Olympic Steel, Inc. (Zeus): Analyse du Pestle [Jan-2025 MISE À JOUR]

Dans le monde dynamique de la fabrication d'acier, Olympic Steel, Inc. (Zeus) se dresse au carrefour des défis mondiaux complexes et des opportunités transformatrices. Cette analyse complète du pilon dévoile le paysage complexe de facteurs externes façonnant la trajectoire stratégique de l'entreprise, des politiques commerciales volatiles et des incertitudes économiques aux innovations technologiques et aux impératifs environnementaux. Plongez dans une exploration qui révèle comment Zeus navigue dans les pressions multiformes des domaines politiques, économiques, sociologiques, technologiques, juridiques et environnementaux, se positionnant comme un acteur résilient et avant-gardiste dans l'industrie sidérurgique compétitive.

Olympic Steel, Inc. (Zeus) - Analyse du pilon: facteurs politiques

Impact potentiel des politiques commerciales américaines sur les réglementations sur l'importation / exportation d'acier

En 2024, les tarifs d'importation de l'acier américain restent à 25% Pour la plupart des pays, avec des exemptions spécifiques pour certains alliés. Les importations totales en acier américain en 2023 étaient approximativement 27,4 millions de tonnes métriques.

Pays	Taux de tarif d'importation d'acier	Volume d'importation (2023)
Chine	25%	2,1 millions de tonnes métriques
Canada	0%	5,6 millions de tonnes métriques
Mexique	0%	4,3 millions de tonnes métriques

Négociations en cours de tarif en acier affectant la concurrence du marché international

Les négociations actuelles des tarifs en acier impliquent des partenaires commerciaux clés:

• Discussions en cours sur l'Union européenne sur les réductions de quotas en acier
• Accords bilatéraux potentiels avec la Corée du Sud
• Suite de l'article 232 Implémentations tarifaires

Dépenses d'infrastructure gouvernementales influençant la demande d'acier

La loi sur l'investissement et les emplois de l'infrastructure 2021 alloués 550 milliards de dollars pour les projets d'infrastructure, avec 110 milliards de dollars spécifiquement ciblé pour les infrastructures de transport qui ont un impact sur la demande d'acier.

Secteur des infrastructures	Financement alloué	Demande estimée en acier
Ponts	40 milliards de dollars	3,2 millions de tonnes métriques
Routes	39 milliards de dollars	2,8 millions de tonnes métriques
Transport en public	39 milliards de dollars	1,5 million de tonnes métriques

Changements potentiels dans les réglementations du secteur manufacturier

Les considérations réglementaires émergentes pour le secteur manufacturier comprennent:

• Exigences améliorées de conformité environnementale
• Augmentation des normes de sécurité au travail
• OMSATIONS POUVOIR DE RÉDUCTION D'ÉMISSION DU CARBON

L'Administration de la sécurité et de la santé au travail (OSHA) a proposé de nouvelles réglementations de sécurité manufacturière avec des coûts de conformité potentiels estimés à 1,2 milliard de dollars annuellement dans l'industrie sidérurgique.

Olympic Steel, Inc. (Zeus) - Analyse du pilon: facteurs économiques

Les prix de l'acier fluctuant et la volatilité du marché dans le secteur manufacturier

Au quatrième trimestre 2023, les prix de l'acier les traits à chaud variaient entre 700 $ et 900 $ la tonne. Olympic Steel, Inc. a déclaré des ventes nettes de 1,47 milliard de dollars en 2022, la tarification d'acier ayant un impact direct sur les sources de revenus.

Année	Gamme de prix en acier (par tonne)	Indice de volatilité du marché
2022	$800-$1,200	17.5%
2023	$700-$900	15.3%
2024 (projeté)	$650-$850	14.2%

Récupération économique continue et croissance de la production industrielle

L'indice de production industrielle américaine était de 105,4 en décembre 2023, ce qui représente une croissance de 1,2% en glissement annuel. L'utilisation de la capacité du secteur manufacturier a atteint 76,8% au cours de la même période.

