Alistair Field, CEO and Managing Director says the escalating trade wars that were discussed at the year-end results continue to reduce the demand for steel and aluminium. This reduction in demand for scrap has driven a steep fall in prices.
Automobile sales also continue to fall and this is impacting the demand for twitch, with an accompanying fall in price.
Sims says it expects a recovery over the medium term.
Shares in Sims Metal Management (ASX:SGM) are trading 14.88 per cent lower to $10.70.