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

Russel Metals shipped 19pc fewer tons in the second quarter of 2020 than it did during the same period a year ago, and 14pc below Q1 2020 levels. 

 

The Canadian firm shipped 11pc fewer tons in H1 2020 than it did through the first six months of last year. The pandemic, along with low energy prices, is responsible for difficult business conditions, said John Reid, president and chief executive officer of Russel Metals. 

 

The company achieved revenues of $588mn in the quarter ended June 30, declining by 37pc from $937mn in Q2 2019. Through the first half of the year, revenues decreased by 29pc to $1.4bn from $2bn in H1 2019. 

 

Compared to the same quarter last year, the company’s EBITDA halved in Q2 2019 to $32mn, while it decreased by 51pc to $67mn in H1 2020 from $137mn in H2 2019.

 

Revenues at Russel’s service centers fell by 30pc to $373mn last quarter from $535mn in Q2 2019, and while the average selling price dropped by 13pc from the second quarter last year, it was consistent with Q1 2020. 

 

Energy product revenues halved to $149mn in Q2 2020 from the same period a year ago, as the US and Canadian energy sectors experienced declining rig counts during the period. Consequently, Russel’s energy segment, which includes pipe products like oil country tubular goods, suffered.

 

Q2 revenues in the firm’s steel distributors segment decreased by 36pc to $64mn from $100mn in Q2 2019 on lower demand and steel prices.

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