AMR

Drivers of the pricing:

- Prevailing market rate which differ by region and market cycles are influenced by worldwide
demand from steel
- The availability of steel/material which could be turned into saleable scrap metal.
- Sanctions and trade action including tariff, quotas and restrictions or ban.
- Global production of finished products drives demand for materials used in the steel-making
process, including ferrous recycled scrap metal which is the primary feedstock of EAF mills.
- Demand for purchasing new cars.

Competition:

- AMR competes in the U.S. and in Western Canada for the purchase of scrap metal with large,
well-financed recyclers of scrap metal, steel mills that own scrap yards, and with smaller metals
facilities and dealer.
- AMR’s auto stores compete for the purchase of end-of-life vehicles with other auto dismantlers,
used car dealers, auto auctions and metals recyclers.
- AMR also competes with brokers that buy scrap metal on behalf of domestic and foreign steel
mills.
- Demand for AMR’s products is cyclical in nature and sensitive to general economic conditions
and other factors.
- AMR also competes for the sale of used auto parts to retail customers with other self-service
and full-service auto dismantlers

CSS

Driver of the pricing

- Selling prices are influenced by the price of raw materials, including the cost of recycled ferrous
scrap metal and required consumables including graphite electrodes and alloy
- Selling prices for our finished steel products may also be affected by the price and availability of
steel imports

Competition

- The primary domestic competitors of CSS for the sale of finished steel products include Nucor
Corporation’s manufacturing facilities in Arizona, Utah and Washington, and Commercial Metals
Company’s manufacturing facilities in Arizona and California. In addition to domestic
competition, CSS competes with foreign steel producers, principally located in Asia, Canada,
Mexico and Central and South America, primarily in shorter length rebar and certain wire rod
grades.
- The principal competitive factors in CSS’s market are price, quality, service, product availability
and the relative value of the U.S. dollar.