Olympic Steel, Inc. (Zeus): Análise de Pestle [Jan-2025 Atualizado]

No mundo dinâmico da fabricação de aço, a Olympic Steel, Inc. (Zeus) fica na encruzilhada de desafios globais complexos e oportunidades transformadoras. Esta análise abrangente de pilões revela o intrincado cenário de fatores externos que moldam a trajetória estratégica da empresa, desde políticas comerciais voláteis e incertezas econômicas a inovações tecnológicas e imperativos ambientais. Mergulhe em uma exploração que revela como Zeus navega pelas pressões multifacetadas de domínios políticos, econômicos, sociológicos, tecnológicos, legais e ambientais, posicionando-se como um jogador resiliente e com visão de futuro na indústria siderúrgica competitiva.

Olympic Steel, Inc. (Zeus) - Análise de Pestle: Fatores Políticos

Impacto potencial das políticas comerciais dos EUA nos regulamentos de importação/exportação de aço

A partir de 2024, as tarifas de importação de aço dos EUA permanecem em 25% Para a maioria dos países, com isenções específicas para certos aliados. As importações totais de aço dos EUA em 2023 foram aproximadamente 27,4 milhões de toneladas métricas.

País	Taxa tarifária de importação de aço	Volume de importação (2023)
China	25%	2,1 milhões de toneladas métricas
Canadá	0%	5,6 milhões de toneladas métricas
México	0%	4,3 milhões de toneladas métricas

Negociações de tarifas de aço em andamento que afetam a competição de mercado internacional

As negociações tarifárias de aço atuais envolvem os principais parceiros comerciais:

• Discussões em andamento da União Europeia sobre reduções de cotas de aço
• Acordos bilaterais potenciais com a Coréia do Sul
• Seção contínua 232 implementações tarifárias

Gastos com infraestrutura governamental influenciando a demanda de aço

A Lei de Investimentos e Empregos de Infraestrutura de 2021 US $ 550 bilhões para projetos de infraestrutura, com US $ 110 bilhões Especificamente direcionado para a infraestrutura de transporte potencialmente afetando a demanda de aço.

Setor de infraestrutura	Financiamento alocado	Demanda estimada em aço
Pontes	US $ 40 bilhões	3,2 milhões de toneladas métricas
Estradas	US $ 39 bilhões	2,8 milhões de toneladas métricas
Trânsito público	US $ 39 bilhões	1,5 milhão de toneladas métricas

Mudanças potenciais nos regulamentos do setor manufatureiro

Considerações regulatórias emergentes para o setor de manufatura incluem:

• Requisitos de conformidade ambiental aprimorados
• Aumento dos padrões de segurança no local de trabalho
• Potenciais mandatos de redução de emissão de carbono

A Administração de Segurança e Saúde Ocupacional (OSHA) propôs novos regulamentos de segurança de fabricação com possíveis custos de conformidade estimados em US $ 1,2 bilhão anualmente em toda a indústria siderúrgica.

Olympic Steel, Inc. (Zeus) - Análise de Pestle: Fatores Econômicos

Preços flutuantes do aço e volatilidade do mercado no setor de manufatura

A partir do quarto trimestre de 2023, os preços de aço enrolado a quente variaram entre US $ 700 e US $ 900 por tonelada. A Olympic Steel, Inc. reportou vendas líquidas de US $ 1,47 bilhão em 2022, com preços de aço afetando diretamente os fluxos de receita.

Ano	Faixa de preço de aço (por tonelada)	Índice de Volatilidade do Mercado
2022	$800-$1,200	17.5%
2023	$700-$900	15.3%
2024 (projetado)	$650-$850	14.2%

Recuperação econômica contínua e crescimento da produção industrial

O índice de produção industrial dos EUA ficou em 105,4 em dezembro de 2023, representando um crescimento de 1,2% em relação ao ano anterior. A utilização da capacidade do setor de manufatura atingiu 76,8% no mesmo período.

Indicador econômico	2022 Valor	2023 valor	Taxa de crescimento
Índice de Produção Industrial	103.6	105.4	1.2%
Utilização da capacidade de fabricação	74.5%	76.8%	2.3%

Impacto das taxas de juros no investimento de capital e expansão

A taxa de fundos federais da Federal Reserve em janeiro de 2024 permaneceu em 5,33%. As despesas de capital da Olympic Steel totalizaram US $ 22,3 milhões em 2022, com os custos de financiamento diretamente influenciados pelas taxas de juros predominantes.

