Ryerson Holding Corporation (RYI): PESTLE Analysis [Nov-2025 Updated]

You're right to be scrutinizing Ryerson Holding Corporation (RYI) right now; the metals service center business is hitting a patch of margin compression, even as demand holds steady. While the company is projected to pull in revenue of around $5.0 billion for fiscal year 2025, that figure is normalizing from recent highs, and net income is expected to settle near $150 million, squeezed by high inventory costs and geopolitical trade uncertainty. To make a smart move, you need to see past the commodity price swings and understand the structural forces-from Section 232 tariffs to the push for low-carbon steel-that are truly shaping RYI's next two years.

Ryerson Holding Corporation (RYI) - PESTLE Analysis: Political factors

US-China trade tensions still drive uncertainty on steel and aluminum sourcing.

You're watching the US-China trade relationship, and honestly, the uncertainty is a massive cost driver for Ryerson Holding Corporation. As of June 4, 2025, President Trump doubled the tariffs on steel and aluminum imports from most US trade partners to a steep 50%. This move, coupled with China's retaliatory increase of its additional tariff on US goods to 125% in April 2025, creates a volatile pricing environment.

For a distributor like Ryerson, this means sourcing decisions are now a complex risk-management exercise, not just a procurement one. The company's strength lies in its ability to pivot, using its extensive North American distribution network to mitigate reliance on unpredictable international supply chains. Still, the risk of a sudden policy shift-a trade truce or a further escalation-defintely keeps the market on edge.

Section 232 tariffs on steel and aluminum remain a key factor, impacting import costs and domestic pricing.

The Section 232 tariffs, imposed under the guise of national security, are no longer a simple 25% nuisance; they are a dominant market force. Effective June 4, 2025, the tariff rate on steel and aluminum articles, and their derivatives, was increased to a uniform 50% for nearly all countries. This is a huge change.

The previous tariff-rate quota exemptions for major allies like Canada, Mexico, the European Union, and Japan were largely terminated as of March 12, 2025, forcing them to face the full tariff wall. The only major exception is the United Kingdom, which remains at a 25% tariff rate. Here's the quick math: with US Midwest hot-rolled coil (HRC) steel trading around $800-$815 per short ton as of October 2025, a 50% tariff adds over $400 per ton to imported HRC costs. This makes domestic steel sourcing economically compelling, which benefits Ryerson's domestic processing and distribution model, but it also creates a substantial price floor for all steel products.

Government infrastructure spending (e.g., IIJA) provides a stable demand floor for construction-grade metals.

The Infrastructure Investment and Jobs Act (IIJA) is the most stable, positive political factor for Ryerson's demand outlook. This legislation allocates a total of $1.2 trillion over ten years, with approximately $550 billion in new spending over five years. That's a massive, long-term demand signal.

A significant portion of this is metals-intensive, providing a stable demand floor for the construction-grade products Ryerson distributes. The funding includes roughly $110 billion for roads, bridges, and major projects, plus $66 billion for passenger and freight rail. The American Iron and Steel Institute (AISI) estimates that the total authorized funding could translate into an additional 40 million to 45 million short tons of steel demand over the life of the projects. This is a predictable, multi-year tailwind for demand.

Geopolitical instability in key commodity regions creates supply chain risk for raw materials.

Beyond the direct trade war, broader geopolitical instability is creating real supply chain risk for the raw materials that feed the steel mills Ryerson buys from. The ongoing Russia-Ukraine conflict, for example, continues to disrupt the metallurgical coal (coking coal) market, a critical input for blast furnace steelmaking. The suspension of operations at key facilities, like Metinvest's Pokrovskoe Coal in the Donetsk region of Ukraine, is a concrete example of this supply shock.

Also, political disputes are causing volatility in the iron ore market, as seen in November 2025 when China's state-owned buyer ordered a halt to purchases of a specific type of BHP iron ore due to a contract dispute. This kind of political maneuvering creates price swings and forces mills to scramble for alternative sources. Ryerson mitigates this risk by maintaining a diversified supplier network and leveraging its over 100 North American locations to prioritize localized supply, but the underlying commodity cost volatility remains a key risk to margin predictability.

