By Adam L. Cataldo
Friedman Industries, a manufacturer and processor of steel products, said multiple domestic producers have raised their prices for hot-rolled coil since the end of its second quarter on Sept. 30.
On the outlook for steel prices:
“From the end of the second quarter and through the date of this release, multiple domestic steel producers have announced price increases for hot-rolled coil,” the company said. “According to these announcements, the base price for HRC has increased approximately $300 per ton in total.”
On the outlook for lead time:
“The company is currently seeing the lead time for production at steel mills extend into calendar 2024 which is supportive of the increasing HRC prices. The company believes it is positioned well to support our customers’ needs and expects margin improvement during the fiscal third quarter and continuing into the fiscal fourth quarter.”
On the outlook for sales in 3Q:
“The company expects sales volume for the third quarter of fiscal 2024 to be slightly lower than the second quarter volume due primarily to the seasonal impact of holidays.”
On steel prices in the second quarter:
“We experienced a significant decline in steel prices entering the second quarter with that trend continuing to the end of the quarter,” the company said. “The decline in revenue was primarily attributable to the average steel price for the 2022 quarter being higher than the average steel price for the 2023 quarter with this price differential being partially offset by sales volume increasing from approximately 117,000 tons in the 2022 quarter to approximately 129,000 tons in the 2023 quarter.”
Write to Adam Cataldo at [email protected]
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