Scrap metal recycling has been adversely affected by the economic slowdown in 2012, according to China Armco Metals.
In its third quarter results, the company noted that its scrap metal business suffered in the first six months because of the economy, but the third quarter had seen an improvement in business conditions.
Overall sales of recycled metal fell from 78,356 tonnes in the first nine months of 2011 to 62,083 in the same period in 2012 however.
Compared to the same quarter in 2011, sales of recycled metals increased 60 per cent in the third quarter of 2012 to $13.4 million from $8.3 million last year.
This contributed to a net sales decline of 5 per cent to $15.4 million in the quarter.
China Armco chairman and chief executive Kexuan Yao said: “We are pleased to report a consolidated net income this quarter after consecutive losses in previous quarters and this is important to us.
“We made significant progress in our metal recycling business this quarter. In response to the market rebound in the third quarter, we significantly expanded our metal recycling business activities and our production and sales increased by 232 per cent and 134 per cent in quantities respectively, compared to the same period in 2011.
“Our gross profit margin for the recycling business in the third quarter was 14 per cent, signifying significant improvement of our recycling business operation and capacity.”