Ryerson Holding Corporation (RYI) - PESTLE Analysis: Economic factors

Revenue is projected to normalize around $5.0 billion for the 2025 fiscal year, reflecting lower average selling prices.

You need to look past the headline revenue target of $5.0 billion for 2025 and focus on the actual performance trajectory. The reality, based on the latest data, is a revenue normalization driven by lower average selling prices (ASP) for industrial metals. Through the first nine months of 2025, Ryerson Holding Corporation generated revenue of $3,466.5 million. With the company's Q4 2025 net sales guidance ranging from $1.07 billion to $1.11 billion, the full-year 2025 revenue is tracking closer to $4.56 billion. This is a clear signal of market price softening, despite relatively stable shipment volumes.

This revenue figure, while below the $5.0 billion mark, reflects a market adjusting from the extreme pricing peaks of 2022 and 2023. The key takeaway here is that top-line growth is now less about price inflation and more about market share gains and operational efficiency.

Net Income is expected to be approximately $150 million, driven by margin compression and higher operating costs.

The expectation of a $150 million Net Income for 2025 is an aggressive, or perhaps dated, target. The current reality is a net loss, primarily due to margin compression and elevated operating costs. For the first nine months of 2025, Ryerson Holding Corporation reported a cumulative net loss of approximately $18.5 million. Adding the Q4 2025 guidance of a diluted loss per share between $0.22 and $0.28, the full-year net result is projected to be a loss of approximately $26.55 million. This is a significant swing from the target, and it shows the pressure on the bottom line.

Here's the quick math on the margin squeeze:

• Q3 2025 Gross Margin contracted by 70 basis points sequentially.
• The reported Q3 2025 Gross Margin was 17.2%.
• LIFO expense (Last-In, First-Out accounting for inventory) hit $13.2 million in Q3 2025, reflecting commodity price inflation that outpaced selling prices in key categories like stainless steel and aluminum.

Interest rate hikes in 2024/2025 increase the cost of capital for inventory financing and CapEx.

The cost of capital has defintely changed the game for a business that relies heavily on inventory. While the Federal Reserve has shifted to rate cuts in late 2025, the overall environment is still much tighter than in previous years. The Fed funds rate, which influences corporate borrowing, was cut to a target range of 3.75% to 4.00% at the October 2025 meeting, following a similar cut in September. However, this is still a high-rate environment compared to the near-zero rates of the past decade. The Fed's own projections suggest the median level of the federal funds rate will sit at 3.9% by the end of 2025, implying borrowing costs remain structurally higher.

For Ryerson Holding Corporation, this higher cost of capital directly impacts two critical areas: inventory financing and capital expenditures (CapEx). The company's net debt was $470 million at the end of Q3 2025, meaning every basis point of rate change has a material effect on interest expense. Higher rates increase the cost of carrying the substantial inventory required to service a wide customer base, forcing a more disciplined approach to stock levels.

Volatility in steel and aluminum commodity prices directly impacts inventory valuation and gross margins.

Commodity price volatility remains a major economic risk for metal distributors. Ryerson Holding Corporation operates in a market where prices for hot-rolled coil (HRC) steel and aluminum can swing wildly based on global supply, tariffs, and demand signals. This volatility is immediately visible in the LIFO accounting charge; the $13.2 million LIFO expense in Q3 2025 is a concrete example of how rising input costs erode gross margins when sales prices lag.

Furthermore, the ongoing uncertainty around trade policy and tariffs creates significant forecasting challenges. Tariffs on imported steel, for example, are projected to raise inventory valuations by several hundred dollars per ton, which forces service centers to manage higher capital requirements for the same volume of product. This is a constant battle for gross margin protection.

US manufacturing Purchasing Managers' Index (PMI) is showing modest growth, supporting core demand.

The US manufacturing sector, a core end-market for Ryerson Holding Corporation, is showing modest growth but with clear signs of slowing momentum. The S&P Global Flash US Manufacturing Purchasing Managers' Index (PMI) for November 2025 slipped to 51.9, down from 52.5 in October. While a reading above 50 indicates expansion, the decline to a four-month low suggests a softening of industrial demand. This is a headwind, not a tailwind.