Indicateur économique	Valeur 2022	Valeur 2023	Taux de croissance
Indice de production industrielle	103.6	105.4	1.2%
Utilisation de la capacité de fabrication	74.5%	76.8%	2.3%

Impact des taux d'intérêt sur l'investissement en capital et l'expansion

Le taux des fonds fédéraux de la Réserve fédérale en janvier 2024 est resté à 5,33%. Les dépenses en capital de l'Olympic Steel ont totalisé 22,3 millions de dollars en 2022, les coûts de financement directement influencés par les taux d'intérêt en vigueur.

Année	Taux de fonds fédéraux	Dépenses en capital	Coût d'emprunt
2022	4.25%-4.50%	22,3 millions de dollars	6.5%
2023	5.25%-5.50%	19,7 millions de dollars	7.2%
2024 (projeté)	5.25%-5.50%	20,5 millions de dollars	7.0%

Les risques de récession potentiels affectant les industries de la construction et de la fabrication

Aux États-Unis, les dépenses de construction ont atteint 1,796 billion de dollars en 2023, avec une modeste croissance de 2,1%. Le secteur manufacturier PMI (Index des responsables des achats) a enregistré 47,8 en décembre 2023, indiquant une contraction potentielle.

Métrique économique	Valeur 2022	Valeur 2023	Changement
Dépenses de construction	1,760 billion de dollars	1,796 billion de dollars	+2.1%
Fabrication PMI	50.2	47.8	-2.4

Olympic Steel, Inc. (Zeus) - Analyse du pilon: facteurs sociaux

Demande croissante de production d'acier durable et respectueuse de l'environnement

Selon la World Steel Association, les émissions mondiales de CO2 de l'industrie sidérurgique étaient de 1,85 tonne de CO2 par tonne d'acier en 2022. L'acier olympique fait face à la pression pour réduire l'empreinte carbone, 68% des fabricants signalant la durabilité comme stratégie commerciale critique.

Métrique de la durabilité	Statut de courant en acier olympique	Cible de l'industrie
Réduction des émissions de CO2	Réduction de 0,5% sur l'autre	Réduction de 30% d'ici 2030
Contenu en acier recyclé	42%	50% cible d'ici 2025

Changements démographiques de la main-d'œuvre dans l'industrie de la fabrication et de l'acier

Bureau of Labor Statistics indique que l'âge médian de la main-d'œuvre de fabrication est de 44,5 ans. La composition de la main-d'œuvre d'Olympic Steel montre:

Groupe d'âge	Pourcentage
Moins de 35 ans	22%
35-50	45%
Plus de 50	33%

Accent croissant sur la diversité et l'inclusion du lieu de travail

Les mesures de diversité de l'acier olympique en 2023:

• Femmes sur le marché du travail: 26%
• Représentation minoritaire: 19%
• Diversité de la gestion: 15%

Changer les préférences des consommateurs pour les matériaux de construction respectueux de l'environnement

Le marché des matériaux de construction verte prévoyait de atteindre 573,7 milliards de dollars d'ici 2027, avec une croissance de 47% de la demande en acier durable.

Application en acier durable	Part de marché	Taux de croissance
Construction verte	38%	6,2% par an
Infrastructure d'énergie renouvelable	22%	8,5% par an

Olympic Steel, Inc. (Zeus) - Analyse du pilon: facteurs technologiques

Technologies de fabrication avancées améliorant l'efficacité de la production

Olympic Steel a investi 3,2 millions de dollars dans les technologies de fabrication avancées en 2023. La société a déployé 12 nouvelles machines CNC avec un taux de précision de 97,6%, augmentant l'efficacité de la production de 22,4%.

Type de technologie	Investissement ($)	Amélioration de l'efficacité (%)
Usinage CNC	1,750,000	22.4
Systèmes de soudage robotique	850,000	18.7
Équipement de coupe laser	600,000	15.3

Mise en œuvre de l'IA et de l'apprentissage automatique dans la gestion de la chaîne d'approvisionnement

L'acier olympique a mis en œuvre des solutions de gestion de la chaîne d'approvisionnement en AI avec un investissement de 2,5 millions de dollars. Le système a réduit les coûts de transport des stocks de 17,3% et amélioré la précision de la prévision à 92,6%.

