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    Distributors/Service Centers

    April 24, 2014

    Steel Technologies to Acquire Stripco

    Steel Technologies, which is a service center and a 50/50 joint venture between Nucor and Mitsui & Co. (USA), announced earlier this week the acquisition of Stripco LLC. Below is the press release provided to Steel Market Update by Steel Technologies:

    LOUISVILLE, KY (April 22, 2014) – Steel Technologies LLC (“Steel Technologies”) today announced its agreement to purchase Stripco LLC, Stripco Sales Company, LLC, and Stripco Express Inc. (collectively, “Stripco”). Stripco is a premier value-added steel processor with operations in Mishawaka, Indiana. The transaction has received governmental approval and is expected to close in early May.

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    SMU flat-rolled market survey results now available

    The results of the latest Steel Market Update (SMU) flat-rolled market survey are now available on our website to all premium members. After logging in, look under the Data tab for Market Reports, and there you will find the Flat-Rolled Survey Results section. Previous survey results are also available on that page. If you need help accessing these results, or if your company would like to have your voice heard in our future surveys, contact smu@crugroup.com.

    Ryerson Q3 profit and sales rise as shipments beat guidance

    Ryerson Holding’s third-quarter sales and net income rose as shipments outperformed the company’s seasonal expectations. Management pointed to demand from data centers and power generation projects, gains in transactional business, and improving contract volumes, while describing demand across end markets as uneven. Chicago-based Ryerson’s latest earnings report released on Thursday shows third-quarter sales rose 8.6% sequentially to $2.18 billion. Shipments rose 1.2% despite the company's guidance for a seasonal decline. Net income attributable to Ryerson was $32 million, compared with $15.5 million in the second quarter. Compared with last year, sales were 87.5% higher and net income rose 316.2%.

    Worthington Steel hits stumbling block in Kloeckner transfer agreement

    Worthington Steel said it did not receive sufficient approval from shareholders of German service center Kloeckner & Co. for a proposed domination and profit and loss transfer agreement (DPLTA). Under German law, a DPLTA gives a parent company the right to issue binding instructions to the management of a subsidiary. Kloeckner held an extraordinary general meeting on Friday, Oct. 23, in Dusseldorf, during which a shareholder vote on the DPLTA took place. At least 75% of the capital represented at the meeting had to vote in favor of the DPLTA for the measure to pass.

    Reliance says caution around foreign buys makes import flood unlikely

    Reliance Inc. is keeping a close eye on inventory as extended lead times, elevated prices, and tight material availability complicate purchasing decisions. Executives at the Phoenix-based service center said on Thursday's third-quarter earnings call that inventory levels were appropriate. The company is reducing excess inventory and focusing on inventory turns. Chief Financial Officer Arthur Ajemyan said inventory turns improved 10% year over year.