The data points to a worrying trend: new orders are slowing, and finished goods inventory is at a record high, which hints at slower factory production ahead. This directly impacts Ryerson Holding Corporation's shipment volumes, as manufacturing customers will draw down their own stockpiles before placing large new orders. The core demand is still there, but the pace is decelerating.

Key 2025 Economic Indicators (RYI)	Value / Range	Implication for RYI
Full-Year 2025 Revenue (Projected)	Approx. $4.56 billion	Normalization from price peaks; lower ASP.
Full-Year 2025 Net Income (Projected)	Approx. $26.55 million Net Loss	Significant margin compression and cost pressure.
Q3 2025 Gross Margin (Excluding LIFO)	18.3% (contracted 70 bps)	Direct evidence of pricing pressure vs. input costs.
Q3 2025 LIFO Expense	$13.2 million	Quantifies commodity price volatility impact on inventory valuation.
Federal Funds Rate (Oct 2025)	3.75% - 4.00%	Higher cost of capital for inventory and CapEx financing.
US Manufacturing PMI (Nov 2025)	51.9 (4-month low)	Modest but slowing core manufacturing demand; risk of inventory overhang.

Ryerson Holding Corporation (RYI) - PESTLE Analysis: Social factors

The social landscape for Ryerson Holding Corporation in 2025 is defined by a tight labor market for skilled trades, a fundamental shift in customer supply chain psychology toward domestic reliability, and increasing investor pressure for measurable Environmental, Social, and Governance (ESG) performance.

Labor shortages in skilled warehouse operations and trucking logistics increase wage pressure and operational costs

The persistent shortage of skilled labor-specifically in warehouse operations, metals processing, and trucking logistics-is a direct headwind to operational efficiency and cost control. While the broader trucking industry saw a deceleration in driver wage growth to just 0.9% in early 2025, the National Transportation Institute projects base pay growth for the for-hire carrier segment at 2.7% for the full year, indicating continued upward pressure on the specialized logistics staff Ryerson Holding Corporation relies on.

This labor crunch, plus rising incentive compensation, translated into a significant financial impact in the first half of 2025. Ryerson Holding Corporation's Warehousing, delivery, selling, general, and administrative (WDSG&A) expenses climbed by $13.6 million in the first quarter of 2025, a 7.2% sequential increase, largely driven by these personnel-related costs. This is a defintely a cost line item to watch. To mitigate the skills gap, the company is focused on internal programs like the Operations Mentorship Program and the Ryerson Academy, which are crucial for developing the 4,300 employees across its network.

Growing customer preference for domestic, shorter supply chains over global sourcing due to reliability concerns

The post-pandemic push for supply chain resilience has matured into a 'reshoring, reimagined' trend in 2025, favoring domestic or near-shore sourcing over purely cost-driven global models. Customers are prioritizing delivery reliability and speed, making Ryerson Holding Corporation's extensive North American footprint a key competitive advantage. The company operates over 110 interconnected facilities across the U.S., Canada, and Mexico, enabling it to provide short, flexible supply chains that minimize geopolitical and logistical risks.

This customer preference is a direct opportunity for Ryerson Holding Corporation to grow its value-added processing business, as proximity allows for just-in-time delivery and custom fabrication. The company's ability to offer dual-sourcing-both domestic and international-gives clients the confidence to adapt quickly as tariffs or global trade dynamics shift. It's all about agility now.

Increased focus on Diversity, Equity, and Inclusion (DEI) metrics by institutional investors and customers

Institutional investors are increasingly linking capital allocation to transparent DEI performance, viewing it as a proxy for strong governance and talent management. Ryerson Holding Corporation explicitly lists 'biased free and anti-discriminatory employee practices' as a key focus area in its Environmental, Social & Governance (ESG) report, recognizing that equal opportunities are essential for attracting and retaining talent in a tight labor market.