Application d'IA	Réduction des coûts (%)	Précision de prévision (%)
Gestion des stocks prédictifs	17.3	92.6
Optimisation logistique	14.2	89.4

Investissements dans la transformation et l'automatisation numériques

Les investissements de transformation numérique ont totalisé 4,1 millions de dollars en 2023. La mise en œuvre de l'automatisation a réduit les coûts manuels de la main-d'œuvre de 26,8% et augmenté l'efficacité opérationnelle globale de 31,5%.

Initiative numérique	Investissement ($)	Réduction des coûts (%)
Planification des ressources d'entreprise	1,600,000	22.5
Manipulation automatisée des matériaux	1,250,000	26.8
Infrastructure cloud	1,250,000	18.7

Technologies émergentes dans la transformation de l'acier et la science des matériaux

L'acier olympique a alloué 3,7 millions de dollars à la recherche dans les technologies avancées de traitement de l'acier. Les principaux domaines d'intervention incluent les alliages en acier améliorés en nanotechnologie avec un rapport résistance / poids amélioré de 40%.

Domaine de recherche	Investissement ($)	Amélioration des performances
Alliages d'acier nanotechnologie	1,800,000	Augmentation de la résistance de 40%
Métallurgie avancée	1,200,000	Résistance à 35% de corrosion
Traitement durable	700,000	25% d'efficacité énergétique

Olympic Steel, Inc. (Zeus) - Analyse du pilon: facteurs juridiques

Conformité aux réglementations environnementales et aux normes d'émissions

Olympic Steel, Inc. a déclaré des dépenses totales de conformité environnementale de 1,2 million de dollars en 2023. La société adhère aux réglementations de la Loi sur l'air propre de l'EPA avec des niveaux d'émissions actuels à 0,03 tonnes métriques de CO2 par tonne d'acier produites.

Catégorie de réglementation	Coût de conformité	Réduction des émissions
COMPOSITION DE LA COLLE AIR	$742,000	Réduction de 15,4% depuis 2020
Normes de rejet de l'eau	$358,000	92% dans les limites autorisées
Gestion des déchets dangereux	$100,000	100% conforme

Modifications potentielles en matière de sécurité et de droit du travail

Taux d'incident enregistrable de l'OSHA Pour l'acier olympique était de 2,1 pour 100 travailleurs en 2023, contre la moyenne de l'industrie de 3,5.

Métrique de sécurité	Performance de 2023	Amélioration de 2022
Taux de blessures au temps perdu	0,8 pour 200 000 heures	Réduction de 22%
Réclamations d'indemnisation des accidents du travail	17 réclamations totales	36% de diminution

Protection de la propriété intellectuelle pour les processus de fabrication innovants

L'acier olympique détient 6 brevets actifs liés aux processus de fabrication, avec 2,3 millions de dollars investis dans la R&D en 2023.

Catégorie de brevet	Nombre de brevets	Durée de protection des brevets
Processus de fabrication	4 brevets	15 ans restants
Technologie matérielle	2 brevets	12 ans restants

Considérations juridiques en cours dans les accords commerciaux internationaux

L'acier olympique a réalisé un commerce international d'une valeur de 127,4 millions de dollars en 2023, avec Coûts de conformité pour les réglementations commerciales internationales totalisant 456 000 $.

Accord commercial	Valeur d'importation / exportation	Impact tarifaire
USMCA	62,3 millions de dollars	Taux de tarif moyen de 3,2%
Relations commerciales de l'UE	35,6 millions de dollars	Taux tarifaires moyens de 4,7%
Commerce Asie-Pacifique	29,5 millions de dollars	Taux de tarif moyen de 5,1%

Olympic Steel, Inc. (Zeus) - Analyse du pilon: facteurs environnementaux

Accent croissant sur la réduction de l'empreinte carbone dans la production d'acier

L'acier olympique s'est engagé à réduire les émissions de CO2 de 22% d'ici 2025, ciblant une réduction totale de 45 000 tonnes métriques par an. L'intensité de carbone actuelle de la société est de 1,8 tonnes métriques de CO2 par tonne d'acier produites.

Métrique d'émission de carbone	Valeur actuelle	Valeur cible	Pourcentage de réduction
Émissions de CO2	205 000 tonnes métriques	160 000 tonnes métriques	22%

Mettre en œuvre des pratiques de fabrication durables

Olympic Steel a investi 12,7 millions de dollars dans les technologies de fabrication durables, en mettant l'accent sur l'équipement économe en énergie et l'optimisation des processus.

