Commercial Metals Expecting Infrastructure Demand

Commercial Metals Company announced net sales of $1.1 billion for earnings of $7.2 million for first quarter 2017, ending Nov. 30, 2016. Metal margins in the Americas Mills segment took a hit of 17 percent in Q1 due to lower selling prices resulting from continued import pressure, scrap price volatility and market uncertainty. Average selling price fell $7 per ton or 10 percent compared to Q1 2016.

Rebar imports have negatively impacted margins in the United States. A preliminary countervailing duty ruling on rebar imports from Japan, Taiwan and Turkey has been delayed until February 21. A second remand of the 2014 antidumping case against Turkey is due from Commerce on January 13. Rebar imports declined 9 percent year over year in CMC’s first quarter but are still near historic highs, preventing U.S. companies from improving mill utilization rates and margins, said CEO Joseph Alvarado.