US steel service center Olympic Steel expects its fourth quarter shipments will fall lower than the prior year.
Fourth quarter shipments are estimated to be between 229,000-231,000st, a decline of 11-12pc compared to the 259,000st it shipped in the same period of 2018. The Ohio-based company shipped 249,000st in the third quarter.
The company said weak demand in October will outweigh a recent pickup in the market as steel mills in the US make a push to increase hot-rolled coil (HRC) prices by $80/st, prompting steel service centers that were not buying back onto the market to fill inventories with lower-priced product.
Third quarter steel shipments fell by 12pc to 249,000st over the prior year, while shipments of specialty metals products rose by 4.3pc to 38,000st.
Year-to-date steel shipments fell by 11pc to 789,000st compared to the prior year, while specialty metal product shipments rose by 11pc to 111,000st.
Olympic Steel's third quarter income shrank to $591,000, down from the $11.6mn it made in the prior year period.
