Matt Dushkin

Matt Dushkin asked if Reliance was observing any material substitution to or away from aluminum due to price volatility, given their presence in both aluminum and steel markets. He also requested color on the plate markets, specifically what is driving their relative strength compared to other products, and whether it's primarily underlying demand or customer restocking.

Answer

Karla Lewis, President and CEO, stated that Reliance has not seen any material substitution between aluminum and steel. Steve Koch, EVP and COO, added that some architectural substitution from copper to aluminum has occurred due to a substantial copper price spike. Regarding plate markets, Koch indicated that strength is driven by customer restocking, mill price increases, and extended mill lead times. He cited energy infrastructure, onshore wind, shipbuilding, and defense work as key demand drivers. Additionally, he noted substitution from sheet to plate due to a tight hot rolled coil market, which suggests real underlying demand.

Matt Dushkin asked if the company was observing any material substitution to or away from aluminum due to price volatility, given its presence in both aluminum and steel markets. He also inquired about the drivers of strength in the plate markets, specifically whether it was due to underlying demand or customer restocking, and how this compared to other products.

Answer

CEO Karla Lewis confirmed no material substitution between aluminum and steel. COO Steve Koch noted some architectural substitution from copper to aluminum due to copper price spikes. Regarding plate markets, Steve Koch indicated strength from customer restocking, mill price increases, and extended lead times, driven by demand in energy infrastructure, onshore wind, shipbuilding, and defense. He also mentioned substitution from sheet to plate due to a tight hot rolled coil market, suggesting real underlying demand.