Pratique durable	Montant d'investissement	Économies d'énergie attendues
Fours éconergétiques	5,4 millions de dollars	Réduction de 18% de la consommation d'énergie
Systèmes d'optimisation du processus	4,2 millions de dollars	15% de réduction de la production de déchets

Investissements dans les énergies renouvelables et les technologies vertes

Olympic Steel a alloué 8,3 millions de dollars aux infrastructures d'énergie renouvelable, y compris les installations de panneaux solaires et les partenariats d'énergie éolienne.

Source d'énergie renouvelable	Montant d'investissement	Production d'énergie attendue
Installation du panneau solaire	3,6 millions de dollars	2,5 MW Capacité annuelle
Partenariat d'énergie éolienne	4,7 millions de dollars	3,8 MW Capacité annuelle

Réduction des déchets et initiatives d'économie circulaire dans la fabrication d'acier

L'acier olympique a mis en œuvre une stratégie complète de réduction des déchets, ciblant une réduction de 30% des déchets industriels d'ici 2026. Le taux de recyclage actuel s'élève à 62% des déchets de fabrication totaux.

Métrique de gestion des déchets	Valeur actuelle	Valeur cible	Objectif de réduction
Déchets industriels totaux	45 000 tonnes	31 500 tonnes	30%
Taux de recyclage	62%	75%	13% augmentation

Olympic Steel, Inc. (ZEUS) - PESTLE Analysis: Social factors

Increased Focus on Domestic Supply Chains (Onshoring)

The societal and political push for domestic supply chain resilience (often called 'onshoring' or 'reshoring') is a significant tailwind for Olympic Steel, Inc. as of 2025. This trend, largely driven by geopolitical risk and the desire for greater control over critical materials, directly increases demand for US-based metals service centers.

The US already produces about 75% of the steel it consumes, but the effort to reshore the remaining 25% of demand creates a clear opportunity for companies with extensive North American footprints like Olympic Steel, which operates from 41 facilities across the continent. This shift requires a reliable, domestic partner capable of complex, value-added processing, which is central to Olympic Steel's strategy.

Commitment to Employee Health & Safety

A strong commitment to safety is a core social factor, especially in a heavy industrial sector like metals processing, and it directly impacts operational efficiency and insurance costs. Olympic Steel maintains a robust 'Employee Health & Safety' program, which is overseen by Anthony G. Dominic, the Vice President - Safety, Health and Environment (SH&E), who was promoted to this role in January 2024.

The company focuses heavily on proactive measures, known as 'leading indicators,' to reduce risk before incidents occur. One key metric is the poka yoke (mistake-proofing) program, where employees report and offer solutions to potential hazards. Here's the quick math on recent engagement:

• 2024 Poka Yoke Submissions: 200 total submissions.
• Increase: Submissions grew from 162 in 2023, representing an increase of nearly 23.5%, showing strong employee engagement in the safety culture.

For a company operating in a high-hazard environment, this focus on a 'safety culture of learning' is defintely a key differentiator for attracting and retaining talent.

Corporate Social Responsibility (CSR) and Human Rights

Corporate Social Responsibility (CSR) is no longer a peripheral issue; it's a critical factor influencing investor sentiment, customer procurement decisions, and community licensing. Olympic Steel addresses this through its 'Corporate Citizenship' core value, focusing on community involvement and ethical sourcing.

The company's community impact is primarily driven by employee-organized efforts. For example, in 2024, Olympic Steel employee-organized efforts and contributions supported hundreds of local and national organizations through more than $232,000 of monetary and in-kind donations. Additionally, their long-running 'Working for Wishes' program has raised over $1.7 million since its inception, granting nearly 170 wishes for the Make-a-Wish Foundation®.

On the human rights front, the company maintains a clear policy of ethical compliance, specifically committing to not buy, sell, or use any conflict minerals, addressing a key supply chain concern for global manufacturers and investors.

Skilled Labor Shortages in Metals Processing

While the onshoring trend presents a market opportunity, the persistent US-wide skilled labor shortage in manufacturing remains a significant operational challenge for Olympic Steel and the entire metals processing sector. This shortage is worsening due to an aging workforce and an insufficient pipeline of new, skilled workers.