The company has established a formal DEI Council and launched Employee Resource Groups (ERGs), including a Women's Sponsorship Program, to build a more inclusive culture across its operations. While specific 2025 workforce diversity percentages are not publicly disclosed in the recent financial filings, the governance structure is in place to address stakeholder demands for transparency, with the ESG Committee reporting periodically to the Audit Committee of the Board of Directors. This focus is a strategic necessity, not just a compliance exercise.

Public perception of the steel industry's role in the circular economy is becoming more scrutinized

The public and industrial customers are increasingly scrutinizing the steel and metals industry's environmental impact, demanding clear evidence of a commitment to the circular economy (recycling and reuse). Ryerson Holding Corporation, as a processor and distributor, plays a critical role in this cycle, handling over 2 million tons of metal annually.

The company is actively responding to this scrutiny by making the 'circular economy' a core focus of its ESG strategy. A key action item is providing customers with supply chain carbon transparency through its proprietary 'Emissions Illuminator' tool. This transparency helps customers in end-markets like construction and manufacturing meet their own sustainability targets. The company is committed to reducing its Scope 1 and Scope 2 emissions, which totaled approximately 96,000 tons of CO2e in 2022, with a long-term goal of an 80% reduction by 2040.

Social Factor Risk/Opportunity	2025 Impact/Metric	Actionable Insight
Skilled Labor Wage Pressure	WDSG&A expenses increased $13.6 million (7.2% QoQ) in Q1 2025 due to personnel costs.	Invest in automation and cross-training to reduce reliance on scarce skilled labor.
Domestic Supply Chain Preference	Leveraging a network of over 110 North American facilities to support the 'reshoring, reimagined' trend.	Prioritize capital expenditure on value-added processing capacity at domestic service centers.
Circular Economy Scrutiny	Ryerson processes over 2 million tons of metal annually, and is targeting an 80% emissions reduction by 2040.	Promote the 'Emissions Illuminator' tool to capture market share from ESG-focused customers.
DEI/Investor Scrutiny	Active DEI Council and new Employee Resource Groups (ERGs) established.	Publish a measurable Board Diversity Matrix in the next Proxy Statement to satisfy institutional investor requirements.

Finance: Track WDSG&A as a percentage of revenue quarterly to monitor labor cost inflation against productivity gains.

Ryerson Holding Corporation (RYI) - PESTLE Analysis: Technological factors

You're watching a traditional industrial metals distributor transform itself into a tech-enabled supply chain manager, and the technological investments Ryerson Holding Corporation is making are defintely not minor. The company is actively deploying capital to automate its physical operations and digitize its customer-facing and back-office processes. This is a clear move to reduce reliance on volatile labor markets, improve precision, and shield margins from commodity price swings.

For 2025, Ryerson's expected capital expenditures are projected to be $50 million, a significant portion of which is dedicated to these technological and operational upgrades, shifting the focus from large-scale installations to optimizing and generating returns on those assets.

Continued investment in e-commerce platforms to handle over 20% of transactional volume by 2026.

Ryerson's e-commerce platform is critical for capturing the high-volume, quick-turn transactional business that offsets the more recessed contractual business. This digital channel provides customers with comprehensive pricing and fast delivery options, moving the company beyond the traditional relationship-based sales model. The focus is clearly working: Ryerson has been increasing its transactional business mix for the fifth consecutive quarter through Q2 2025.

In the first quarter of 2025 alone, the company saw transactional sales increase by 12% YoY (year-over-year), which helped drive market share growth. The strategic goal is to push e-commerce to handle over 20% of total transactional volume by 2026, creating a more scalable and lower-cost sales channel. This is how you build a more resilient revenue stream.

Automation of warehouse operations (e.g., cutting, bending, material handling) to improve precision and reduce labor dependency.

The core of Ryerson's value-add lies in processing, and automation is the key to managing the persistent manufacturing skills gap. The company is actively integrating advanced material handling technologies into its service centers across North America. This isn't just theory; Ryerson is implementing real-world solutions to improve efficiency and safety.

• Deploy Automated Guided Vehicles (AGV) for material transport.
• Use Automated Delivery Vehicles (ADV) and sorting conveyor systems.
• Integrate automated forklifts for improved safety and efficiency.

