Distributors/Service Centers
February 20, 2025
Written by Stephanie Ritenbaugh
| Fourth quarter ended Dec. 31 | 2024 | 2023 | % Change |
|---|---|---|---|
| Net sales | $3,126.6 | $3,337.3 | (6.3%) |
| Net earnings (loss) | $105.3 | $272.7 | (61.4%) |
| Per diluted share | $1.93 | $4.70 | (58.9%) |
| Full year ended Dec. 31 | |||
| Net sales | $13,835.0 | $14,805.9 | (6.6%) |
| Net earnings (loss) | $875.2 | $1,335.9 | (34.5%) |
| Per diluted share | $15.56 | $22.64 | (31.3%) |
Reliance Inc. posted a third-quarter profit more than double that of a year ago on record quarterly sales. The stellar result came thanks to higher steel prices and a jump in tons sold. A government contract for the US border wall with Mexico drove a significant portion of those gains, the company said. And the Phoenix-based service center chain, North America’s largest, predicted that profits would continue to surge in the fourth quarter despite concerns about steel availability and geopolitical instability.
Alro Steel has opened a new, 245,000-square foot facility in Oviedo, Fla., a suburb of Orlando, Fla. The Jackson, Mich.-based service center said the new location would allow it to better serve the Orlando market. The company said the new facility will allow its original location in Orlando, established in 1982, to focus on plate processing. The Oviedo location “significantly increases Alro’s local inventory and processing capacity, providing customers with greater product availability, expanded processing options, and faster shipments,” Alro said in a press release posted earlier this week.
Manufacturing activity improved in several Federal Reserve districts, but conditions remained mixed nationwide, according to the Fed’s Oct. 14 Beige Book report. Demand was strongest in steel, machinery, defense-related products, and data center infrastructure. Steel producers in the Cleveland District reported firm spot market demand. Data center, power-generation, defense, and aerospace projects supported orders. Long mill lead times kept customer inventories lean and prices high. Producers also reported higher orders from truck-trailer and light-vehicle manufacturers. International demand for hydrogen vehicle parts increased.
Sheet buyers found mills slightly more negotiable on price this week, while plate buyers thought mills were less flexible on spot price tags, according to our latest survey data. Every two weeks, SMU surveys service center and manufacturer buyers to see whether mills will negotiate on new spot sheet and plate orders. In this week’s survey, 14% of respondents said mills were willing to talk price to secure an order, up three percentage points from two weeks earlier (Figure 1). This is the highest reading since July 8, when the rate stood at 18%.
US service centers’ flat-rolled steel supply increased marginally in September, gaining ground for only the second time all year. Shipping days of supply rose to 45.9 last month, according to SMU data. That figure marks a 3.7% increase from August. September’s result represents a modest gain after inventories hit a five-year low the previous month. But it’s nearly 16% below September 2025 levels. Sheet inventories have averaged ~45 shipping days of supply over the past six months. Flat-rolled inventories represented 2.18 months of supply in September, up 3.7% from August. However, the figure was 15.5% below September 2025. The month-on-month (m/m) gain in inventories resulted from a boost (+21.2%) in intake that was partially offset by a 5% increase in shipments.