The challenge is structural: the US manufacturing sector is projected to face a shortfall of nearly 1.9 million workers by 2033, with 3.8 million roles needing to be filled. This talent scarcity forces companies like Olympic Steel to compete aggressively for skilled tradespeople (e.g., welders, CNC operators, maintenance technicians), driving up labor costs and potentially limiting capacity expansion.

Here's the quick math on the industry's labor market reality:

Metric	US Manufacturing Industry Data (2025 Context)
Projected Unfilled Jobs (by 2033)	Nearly 1.9 million
Average Annual Employee Earnings (Pay + Benefits)	More than $102,000
Retirement Wave (Skilled Workers by 2030)	2.7 million workers expected to retire

The high average salary shows that the issue isn't just a wage problem; it's a fundamental skills and demographic gap. Olympic Steel must continue to invest in automation (like collaborative robots) and internal training programs to mitigate this risk and maintain its operational capacity.

Olympic Steel, Inc. (ZEUS) - PESTLE Analysis: Technological factors

Olympic Steel, Inc. is actively using technology investment to drive margin expansion and shift its business mix toward higher-value products, which is defintely the right move in a cyclical industry. This strategic focus is clearly visible in the company's 2025 capital expenditure plan, which prioritizes organic growth through advanced processing equipment and automation.

The core of the technology strategy is to move beyond basic distribution and processing toward complex, value-added services that command better pricing power and insulate the company from commodity price volatility. This isn't just about buying new machines; it's about fundamentally changing the product mix to capture greater profitability.

The 2025 capital expenditure (CapEx) plan is set at $35 million, primarily funding organic growth through automation and new equipment.

For the 2025 fiscal year, Olympic Steel has a robust capital expenditure (CapEx) plan set at a target of $35 million. This spending is overwhelmingly focused on organic growth initiatives, specifically the integration of new processing technology and automation across its facilities. In the first half of 2025 alone, the company had already spent $17.5 million in capital expenditures, showing the plan is well underway. This investment is crucial for enhancing productivity, improving safety, and expanding overall capability, which are all levers for long-term margin improvement.

Here's the quick math on the operational context for this CapEx:

Metric (Q2 2025)	Value	Purpose of CapEx
Sales	$496 million	Supporting sales growth through expanded capacity.
Adjusted EBITDA	$20.3 million	Enhancing operational efficiency to boost this metric.
Operating Expenses	$110.4 million	Automation aims to control and reduce the growth rate of these costs.
Target Net Margin (2028 Forecast)	2.3% (from 0.7% in Q3 2025)	The ultimate goal of all technology investments.

Investments in new processing technology, like high-speed lasers, are intended to shift the product mix toward higher-margin, value-added offerings.

The technology being deployed is specifically designed to enable more complex, precision-based work. Analysts note that the CapEx is funding equipment such as high-speed lasers and cut-to-length lines. This investment directly supports the strategic goal of diversifying the product mix away from lower-margin, commodity-style processing. Fiber laser cutters, for instance, offer high precision and fast cutting speeds for a wide range of metals, including stainless steel and aluminum, which are key to the company's Specialty Metals Group.

The shift is focused on increasing the share of value-added products, which include:

• Precision cutting and profiling (e.g., high-speed laser cutting)
• Advanced fabrication and welding services
• Custom sheet metal enclosures and racks

New equipment is expected to become fully operational by year-end 2025 through early 2026, boosting efficiency and capability.

The timeline for these critical technological upgrades is near-term. New processing and automation equipment funded by the 2025 CapEx plan began arriving in the second quarter of 2025, and management expects it to become fully operational by year-end 2025 through early 2026. This is a tight window, but successful deployment is critical for realizing the anticipated benefits. If the rollout is smooth, the company should see a material uplift in productivity and lower unit costs starting in the first half of 2026. This equipment is the engine for future earnings growth.

The company cites data centers and fabrication as key multi-quarter demand catalysts for its products.

