Steel Mills

Olympic Positioned for Promising Q2
Written by Sandy Williams
April 30, 2014
Higher volumes increased Olympic Steel net sales 2.6 percent to $347 million in Q1 2014 from $338 million a year ago. Net sales increased sequentially by 19 percent despite adverse shipping conditions. Net income totaled $2.8 million, down from 5.16 million in 2013
Flat steel volume increased 3 percent y/y to 299,000 tons for the quarter for net sales of $287 million. Tubular product shipments increased but sales fell by a little more than $1 million to $61 million due to lower average prices.
Steel prices were under pressure during first quarter, falling in mid January and continuing for the next 60 days. Prices rebounded for carbon steel, nickel and stainless steel by the end of the quarter.
During the conference call, Chairman and CEO Michael Siegal said order books are picking up going into the second quarter but it was too early to comment on Q2 based on April. He said Olympic Steel is seeing double digit growth from March.
David Wolfort, president and COO, commented that, “prices have recovered the entire first quarter dip, and now offers are currently being made at the highest levels of the year. Channels remain tight with reasonable to lean service center inventories as a result well publicized supply side disruptions, further supporting higher market prices.” He added, “The set up for the next few months looks promising. We are well positioned with inventory and available capacity through our facility network and a healthy pricing environment.”
Weather issues impacted revenue from multiple-day site closures and increased transportation costs. Occupancy costs included $300,000 of incremental costs associated with heat and building maintenance and snow coverage.
Siegal said the company’s growth strategy is focused on value added opportunities that mitigate distribution costs.

Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills

August US mill shipments slip but still higher than last year
The American Iron and Steel Institute reported a decline in the monthly shipments of US mills from July to August.

TransPod, Algoma, Supreme Steel linkup anchors Canadian steel in high-speed transit build
The three Canadian companies have announced a strategic partnership to support the development of an ultra-high-speed transit line from Edmonton to Calgary.

Metallus, USW agree to tentative four-year labor deal
Metallus and the United Steelworkers (USW) have agreed to a tentative four-year labor contract.

ArcelorMittal Dofasco resumes cokemaking after emergency maintenance
The Canadian steelmaker reported on Sept. 30 that “urgent maintenance” was needed in its coke plant off-gas systems. The work required coke oven gas from the No. 2 coke plant to be flared for most of that week.

AISI: Raw steel production ticks back down
US raw steel output declined last week after increasing the week prior, according to the latest data from the American Iron and Steel Institute (AISI). Output has see-sawed from week to week since mid-August. Still, it has remained historically strong over the past four months and has held near multi-year highs since June. Domestic mills […]