Service Centers
June 27, 2017
Ryerson Expects Margins to Stabilize Over Next Few Quarters
Written by Sandy Williams
Ryerson Holding Corp., a processor and distributor of industrial metals, said end-market shipments to most sectors improved in the second quarter, particularly in commercial ground transportation and HVAC industries. Shipments also increased to the oil and gas sector, while a quarterly year-over-year decline was seen in industrial machinery and equipment, consumer durables, and food processing and agricultural equipment.
In its second quarter guidance remarks, the company noted that U.S. service center volumes were higher in May compared to the prior year, but industry levels were well below May historical averages at 2.1 months of supply. Stronger demand was not enough to overcome continued elevated import levels. The strong dollar in 2017 makes the United States an attractive market “for an oversupplied international market relative to global demand and metal price spreads in the U.S. compared to international pricing,” said Ryerson.
