Market Segment
October 17, 2024
Written by David Schollaert
| Fourth quarter ended Aug. 31 | 2024 | 2023 | Change |
|---|---|---|---|
| Net sales | $1,996.1 | $2,209.2 | -9.6% |
| Net income (loss) | $103.9 | $184.2 | -43.6% |
| Per diluted share | $0.90 | $1.56 | -42.3% |
| Full year ended Aug. 31 | |||
| Net sales | $7,925.9 | $8,799.5 | -9.9% |
| Net income (loss) | $485.5 | $859.7 | -43.5% |
| Per diluted share | $4.14 | $7.25 | -42.9% |
Australia’s BlueScope has raised its earnings outlook for the first half of fiscal 2027, citing stronger-than-anticipated performance at its North Star BlueScope mill in Ohio and improved results across several other businesses. The Melbourne-based company said in earnings guidance on Monday that it expects its North American businesses to deliver earnings about two-thirds higher than in the second half of fiscal 2026. North Star is forecast to perform nearly three-quarters better than in that period, when it reported EBIT of AU$484 million (US$339.8 million). BlueScope attributed the North Star uplift primarily to stronger benchmark spreads.
Nucor said on Monday, Oct. 26, that its consumer spot price (CSP) for hot-rolled (HR) coil will be $1,270 per short ton (st) this week, up $15/st from the prior week. The CSP for HR coil from California Steel Industries (CSI) on the West Coast will be $1,340/st, up $20/st from last week. Nucor continues to offer lead times of three to five weeks, according to its letter to customers. You can track mill price announcements on our website. Steel Market Update (SMU) published a weekly price assessment on Tuesday, Oct. 20, showing HR coil prices averaging $1,290/st, up $10/st from the previous week. We will update our prices on the evening of Tuesday, Oct. 27.
Earlier this month, retired General David Petraeus, whose resume is as impressive as any I’ve seen, held a fireside chat at the National Press Club with Century Aluminum CEO Jesse Gary and Mark Duffy, the president and CEO of the American Primary Aluminum Association. During that widely reported chat, retired Gen. Petraeus stated that the US was not militarily ready for a conflict. Because the event concentrated on aluminum, and primary aluminum at that, his remarks hit harder than I think the full facts warrant.
Steel production is set to return to California next year. Pacific Steel Group broke ground on its Mojave Micro Mill in Kern County, just outside Los Angeles, earlier this year. It marked what California Governor Gavin Newsom recently touted as the first steel mill to break ground in the state in more than 50 years. The plant is scheduled to begin commissioning in the first quarter of 2027, and the project is expected to create ~700 jobs. Before Pacific Steel, the last mill to break ground in California was the Kaiser Steel plant in Fontana, 50 miles outside of Hollywood. The plant was built to supply the World War II effort and began operating in 1942. It eventually shut down in 1983. Today, the site is home to California Steel Industries (CSI), a joint venture between Nucor and JFE Steel. CSI is a reroller and does not melt its own steel.
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.