Commercial Metals Co Q2 2022 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Timna Beth Tanners - Wolfe Research, LLC - Analyst : I wanted to follow up on kind of the scrap and the dynamic in the U.S. And I think I understood you saying that you expect to be able to pass through the increase of prices, but it's all happened really quickly. And you're, it sounds like, playing somewhat conservative in terms of the guidance. I guess to ask it a different way, I know that you don't have to buy pig iron, you don't have to buy prime scrap, but everyone who does is scrambling for obsolete. So it sounds like there could be continued inflation in that grade where you do traffic. So just the simple question is, do you see anything that could be different in terms of your historical ability to pass through scrap prices? Because it has been pretty nice and consistent for a while now on long products. That is really the first question. And are you concerned at all about your ability to pass it through and seeing a scramble in even the obsolete grades?

Question: Timna Beth Tanners - Wolfe Research, LLC - Analyst : Okay. And then if I could, the second follow-up -- or the follow-up is that you talked about the European market being particularly tight, and I think that is to reflect the absence of Russia/Ukraine material and some closures of capacity we saw in Spain. But Turkey is shifting its gears to export to the European market. So to that on also -- and also U.S. tends to -- has historically imported some from Russia/Ukraine and other European markets. Is there also a potential for the U.S. market to further tighten if this continues -- if this conflict continues? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MARCH 17, 2022 / 3:00PM, CMC.N - Q2 2022 Commercial Metals Co Earnings Call