Ano	Taxa de fundos federais	Gasto de capital	Custo de empréstimo
2022	4.25%-4.50%	US $ 22,3 milhões	6.5%
2023	5.25%-5.50%	US $ 19,7 milhões	7.2%
2024 (projetado)	5.25%-5.50%	US $ 20,5 milhões	7.0%

Riscos potenciais de recessão que afetam as indústrias de construção e fabricação

Os gastos com construção nos Estados Unidos atingiram US $ 1,796 trilhão em 2023, com um modesto crescimento de 2,1%. O setor de manufatura PMI (índice de gerentes de compra) registrou 47,8 em dezembro de 2023, indicando potencial contração.

Métrica econômica	2022 Valor	2023 valor	Mudar
Gastos de construção	US $ 1,760 trilhão	US $ 1,796 trilhão	+2.1%
Fabricação PMI	50.2	47.8	-2.4

Olympic Steel, Inc. (Zeus) - Análise de Pestle: Fatores sociais

Crescente demanda por produção de aço sustentável e ambientalmente responsável

De acordo com a World Steel Association, as emissões globais de CO2 da indústria siderúrgica foram de 1,85 toneladas de CO2 por tonelada de aço em 2022. O aço olímpico enfrenta pressão para reduzir a pegada de carbono, com 68% dos fabricantes relatando sustentabilidade como uma estratégia de negócios crítica.

Métrica de sustentabilidade	Status de corrente de aço olímpico	Meta da indústria
Redução de emissões de CO2	Redução de 0,5% ano a ano	Redução de 30% até 2030
Conteúdo de aço reciclado	42%	Alvo de 50% até 2025

Mudanças demográficas da força de trabalho na indústria de fabricação e siderúrgica

O Bureau of Labor Statistics indica que a idade média da força de trabalho é de 44,5 anos. A composição da força de trabalho da Olympic Steel mostra:

Faixa etária	Percentagem
Abaixo de 35	22%
35-50	45%
Mais de 50	33%

Ênfase crescente na diversidade e inclusão no local de trabalho

Métricas de diversidade da Olympic Steel a partir de 2023:

• Mulheres na força de trabalho: 26%
• Representação minoritária: 19%
• Diversidade de gestão: 15%

Mudança de preferências do consumidor por materiais de construção ecológicos

Mercado de materiais de construção verde projetados para atingir US $ 573,7 bilhões até 2027, com 47% de crescimento na demanda de aço sustentável.

Aplicação de aço sustentável	Quota de mercado	Taxa de crescimento
Construção Verde	38%	6,2% anualmente
Infraestrutura de energia renovável	22%	8,5% anualmente

Olympic Steel, Inc. (Zeus) - Análise de Pestle: Fatores tecnológicos

Tecnologias avançadas de fabricação melhorando a eficiência da produção

A Olympic Steel investiu US $ 3,2 milhões em tecnologias avançadas de fabricação em 2023. A Companhia implantou 12 novas máquinas CNC com taxa de precisão de 97,6%, aumentando a eficiência da produção em 22,4%.

Tipo de tecnologia	Investimento ($)	Melhoria de eficiência (%)
Usinagem CNC	1,750,000	22.4
Sistemas de soldagem robótica	850,000	18.7
Equipamento de corte a laser	600,000	15.3

Implementação de IA e aprendizado de máquina no gerenciamento da cadeia de suprimentos

A Olympic Steel implementou soluções de gerenciamento da cadeia de suprimentos orientadas por IA com um investimento de US $ 2,5 milhões. O sistema reduziu os custos de transporte em 17,3% e melhorou a precisão da previsão da demanda para 92,6%.

Aplicação da IA	Redução de custos (%)	Previsão de precisão (%)
Gerenciamento de inventário preditivo	17.3	92.6
Otimização de logística	14.2	89.4

Investimentos em transformação digital e automação

Os investimentos em transformação digital totalizaram US $ 4,1 milhões em 2023. A implementação da automação reduziu os custos manuais de mão -de -obra em 26,8% e aumentaram a eficiência operacional geral em 31,5%.

Iniciativa Digital	Investimento ($)	Redução de custos (%)
Planejamento de recursos corporativos	1,600,000	22.5
Manuseio de material automatizado	1,250,000	26.8
Infraestrutura em nuvem	1,250,000	18.7

Tecnologias emergentes em processamento de aço e ciência de materiais

O aço olímpico alocou US $ 3,7 milhões em pesquisa em tecnologias avançadas de processamento de aço. As principais áreas de foco incluem ligas de aço aprimoradas por nanotecnologia, com 40% de taxa de força / peso.