Olympic Steel is strategically positioned to capture demand from strong secular trends that require advanced metal fabrication. Increased inquiries for fabrication services are rising as original equipment manufacturers (OEMs) look to onshore or outsource manufacturing in the U.S., a trend accelerated by new tariffs. Furthermore, the explosive growth in data centers, driven by AI and cloud computing, is creating unprecedented demand for fabricated steel components like server racks, enclosures, and cooling systems. Each large data center facility can require up to 20,000 tonnes of steel. Olympic Steel's investment in high-speed, precision fabrication technology directly targets this multi-quarter demand from high-growth sectors, offering a clear path to sustained revenue growth beyond traditional industrial markets.

Olympic Steel, Inc. (ZEUS) - PESTLE Analysis: Legal factors

Major Legal Risk: Shareholder Investigations into the Ryerson Merger

You need to be aware that the proposed all-stock merger with Ryerson Holding Corporation is currently under intense legal scrutiny from multiple shareholder rights law firms, including Halper Sadeh LLC and The Ademi Firm. This is a material legal risk that could delay or even derail the transaction.

The core of the investigation is whether Olympic Steel's Board of Directors breached their fiduciary duties by failing to secure the best possible value for shareholders. Under the terms announced in October 2025, Olympic Steel shareholders are set to receive 1.7105 shares of Ryerson common stock for each Olympic Steel share they own. The total deal is valued at approximately $791.73 million, which represented an implied value of $40.33 per Olympic share and a 35.12% premium over the stock's last closing price before the announcement. Still, the existence of multiple investigations suggests a defintely challenging path to closing, which is currently expected in the first quarter of 2026.

Merger Legal Risk Factor	2025 Financial/Deal Metric
Acquirer	Ryerson Holding Corporation (RYI)
Transaction Value	Approximately $791.73 million
Exchange Ratio	1.7105 Ryerson shares per Olympic Steel share
Implied Value per ZEUS Share	$40.33 (at announcement)
Olympic Shareholder Ownership in Combined Entity	Approximately 37%

Compliance with Section 232 Steel Import Tariffs

Compliance with U.S. trade law, particularly the duties imposed under Section 232 of the Trade Expansion Act of 1962, is critical for Olympic Steel, given its position as a domestic metals service center. This legislation is the legal basis for significant tariffs on imported steel and aluminum, which directly impacts the cost of raw materials and the competitive landscape for domestic producers.

In a major shift in 2025, the tariff rate on steel and aluminum imports was increased from 25% to 50% for most countries, effective June 4, 2025. This dramatic increase doubles the import cost for non-exempted sources, legally reinforcing the competitive advantage for domestic steel suppliers like those Olympic Steel sources from. The company must rigorously track the country of origin and steel content of all imported products to ensure compliance with the new 50% tariff and avoid severe penalties or supply chain disruption.

Formal Compliance Policies and Governance Oversight

The company maintains a strong legal and ethical compliance framework, which is standard practice for publicly traded firms. This framework is overseen by the Board's Nominating and Governance Committee, ensuring top-down accountability for corporate conduct.

The key policies in place help mitigate regulatory and reputational risk across global operations and supply chains. This is not just a box-checking exercise; it's a necessary defense against complex international laws.

• Anti-Corruption Policy: Mandates compliance with laws like the Foreign Corrupt Practices Act (FCPA), prohibiting bribery and improper payments in all business dealings.
• Conflict Minerals Policy: Requires due diligence from suppliers to ensure materials like tin, tungsten, tantalum, and gold do not finance armed groups in the Democratic Republic of Congo or adjoining countries.
• Business Ethics Policy: Applies to all employees, officers, and directors, requiring the highest standards of integrity and honesty, and is supported by an independent, confidential Whistleblower Hotline.

Strict Adherence to Occupational Safety and Health Administration (OSHA) Regulations

As a metals service center and fabricator, Olympic Steel's operations are inherently high-risk, making strict adherence to OSHA regulations mandatory. The legal risk here is two-fold: direct penalties from the agency and the potential for severe litigation following a workplace incident.

OSHA enforcement is getting more expensive. Effective after January 15, 2025, the maximum penalty for a Serious or Other-Than-Serious violation is $16,550 per violation, while a Willful or Repeated violation can cost up to $165,514 per violation. For context, in 2024, Olympic Steel incurred a workplace safety violation fine of $28,000 and another for $16,594, indicating a need for continuous improvement in safety protocols to avoid the higher 2025 maximum penalties.

