Olympic Steel Inc Q2 2023 Earnings Call Transcript

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

Question: Samuel J. McKinney - KeyBanc Capital Markets Inc., Research Division - Analyst : First, I wanted to start in pipe and tube. Gross margin was great in the first quarter, typically your strongest quarter, but those strong margins held firm in the second quarter, even though the second quarter typically doesn't see the rebate income that first quarter does? Do you attribute all that margin strength to the value-added lasers and outsourced work? And how sticky are those 30% margins moving forward?

Question: Samuel J. McKinney - KeyBanc Capital Markets Inc., Research Division - Analyst : Okay, Andrew. That's helpful. And then HRC pricing overall declined sharply during the second quarter and has continued to fall in recent weeks. I know your order books weighted more towards contract versus spot. But can you talk us through how you're thinking about carbon flat segment pricing into the third quarter, especially given the seasonal volume effects you're expecting? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. AUGUST 04, 2023 / 2:00PM, ZEUS.OQ - Q2 2023 Olympic Steel Inc Earnings Call

Question: Samuel J. McKinney - KeyBanc Capital Markets Inc., Research Division - Analyst : Okay. And then lastly for me, turning to specialty metals, inventory levels at service centers are continuing to fall, they are at their lowest level in the last couple of years. Can you talk specifically about the impact of those falling inventory levels and if you're feeling any import pressure?