Canadian metal distributor and processor Russel Metals projects the positive momentum in steel prices to continue into the third quarter.
July and August were slow months due to seasonal shutdowns for maintenance across the industry. However, the company still expects demand to be strong. That said, it also expects limited inventory levels and rising inventory costs, and extended lead time for delivery to continue through the next quarter.
The ferrous and non-ferrous metal processor’s revenue in H1 2021 rose to C$1.9bn ($1.5bn) compared to C$1.4bn in H1 2020. In Q2 2021, its revenue increased to C$1bn compared to C$588mn.
Russel’s adjusted EBITDA in the first half of the year increased to C$307mn compared to C$71mn in H1 2020 and rose to C$178mn in Q2 2021 from C$32mn in Q2 2020.
($1= C$1.25)