These investments, funded by the 2025 capital plan, are designed to make service center fundamentals like faster lead times and on-time delivery more reliable, regardless of labor availability.

Use of predictive analytics for inventory management to optimize stock levels against volatile commodity prices.

In the metals industry, inventory management is a high-stakes game. Volatile commodity prices-like hot-rolled steel prices plummeting from $1,000/ton at the start of 2024 to the mid-$600 range by June-can destroy margins if inventory is not managed precisely. Ryerson's strategy relies on advanced planning tools and real-time tracking capabilities to optimize stock levels and react quickly to market trends.

This is where predictive analytics (or advanced planning tools) comes in: it allows the company to maintain a 'flexible enough' inventory approach to capitalize on price trends, rather than just reacting to them. The internal risk management team also uses commodity hedging to lock in metal prices for customers, which helps maintain budget stability and competitiveness in a fluctuating market.

Implementation of enterprise resource planning (ERP) system upgrades to streamline complex multi-location operations.

Ryerson completed a massive Enterprise Resource Planning (ERP) system conversion and integration program by the end of the first quarter of 2024, a project that consolidated systems across 31 service centers. This was a foundational move to unify complex, multi-location operations under a single, streamlined system.

The focus in 2025 has shifted from conversion to optimization. Management is now focused on 'operationalizing' and 'optimizing newly installed assets' across the network, including the ERP system and new processing equipment. This post-implementation phase is crucial for realizing the expected efficiency gains and cost reductions, which included a target of $60 million in annualized operating expense reduction achieved in 2024. The new ERP system is the backbone that enables the centralized control needed for flex capacity management and network-wide efficiency.

Technological Focus Area	2025 Key Metric / Status	Strategic Impact
E-commerce Platform	Transactional sales increased 12% YoY in Q1 2025.	Grows market share and provides a lower-cost, scalable sales channel.
Capital Expenditures (CapEx)	Expected $50 million in CapEx for 2025.	Funds automation and optimization of newly installed assets.
Warehouse Automation	Operationalizing assets like AGV and automated forklifts.	Improves processing precision and reduces labor dependency.
ERP System	Conversion of 31 service centers completed (Q1 2024); 2025 focus is on optimization.	Streamlines multi-location operations and enables network-wide efficiency.

Ryerson Holding Corporation (RYI) - PESTLE Analysis: Legal factors

Stricter enforcement of US anti-dumping and countervailing duties on imported metals requires rigorous compliance.

The trade landscape for metals service centers like Ryerson Holding Corporation (RYI) has become defintely more complex in 2025, driven by heightened enforcement of US anti-dumping (AD) and countervailing duties (CVD). This means your cost of goods sold is subject to sudden, significant spikes. The most immediate impact came from the reinstatement and increase of Section 232 tariffs on steel and aluminum imports.

The tariff rate on global steel and aluminum imports, which had been at 25% since March 12, 2025, was subsequently doubled to 50% for most countries, effective June 4, 2025. This is a massive cost multiplier on imported inventory. Plus, the Department of Commerce is actively issuing new AD/CVD determinations on specific products, forcing you to vet every supplier's country of origin and specific product classification.

Here's the quick math on the risk: in April 2025, the Commerce Department issued preliminary affirmative AD determinations on Corrosion-Resistant Steel Products (CORE) from ten countries. The dumping rates proposed are not minor, with some Brazilian exporters facing a preliminary rate of 137.76% and certain Canadian exporters facing rates up to 52.08%. This kind of volatility demands a resilient, multi-source supply chain.

Trade Action (2025)	Effective Date	Impact on Imported Metals	Key Rate/Value
Section 232 Tariffs (Steel & Aluminum)	March 12, 2025 (Reinstated)	Additional duty on global imports, eliminating exemptions.	25% ad valorem
Section 232 Tariffs (Increased)	June 4, 2025	Further increase on most steel and aluminum imports.	50% ad valorem
Preliminary AD on CORE (Brazil)	April 4, 2025	High-risk dumping rate for certain exporters.	Up to 137.76%

New supply chain due diligence regulations, particularly regarding conflict minerals and forced labor, increase reporting burden.

