Steel Products

Ryerson Q2 Earnings Dip, Demand Seen Weakening
Written by Ethan Bernard
July 31, 2023
Ryerson
Second quarter ended June 30 | 2023 | 2022 | % Change |
---|---|---|---|
Revenue | $1,344 | $1,744 | -23% |
Net income (loss) | $38 | $196 | -81% |
Per diluted share | $1.06 | $5.10 | -79% |
Six months ended June 30 | |||
Revenue | $2,750 | $3,492 | -21% |
Net income (loss) | $85 | $360 | -76% |
Per diluted share | $2.33 | $9.26 | -75% |
Ryerson said it expected demand to weaken in the near term after it reported a slump in second-quarter earnings.
The Chicago-based service center group reported net income of $38 million in Q2’23, down 81% from $196 million a year earlier on revenue that fell 23% to $1.34 billion.
“Shifting consumer spending patterns, higher interest rates, quieted but still present financial system stress and tightening, as well as an economic recovery in China that has failed to materialize, all contributed to a subdued manufacturing macro environment during the quarter,” Ryerson president and CEO Eddie Lehner said in a statement on Monday, July 31.
“As we have during past counter-cycles, we will take out non-value-added costs, flex expenses down, and better optimize our industrial metals inventories as we move through the third quarter and back-half of the year,” he added.
Carbon steel shipments fell 6% year over year in Q2 to 384,000 tons as average selling prices decreased 20% to $1,779 per ton in the same comparison.
Aluminum shipments remained steady at 51,000 tons in Q2 vs. the same period last year as average selling prices dropped 14% to $5,824 per ton.
Stainless steel shipments of 59,000 tons in the quarter dropped 6% year over year, while average selling prices slid 22% to $5,729 per ton.
Looking ahead, Ryerson expects slowing demand conditions to continue in Q3’23, with customer shipments seen falling by approximately 2% to 4% sequentially.
Additionally, the company said it anticipates Q3 net sales to be in the range of $1.25 billion to $1.3 billion, with average selling prices decreasing 1% to 2%.
Ryerson has approximately 100 service center locations through the US, Canada, Mexico, and China.

Ethan Bernard
Read more from Ethan BernardLatest in Steel Products

September energy market update
In this Premium analysis we examine North American oil and natural gas prices, drill rig activity, and crude oil stock levels through September. Trends in energy prices and rig counts serve as leading indicators for oil country tubular goods (OCTG) and line pipe demand.

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.