Distributors/Service Centers
October 17, 2023
James Bouchard To Retire as Esmark CEO
Written by Laura Miller
After more than 40 years in the steel industry, James Bouchard announced he will be retiring as CEO of Esmark Inc., effective Nov. 23.
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Steel Market Chatter this week
In this week's Steel Market Chatter, we explore manufacturing and service center buyers' comments about demand, prime scrap, the Iran War, and expectations for Section 232 tariffs in USMCA negotiations. We'll share a selection of the comments we received in each buyer's own words. Dive in with us into the results and findings of our latest Flat-Rolled Steel Survey.
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.