Olympic Steel, Inc. (ZEUS) - PESTLE Analysis: Environmental factors

The environmental profile for Olympic Steel is fundamentally different from a primary steel producer, which is a key competitive advantage in a carbon-conscious market. You should view the company's environmental risk as primarily regulatory compliance and energy efficiency, not heavy industrial pollution risk.

The latest available data is for the 2024 fiscal year, which is what we must use to project into 2025 until the next Corporate Responsibility Report is released. The most significant near-term event is the planned merger with Ryerson Holding Corporation, which will immediately and substantially alter the combined entity's environmental footprint and reporting complexity.

Olympic Steel commits to complying with all federal, state, and local environmental laws and regulations.

Olympic Steel's formal Environmental Policy dictates strict adherence to all federal, state, and local environmental laws and regulations, which is the baseline for any responsible operation.

This commitment is backed by an Environmental Management System (EMS) that meets the requirements of the most recent International Organization for Standardization (ISO) designation, ensuring a structured approach to environmental performance.

To be fair, regulatory compliance is an ongoing, costly effort for any industrial company. While environmental-specific fines are not prominent in recent disclosures, the company did incur penalties in 2024 related to workplace safety or health violations, totaling at least $44,594 across two separate incidents, which highlights the need for continuous operational vigilance that extends to environmental practices.

The company's role as a metals service center (distributor/processor) results in a relatively low carbon footprint compared to primary steel mills.

This is the single most important factor for investors looking at Olympic Steel's environmental standing. As a metals service center, the company warehouses, processes, and distributes metal products, but it does not perform primary metal production (like smelting iron ore).

This distinction means Olympic Steel avoids the most carbon-intensive processes in the steel value chain, such as the use of metallurgical coal in Blast Furnace-Basic Oxygen Furnace (BF-BOF) production, which accounts for the majority of the steel sector's emissions.

The company's core environmental contribution is through the circular economy, recycling nearly 55,000 tons of scrap metal in 2024, which mills re-use in their processes to make raw material.

A formal policy commits to the reduction and prevention of pollution by continually improving environmental performance.

The formal policy is actionable, committing to the reduction and prevention of pollution by continually identifying opportunities and improving environmental performance across all business aspects.

This commitment translates into concrete operational metrics, primarily focused on energy use and waste reduction:

• Electricity efficiency was 8.80 kWh/sq. ft. in 2024, down from 10.53 kWh/sq. ft. in 2019.
• Natural gas usage was approximately 1.02 million thermal units in 2024, a 20% decrease year-over-year.
• The company's electricity consumption derived from renewable sources was 19.8% in 2024.
• Water usage across the enterprise in 2024 was 12,850,405 gallons.

They are 96% complete in updating their facilities to lower-energy LED lighting, a simple but defintely effective efficiency gain.

Monitoring and measuring Greenhouse Gas (GHG) emissions is an ongoing effort to prepare for potential future carbon-related legislation.

Olympic Steel recognizes the need to monitor and measure its Greenhouse Gas (GHG) emissions, working with a metals industry-specific consulting firm to measure emissions and monitor compliance with changing legislation.

While the company has not yet set a public net-zero target or disclosed its full Scope 3 emissions, its Scope 1 (direct) and Scope 2 (indirect from purchased energy) emissions are reported in its Corporate Responsibility Report.

For context, the industry is already shifting: major steel producers like U.S. Steel are targeting net-zero Scope 1 and 2 emissions by 2050, and the World Steel Association has expanded its 2025 Sustainability Indicators to include a broader range of GHGs.

Here's the quick math on their resource intensity based on the latest available data for 2024:

2024 Environmental Metric	Amount/Value	Context/Notes
Scrap Metal Recycled	Nearly 55,000 tons	Direct contribution to the circular economy.
Natural Gas Usage	1.02 million thermal units	Represents a 20% decrease year-over-year.
Renewable Electricity Share	19.8% of total electricity consumption	Calculated using eGRID data released January 30, 2025.
Total Water Usage	12,850,405 gallons	Used across the entire enterprise.

The key action for you now is to track the environmental integration plan following the Ryerson merger announcement in March 2025; that combined entity will face a new level of scrutiny and reporting complexity on its total carbon footprint.