CMC Declared Robust Demand for Finished Steel Product

SEATTLE (Scrap Monster): The Commercial Metals Company (CMC) noted that demand for its finished steel products in North America remained robust during the fiscal third quarter 2022.  Several key internal and external indicators pointed to continued strength, it added. The company reported meaningful increase in downstream bid volumes and strong demand from industrial end markets.

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The North America segment reported adjusted EBITDA of $379.4 million, significantly higher by 83% in comparison with $207.3 million during the prior year quarter. The higher EBITDA was mainly on account of record margins on sales of both steel products and raw materials. Steel products recorded fifth straight quarter of year-on-year margin expansion, while margins on raw material sales witnessed expansion for the ninth consecutive quarter, the company press release said.

The shipment volumes of finished steel were essentially unchanged from the prior year period.

The European segment EBITDA surged higher by 142% over the previous year to $121 million, mainly driven by a significant expansion in both shipment volume and margin over scrap. 

During its first five weeks as part of CMC, the new Tensar business generated EBITDA of $4.9 million.

The company expects the strong financial performance to continue in the fourth quarter as well.