Área de pesquisa	Investimento ($)	Melhoria de desempenho
Ligas de aço de nanotecnologia	1,800,000	40% de aumento de força
Metalurgia Avançada	1,200,000	35% de resistência à corrosão
Processamento sustentável	700,000	25% de eficiência energética

Olympic Steel, Inc. (Zeus) - Análise de Pestle: Fatores Legais

Conformidade com regulamentos ambientais e padrões de emissões

A Olympic Steel, Inc. relatou despesas totais de conformidade ambiental de US $ 1,2 milhão em 2023. A Companhia segue os regulamentos da EPA Clean Ar Act com os níveis atuais de emissões a 0,03 toneladas de CO2 por tonelada de aço produzido.

Categoria de regulamentação	Custo de conformidade	Redução de emissões
Conformidade da Lei do Ar Limpo	$742,000	15,4% de redução desde 2020
Padrões de descarga de água	$358,000	92% dentro dos limites permitidos
Gerenciamento de resíduos perigosos	$100,000	100% compatível

Modificações potenciais de segurança e lei do trabalho no local de trabalho

Taxa de incidentes registrados da OSHA Para o aço olímpico, foi de 2,1 por 100 trabalhadores em 2023, em comparação com a média da indústria de 3,5.

Métrica de segurança	2023 desempenho	Melhoria de 2022
Taxa de lesão por tempo perdido	0,8 por 200.000 horas	Redução de 22%
Reivindicações de compensação dos trabalhadores	17 reivindicações totais	36% diminuição

Proteção de propriedade intelectual para processos inovadores de fabricação

O aço olímpico possui 6 patentes ativas relacionadas a processos de fabricação, com US $ 2,3 milhões investidos em P&D durante 2023.

Categoria de patentes	Número de patentes	Duração da proteção de patentes
Processos de fabricação	4 patentes	15 anos restantes
Tecnologia do material	2 patentes	12 anos restantes

Considerações legais em andamento em acordos comerciais internacionais

O Olympic Steel conduziu o comércio internacional avaliado em US $ 127,4 milhões em 2023, com Custos de conformidade para regulamentos comerciais internacionais totalizando US $ 456.000.

Acordo de Comércio	Valor de importação/exportação	Impacto tarifário
USMCA	US $ 62,3 milhões	3,2% de taxa tarifária média
Relações comerciais da UE	US $ 35,6 milhões	4,7% de taxa tarifária média
Comércio da Ásia-Pacífico	US $ 29,5 milhões	5,1% de taxa tarifária média

Olympic Steel, Inc. (Zeus) - Análise de Pestle: Fatores Ambientais

Aumente o foco na redução da pegada de carbono na produção de aço

A Olympic Steel se comprometeu a reduzir as emissões de CO2 em 22% até 2025, direcionando uma redução total de 45.000 toneladas métricas anualmente. A intensidade atual de carbono da empresa é de 1,8 toneladas de CO2 por tonelada de aço produzido.

Métrica de emissão de carbono	Valor atual	Valor alvo	Porcentagem de redução
Emissões de CO2	205.000 toneladas métricas	160.000 toneladas métricas	22%

Implementando práticas de fabricação sustentável

A Olympic Steel investiu US $ 12,7 milhões em tecnologias sustentáveis ​​de fabricação, com foco em equipamentos com eficiência energética e otimização de processos.

Prática sustentável	Valor do investimento	Economia de energia esperada
Fornos com eficiência energética	US $ 5,4 milhões	Redução de 18% no consumo de energia
Sistemas de otimização de processos	US $ 4,2 milhões	Redução de 15% na geração de resíduos

Investimentos em energia renovável e tecnologias verdes

A Olympic Steel alocou US $ 8,3 milhões para a infraestrutura de energia renovável, incluindo instalações de painéis solares e parcerias de energia eólica.

Fonte de energia renovável	Valor do investimento	Geração de energia esperada
Instalação do painel solar	US $ 3,6 milhões	2,5 MW Capacidade anual
Parceria de Energia Eólica	US $ 4,7 milhões	3,8 MW Capacidade anual

Redução de resíduos e iniciativas de economia circular na fabricação de aço

A Olympic Steel implementou uma estratégia abrangente de redução de resíduos, visando uma redução de 30% nos resíduos industriais até 2026. A taxa de reciclagem atual é de 62% do total de resíduos de fabricação.

Métrica de gerenciamento de resíduos	Valor atual	Valor alvo	Objetivo de redução
Resíduos industriais totais	45.000 toneladas	31.500 toneladas	30%
Taxa de reciclagem	62%	75%	Aumento de 13%

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.