, per truckload,
while suppliers loading containers to export docks can achieve
at least 10 percent more on average. "(Export) containers can
hold more because the net weight of a truck, chassis and
container is much less than a tractor and dump trailer," a
second source said.
"Sayreville is a problem because
of this (weight restriction)," the first source said. "It will
force Gerdau to pay increased prices for scrap to import by
rail. The local trucks and those not local will be forced to
A third source said that in
addition to the 80,000-pound limit on trucks, the mill also has
issued a 263,000-pound gross weight limit on rail cars because
they travel on Amtrak rails. "(This) will make transportation
of scrap more costly into Gerdau Sayreville. These weight
restrictions on scrap deliveries coupled with strict scrap
quality standards will only further restrict their scrap
supplier base," he said.
Tampa, Fla.-based Gerdau would
not comment on the weight restriction or the possible impact it
could have on prices for scrap delivered to Sayreville.
A state police spokesman said
the monitoring was part of routine police work and did not
specifically target Gerdau. The spokesman did not disclose
whether any trucks had been caught carrying excess weight.