Olympic Steel expects elevated demand to continue

North American service center Olympic Steel expects favorable market conditions to continue during the second half of 2018 after second-quarter profits grew on higher average selling prices, its acquisition of Berlin Metals and higher sales of specialty metals.

"Demand for metal products remains elevated. Despite the international trade issues, our customers are anticipating strong business conditions to continue in the second half of the year," Olympic Steel chief executive Michael Siegal said today.

Shipments of carbon flat products fell by 1pc from the same prior-year period to 304,361st, while shipments of specialty metals products surged by 72pc to 38,806st.

The average selling price for carbon flat products rose to $918/st from $769/st in the prior year, while the average selling price for specialty metals flat products fell to $2,509/st from $2,586/st.

Olympic does not report its volumes of tubular and pipe products, but sales in this segment rose by 25pc from the prior year to $76.3mn.

Overall sales rose by 27pc from the prior year to $453mn. Profits on the quarter surged to $15.9mn, up from $4.8mn in the same prior-year period.

The Ohio-based company in April acquired Indiana-based service center Berlin Metals, which operates four coil slitters from at its Hammond, Indiana, facility and posted about $50mn in annual sales.

The location adds to more than 30 Olympic service centers operating in the US and Mexico focused on the distribution of carbon, coated and stainless flat-rolled sheet, coil and plate steel and aluminum products. The company's Chicago Tube & Iron subsidiary distributes steel tubing, bar, pipe, valves and fittings, and fabricates pressure parts for the electrical utility industry.