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
Read more from Sandy WilliamsLatest in Steel Products

Market says cutting interest rates will spur stalled domestic plate demand
Market sources say demand for domestic plate refuses to budge despite stagnating prices.

U.S. Steel to halt slab conversion at Granite City Works
U.S. Steel said it plans to reduce slab consumption at its Granite City Works near St. Louis, a company spokesperson said on Monday. The Pittsburgh-based steelmaker will shift the production and processing of steel slabs to its Mon Valley Works near Pittsburgh and its Gary Works near Chicago. Citing a United Steelworkers (USW) union memo, […]

SMU Week in Review: September 1-5
Here are highlights of what’s happened this past week and a few upcoming things to keep an eye on.

HR Futures: Market finds footing on supply-side mechanics
As Labor Day marks the transition into fall, the steel market enters September with a similar sense of change. Supply-side fundamentals are beginning to show signs of restraint: imports are limited, outages loom, and production is capped, setting the stage for a market that feels steady on the surface but still unsettled underneath.

Beige Book: US markets remain cautious amidst volatile pricing environment
Sluggish economic activity across the US was largely attributed to uncertainty caused by tariff policies and growing cost pressures, according to the US Federal Reserve’s (The Fed) latest Beige Book report. The Fed’s latest economic report, posted on Sept. 3, consists of economic findings from the six weeks preceding Aug. 25 throughout 12 districts. Economic […]