Steel Products
Russel Metals: OCTG Cases Not Having Much Impact on Market (yet)
Written by Sandy Williams
August 12, 2013
By Sandy Williams
Russel Metals reported second quarter earnings of $20 million on sales of $758 million, as compared to $23 million on sales of $719 millions in 2012.
Revenues dropped 13 percent in the metals service center segment and 29 percent in the steel distributors segment due to lower demand levels and pricing. Energy products increased 63 percent due to acquisition of Comco Pipe and Supply.
President and CEO Brian Hedges was asked to comment on the antidumping and countervailing actions in the OCTG market. So far, he said, the actions have not significantly impacted OCTG markets in the U.S. There has been a slight price increase in seamless products but not much movement in line pipe due to high inventories.
“The importance [of offshore imports] has dropped, the spread between the offshore and the importing and domestic prices is not big enough, I mean, safe enough for lead times,” he said.
Commenting on overcapacity and trade, Hedges said closure of some mills and new products in seamless pipe will have an impact.
“However, we’ve got to remember there’s a large import market in the pipe market, that can be at times 50% of the supply. So if you can block that, then there’s obviously extra capacity for extra product to be sold.”
Sandy Williams
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The difference: The spat with Turkey was a big deal for steel. This time, the 50% reciprocal tariff for Brazil – if it goes into effect as threatened on Aug.1 – hits everything from coffee and to pig iron. It seems almost custom-built to inflict as much pain as possible on Brazil.
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