Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

The COVID-19 virus could upend Commercial Metals Company’s outlook that includes a good fabrication backlog, bidding activity and above-average mill margins. CMC, therefore did not provide a forward guidance while reporting its Q2 2020 earnings.

The company shipped 1.01mn t (917,164mt) of ferrous and 115,000t of non-ferrous materials during its six months ended February 29, 2020, down from 1.5mn t of ferrous and 122,000t of non-ferrous material during the six months ended February 28, 2019. During Q2, the company increased its shipments of ferrous and non-ferrous material to 519,000t and 58,000t, respectively, from its Q12020 ferrous and non-ferrous shipments of 49,000t and 57,000t, respectively. CMC’s shipments peaked in Q4 2019 at 559,000t of ferrous and 60,000t of non-ferrous material.


For the six months ended February 29, 2020, the company sold ferrous and non-ferrous material at $204/t and $2,044/t, respectively down from $269/t for ferrous but up from $1990/t for non-ferrous sales. During Q2 2020, CMC sold ferrous material for $226/t, while non-ferrous was sold for $2,044/t both up from $182/t for ferrous and $1,983/t for non ferrous in the previous quarter. 


Rebar shipments from CMC’s Americas mills for the first six months of the fiscal, increased to 1.7mn t from 1.3mn t during the same period in the previous fiscal. During Q2 , the mills shipped 830,000t of rebar down from 881,000t in Q1 2020. 


During H1 2020 the company’s merchant and other shipments increased to 642,000t from 639,000t during the prior year period. In Q2 2020, CMC’s shipments of the material decreased to 317,000t from 325,000t during the previous quarter, and below 319,000t shipped in Q4 FY2019.


CMC’s Americas fabrication shipped 779,000t in the first six months of the fiscal, significantly above 715,000t it shipped during the prior year period. During Q2 2020, shipments fell to 366,000t from 413,000t in Q1, and from 448,000t in Q4 2019.


From its international mills, CMC shipped 267,000t of rebar in H1 2020, up from 146,000t in the previous year. During Q2 2020, its rebar shioments increased to145,000t from 122,000t in Q1, but were below the 151,000t it shipped in Q4 2019.


CMC also shipped 451,000t of merchant and other from its international mills in H1 2020, which is below the 550,000t in the previous year. During Q2 2020, the company’s shipments increased to 235,000t from 216,000t in the previous quarter, but still below 237,000t shipped during Q4 2019.


During the six months ended February 29, 2020, CMC’s total net sales amounted to $2.73bn, up from $2.68bn during the same period last fiscal. During Q2 2020, the company’s total net sales reached $1.34bn, down slightly from $1.38bn in Q1, and down from $1.54bn in Q4 2019.

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