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

Toronto-based Russel Metals expects the metal service center and steel distributor divisions to remain strong through Q2 2021. North American end markets are anticipated to grow as product supply stays constrained. The energy division, which seasonally slows down in Q2 is expected to rebound in H2 2021 given the extreme slowdown in 2020 as commodity companies resume investments. 


Each segment improved operating profits for Q1 2021 with the metals service centers and steel distributors benefiting from strong demand and price market conditions. The energy division benefited from some restructuring to better position itself in the OCTG and line pipe markets and reduce exposure to market volatility. Demand in energy products began to recover but persists below pre-pandemic levels. 


Russel’s revenue rose by 8.6pc to $885mn in Q1 2021 against the same year-ago quarter and was up 31.9pc compared to the preceding quarter. EBITDA of $129mn was over three times higher than $39mn in the same year-ago quarter and $41mn the preceding quarter. 

Tons shipped climbed by 4pc as selling price increased by 28pc in Q1 2021 compared to the same quarter in 2020.

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