Steel Products

Russel Metals Sells TriMark Shares
Written by Becca Moczygemba
August 1, 2023
Canadian metals distributor Russel Metals announced it is selling off 50% of its equity in TriMark Tubulars Ltd. to Japan’s Marubeni-Itochu Tubulars Ltd. (MITI).
The value of the sale is approximately CAD$61 million (US$46 million) and should be finalized in Q3, the company in a press release on July 31.
The two companies merged their respective oil country tubular goods (OCTG) and line pipe businesses in 2021 to create TriMark Tubulars. Under TriMark, Russel was able to convert C$109 million into cash and retain a C$32-million equity interest in the company.
In Q1 of 2023, Russel recorded sequential growth in each of its business categories. Although, year-over-year results were not as strong.
Combined with the dividends from TriMark, the sale of Russel’s interest will give the company a return on investment of over 200%, the company said.
“This transaction represents the final step to our staged exit from the OCTG/line pipe business. Over the past three years, we have repatriated approximately (C)$375 million of capital from the OCTG/line pipe business and have reinvested in our core segments at superior returns with lower risk,” John Reid, president and CEO of Russel Metals, said in the release.
“Additionally, we have retained significant financial flexibility to opportunistically grow our company and return capital to our shareholders,” he added.

Becca Moczygemba
Read more from Becca MoczygembaLatest in Steel Products

CRU: EC to toughen steel safeguards
The European Commission proposes cutting its steel import quota by almost half, with volumes exceeding the limit facing 50% duties. The region’s steel industry welcomes the move, while other steel-producing nations fear the consequences. CRU published an insight before this announcement, noting that more restrictive trade policy could significantly raise the cost of marginal supply […]

US and Canadian rig counts stabilize
US counts continue to hover just above historic lows, while Canadian figures remain comparatively healthy.

Plate market sources critique mill hikes amid current market conditions
Following spot market plate price increase notices issued by domestic mills this past week, participants are contemplating the rationale behind the increases and whether they will stick. Some sources anticipate that current market conditions will shift in November and believe the increases may set a new "pricing floor."

Oregon Steel Mills lifts plate prices by $60/ton
Oregon Steel Mills has joined other producers in announcing a price increase of at least $60 per short ton on steel plate.

CRU: Construction of pilot plant for green steel process starts
Voestalpine and partners have begun building an industrial-scale Hy4Smelt demonstration plant in Linz, Austria, which they hope will become key in the decarbonization of steel.