The regulatory focus on ethical sourcing has intensified, moving beyond just a corporate social responsibility issue to a mandatory legal reporting requirement. Ryerson Holding Corporation must navigate not only US Securities and Exchange Commission (SEC) rules but also international standards, particularly with its Canadian operations.

The company is already compliant with the SEC's Conflict Minerals Rule (Rule 13p-1), disclosing its efforts to ensure that necessary Conflict Minerals do not originate from the Democratic Republic of Congo or adjoining countries. This process involves retaining a third-party service provider to survey all in-scope suppliers using the Conflict Minerals Reporting Template. What this estimate hides is the ongoing cost of this due diligence, which is substantial for a company with approximately 40,000 customers.

The compliance burden is growing, particularly with forced labor. Ryerson Canada, Inc., a wholly owned subsidiary, is required to file a report under the Canadian Fighting Against Forced Labour and Child Labour in Supply Chains Act for the fiscal year ending December 31, 2024. This requires a risk-based strategy, including:

• Leveraging the industry-standard Slavery and Trafficking Risk Assessment Tool (STRT).
• Engaging dozens of suppliers prioritized by sourcing country and industry risk.
• Incorporating specific human rights and anti-forced labor provisions into supplier terms and conditions.

You must ensure your US-based supply chain due diligence is equally robust to preempt future US legislation, which is a defintely a near-term risk.

Changes to corporate tax codes or depreciation schedules could materially impact capital expenditure decisions.

For a capital-intensive business like a metal service center, 2025 tax changes offer a significant financial opportunity. The passage of the 'One Big Beautiful Bill Act' (H.R. 1) in July 2025 brought critical, retroactive changes to the tax code that directly incentivize investment in machinery and facilities.

The most impactful change is the retroactive extension of 100% bonus depreciation for qualified property placed in service after January 19, 2025. This means Ryerson can immediately expense the full cost of eligible investments, such as new processing machinery, robotics, and facility upgrades, instead of depreciating them over 5 to 39 years. This immediate tax deduction significantly lowers the net cost of capital expenditure (CapEx) and boosts cash flow. Also, the calculation for the business interest expense limitation (Section 163(j)) reverts to the more favorable Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) standard, replacing the more restrictive EBIT standard that was in place since 2022. This change generally increases the amount of interest expense the company can deduct, which is good for any business with significant debt.

Increased scrutiny from the Occupational Safety and Health Administration (OSHA) on industrial safety standards.

The operational environment for metal processing is inherently hazardous, making OSHA compliance a high-stakes legal factor. In 2025, the financial risk of non-compliance increased due to the annual adjustment for inflation in penalty amounts, effective January 15, 2025.

The maximum penalty for a Serious or Other-Than-Serious violation is now $16,550 per violation. More critically, a Willful or Repeated violation-which is common in a multi-facility operation like Ryerson Holding Corporation-carries a maximum fine of $165,514 per violation. This is not just a theoretical risk; in 2025, some companies in related industries have faced fines exceeding $1 million.

Your focus must be on the most-cited standards relevant to a service center:

• Machine Guarding (1910.212): This was among the top 10 most-cited violations in the prior fiscal year, with 1,541 violations. This is a perennial issue in metal fabrication and processing.
• Lockout/Tagout (1910.147): This standard, which prevents unexpected startup of machinery, saw 2,443 violations.
• Powered Industrial Trucks (1910.178): Forklifts and other material handling equipment are everywhere in your facilities, accounting for 2,248 violations.

A single incident involving a repeated violation of a machine guarding standard could easily trigger a penalty in the hundreds of thousands of dollars, so safety compliance is a direct financial imperative.

Ryerson Holding Corporation (RYI) - PESTLE Analysis: Environmental factors

Pressure to reduce Scope 1 and Scope 2 carbon emissions from processing and transportation operations.

