Steel Mills

Ryerson Revenue Rises on Strong Shipments and Pricing in 2Q

Written by Sandy Williams


Metals distributor and processor Ryerson Holdings is expecting stronger revenue in the second quarter due to an increase in tons sold and higher average selling prices. Year-over-year volume growth was evident in nearly all end markets, notably in commercial ground transportation, consumer durable equipment and industrial equipment, the company said.

Pricing is continuing to improve in the second quarter and manufacturing remains strong, said Ryerson. With May steel imports receding, service center volumes up 5.0 percent January through May, and industrial production showing 3.5 percent growth this year, Ryerson expects continued shipment strength.

Looking forward to the third quarter, the company said: “Ryerson expects modest pricing increases in the third quarter of 2018 as June 2018 commodity prices for CRU hot-rolled carbon steel, Midwest aluminum, and the stainless 304 surcharge are trending above average second-quarter 2018 prices. Ryerson anticipates average inventory costs to rise in the third quarter of 2018 as gross margins stabilize. However, Ryerson believes that end market demand will remain stronger than historical averages for the second half of 2018 due to inventory dislocations caused by trade actions and improved U.S. industrial demand.”

Ryerson anticipates revenue to be in the range of $1.04 billion to $1.05 billion for the second quarter, compared to $941 million in the first quarter of 2018 and $875 million in the second quarter of 2017. 

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