Russel Metals Posts Strong Q1 Following Q4 Loss

Russel Metals reported strong operating profits thanks to “favorable market conditions” across all business segments in the first quarter of 2021. The Canadian metals processor and distributor posted net earnings of $81 million in Q1, up from a loss of $9.0 million in Q4 2020 and up from $11 million year on year (all figures are in Canadian dollars).

Russel’s revenues through the first quarter totaled $885 million, up from $671 million in the prior quarter, while gross margins improved to 28.8% in Q1 compared to year-ago margins of 18.7%. The advances were directly related to improving market conditions and rising steel prices that have pushed results beyond pre-pandemic levels, the company said.

Russel Metals

David Schollaert

David Schollaert is deputy editor-in-chief for Steel Market Update. David joined SMU after more than a decade in the metals and mining industry in a myriad of different roles. Much of his early experience and expertise were within the coverage and analysis of steel-making raw materials and served previously as senior editor of the CRU Prices Service. Most recently, however, before his return to market analysis, David held roles as a metals buyer and an operations manager for raw material suppliers. He can be contacted at david@steelmarketupdate.com or 724-720-1008.

David Schollaert

Latest in Distributors/Service Centers

SMU Survey: Foreign steel momentum eases amid mostly solid demand

SMU flat-rolled market survey results now available

SMU Survey: Mill negotiation rate rises, but price still rigid

US sheet buyers grapple with mill delays as supply pressure spreads

SMU: MOI climbs again in August, on-order pipeline expands