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

Shipping volumes have returned to pre-pandemic levels for US-based Olympic Steel and strong demand, plus historically high metal prices resulted in record sales for the past two quarters. The company anticipates a comparably strong Q3 2021 despite end-use customers traversing supply and labor market restraints in the short term. Olympic Steel management noted an additional borrowing capacity that will support organic growth and potential acquisitions. The new infrastructure bill is expected to support growth in 2022 and going forward. 


Olympic Steel volumes sold were 484,231nt (439,411mt) of carbon flats and 82,075nt of specialty flat metals in H1 2021, up by 8.1pc and 39.3pc against the previous year’s period, respectively. 


Olympic Steel metal service centers consolidated statement revenues grew by 69pc to $1bn in H1 2021 compared to the same year-ago period. Total cost and expenses were 92.7pc of total sales in H1 2021 against a 100pc cost ratio in the same period last year. Net income was $51.6mn in H1 2021 in comparison to the $5.9mn loss the company suffered in the same period in 2020.


Sales in flats rose by 66.4pc to $571.9mn as sales for specialty metals grew by 84.9pc to $264.4mn. Though no tonnage for tubular recorded by the company, sales in the tubular division also climbed by 57.8pc to $183mn.


Gross profit per division increased by 109.7pc to $137.8mn in flats, while specialty steel profits rose by 146.7pc to $21.7mn in H1 2021 against last year’s levels. Tubular profits climbed less with an increase of 22.7pc in H1 2021 against the same year-ago period. 


The average selling price per ton rose by 54pc to $1,181/nt for flats, while it increased by 32.7pc to $3,221/nt for specialty steel. 

Q2 2021 net sales more than doubled at 124pc growth to $556mn from $248mn the previous year’s quarter. Tonnage sold increased by 32.2pc in flats to 244,383nt as specialty metal flats tonnage leaped by 65pc to 40,188nt in Q2 2021 compared to the same year-ago quarter. 

Leave a Reply

Your email address will not be published.