Metal Service Centers NAICS 423510

Nov 23, 2025 - Ryerson-Olympic Steel Merger

• The metal service center industry is becoming increasingly consolidated with the merger of Olympic Steel and Ryerson, The Fabricator reports. The proposed merger, slated to close in 2026, will form the US’s second-largest metal service center (behind Reliance) and is expected to generate about $120 million in annual synergies, according to the companies. The Ryerson-Olympic Steel merger shows that buyers and service centers will pursue deals to cut costs and diversify product mix while demand is weak. Smaller competitors are likely to face stiffer competition in a more highly concentrated industry, with the two leaders, Reliance and the newly-merged company, serving a sizable portion of the metals market. The Fabricator notes that when it comes to value-added services, they might win on volume, but are unlikely to match the focus of a contract metal fabricator that serves a collection of disparate and yet still complementary market niches.
• Shipments by US steel mills rose 12.7% in September compared to a year ago and were up 3.5% versus August as mills ramped up their output, according to the latest data from the American Iron and Steel Institute (AISI). Year to date in September shipments were up 4.6% from the same period last year. The YTD comparison shows the following changes: corrosion resistant sheet and strip, up 4%; hot rolled sheet and strip, down 1%; and cold rolled sheet and strip, down 4%, per the AISI. Steel mills have continued to boost their output in recent months, operating at a capability utilization (capacity) rate of 76.7% in the week ended November 8, compared to a 72.6% capacity rate in the comparable week in 2024. Tariffs of up to 50% on imported steel are among the factors likely driving the increase in US mill operating rates.

• To avoid stiff tariffs on imported metals and benefit from the reliability and timeliness offered by shorter supply chains, more companies are considering sourcing from US-based mills, according to metals service center Mead Metals. Makers of metal products who reshore their supply chains can benefit from relationships with local mills and service centers that offer just-in-time shipping and proximity advantages that reduce inventory, logistics costs, and lead times. But with demand for local suppliers rising, purchasing managers could see tight availability for certain metals, underscoring the need for proactive sourcing and flexible inventory strategies, according to Mead Metals. As for tariffs, a 2019 Federal Reserve study found that while tariffs imposed by the first Trump administration increased US steel production, higher input costs from tariffs reduced manufacturing jobs, relative to what it would have been without tariffs, and raised production costs for metal-based goods.
• Producer prices for metal and mineral merchant wholesalers jumped 16.9% in August compared to a year ago, after falling 6.2% in the previous August-versus-August annual comparison, according to the latest US Bureau of Labor Statistics data. Metal prices are volatile due to fluctuations in foreign and domestic production capacity, supply and demand, tariffs, and other factors all of which have an impact on metal service centers procurement costs and sales. Employment by the industry grew 4.5% year over year in July, while average wages at metal and mineral (except petroleum) merchant wholesalers declined 6.9% over the same period to $26.88 per hour, BLS data show.