Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Reliance Steel & Aluminum expects a strong H2 2021 as demand is expected to remain strong, influenced by supply constraints, supply chain disruptions, and labor shortages.


Non-residential construction, a large end-market for the company, is expected to improve through the remainder of 2021, the company noted in its Q2 2021 earnings report on Thursday. 


The company is facing a strong backlog of orders and active quoting activity by customers pointing towards robust consumer confidence. Demand in heavy equipment, manufacturing, and automotive is anticipated to remain resilient in H2 2021. 


Commercial aerospace and defense orders are also expected to return to Q1 levels after softening due to COVID-19 related shutdowns in Europe and Asia. The energy market is expected to improve slowly in H2 2021.


Net sales up

Reliance Steel & Aluminum’s sales increased by 5.7pc to 2.7mn not (2.44mn mt) in H1 2021 compared to the same year-ago period. The average selling price rose by 29.5pc to $2,220/nt from $1,714/nt in the same period. 


In Q2 2021, sales rose by 17.5pc to 1.4mn nt from 1.2mn nt in Q2 2020. The average selling price increased by 43.8pc to $2,418/nt from $1,681/nt in the same time frame. The average price also increased by 19.7pc against the preceding quarter as finished steel prices continued growing on strong demand. 


Net sales rose by 36.3pc to $4.6bn in H1 2021 and by 69.3pc to $3.4bn in Q2 2021. 


The gross profit margin improved to 31.7pc in Q2 2021 from 30.4pc in the same quarter a year ago but fell from 33.6pc achieved in the preceding quarter. Gross profit rose by 45.9pc to $2bn in H1 2021 compared to the year-ago period. 

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