The imperative to decarbonize is a core pressure point, even for a metal processor and distributor like Ryerson Holding Corporation, which does not operate a furnace and thus has a lower carbon intensity than primary steel producers. The company established 2021 as its baseline year for emissions tracking, reporting a Scope 1 emissions total of 67,610t CO2e (carbon dioxide equivalent). This figure represents the direct emissions from company-owned or controlled sources, primarily fleet and facility operations.

Ryerson Holding Corporation's relative carbon footprint is estimated to be only about 2% to 3% of a metal producer's on a per-revenue basis, but the absolute reduction of Scope 1 and Scope 2 (indirect emissions from purchased energy) remains a strategic focus. Decarbonization strategies are currently being developed to meet stakeholder expectations, which is a near-term capital and operational planning priority for 2025. You should expect continued investment in energy efficiency and low-carbon logistics solutions to drive these numbers down.

Metric	Value (2021 Baseline)	Significance
Scope 1 Emissions	67,610t CO2e	Direct emissions from operations (e.g., fleet fuel).
Relative Emissions Intensity	2%-3% of a metal producer's (per revenue)	Indicates a lower environmental risk profile compared to upstream steel mills.
Key Action	Developing decarbonization strategies	Focus on energy efficiency and low-carbon logistics for 2025 and beyond.

Growing demand from customers, especially automotive and construction, for certified low-carbon or green steel products.

Customer demand for materials with a traceable, low-carbon footprint is accelerating, particularly in key end-use sectors like automotive and construction. Ryerson Holding Corporation is a critical link in the supply chain, processing and distributing over 2 million tons of metal annually, and must respond to this push. The global market for green steel is projected to grow significantly from 2025, driven by corporate sustainability targets.

To address this, the company launched the Emissions Illuminator App, a first-of-its-kind digital tool that allows customers to estimate the emissions produced by their unique metals supply chain based on location, product, and shipping information. This transparency is defintely a competitive advantage, helping customers like major original equipment manufacturers (OEMs) in commercial ground transportation and industrial equipment meet their own Scope 3 (value chain) reduction goals. The shift is already affecting purchasing decisions, so having certified low-carbon options is becoming a non-negotiable requirement for large contracts.

Compliance with increasingly strict waste disposal and pollution control regulations for metal processing byproducts.

The regulatory landscape for industrial waste is tightening in 2025, particularly in the US. The Resource Conservation and Recovery Act (RCRA) is seeing changes, including a new rule to further encourage electronic manifests for hazardous waste, which takes effect on December 1, 2025. This impacts how Ryerson Holding Corporation manages and tracks byproducts from its value-added processing operations across its network of approximately 107 interconnected metal locations in North America.

Also, new regulations regarding the reporting of Per- and Polyfluoroalkyl Substances (PFAS) under the Toxic Substances Control Act (TSCA) are taking effect on July 11, 2025. These regulations require reporting on PFAS use, production, disposal, and exposure, which is relevant to the manufacturing and construction industries that Ryerson Holding Corporation serves. The company mitigates some of its waste risk through its active participation in the circular economy, having recycled over 70,000 tons of scrap metal in 2022.

• New RCRA e-manifest rule starts December 1, 2025.
• PFAS reporting under TSCA begins July 11, 2025.
• Recycled over 70,000 tons of scrap in 2022, supporting the circular economy.

Risk of physical climate events (e.g., severe weather) disrupting key distribution centers and logistics networks.

The physical risk from climate change-severe weather, flooding, and extreme heat-presents a material threat to Ryerson Holding Corporation's extensive North American distribution network. Disruptions to logistics networks can immediately impact the company's ability to ship materials and meet customer delivery schedules, directly affecting the tons shipped, which was 447,000 tons in the fourth quarter of 2024.

The company is addressing supply chain resilience through a strategy of network optimization and capital expenditure (CapEx) projects. Major CapEx projects are being operationalized at key service centers in locations like Shelbyville, KY, Norcross, GA, Dallas, TX, and Los Angeles, CA. This investment in modernization and automation helps to cure legacy investment deficits and integrate the North American service center network, which ultimately builds in more redundancy and resilience against localized climate events. This is a smart move, because nearshoring and reshoring trends are already being adopted by manufacturers to counteract supply chain vulnerabilities seen during recent disruptions.