Commercial Metals Adding New Product to Lineup
In a statement, CMC said it will be the first and only company in the U.S. making the product, which will be offered in No. 3 to No. 6 bar.
Spools will be sold in weights ranging from 1.5 to 4.8 tons, the company said.
"Spooled rebar has many advantages over traditional loose-wound coiled rebar that give fabricators a competitive advantage. Traditional coiled rebar's cooling process inherently causes twisting in the bar. Spooled rebar has a no-twist design, which alleviates the challenges associated with fabricating loose-wound coiled rebar,” said CMC executive vice president Tracy Porter.
Production will be housed at CMC’s new micro-mill in Durant, Okla. The mill is under construction and is expected to open this fall.
In other matters, CMC reported that its first-quarter earnings dropped nearly 75 percent on account of several after-tax charges and tighter margins at its steel mills.
On the quarter, which ended 30 November 2016, sales stood at nearly US$1.1 billion. In the same quarter last year, CMC posted a net profit of US$25.1 million on sales of US$1.2 billion.
Although combined shipments at its domestic and overseas mills rose about 3.6 percent to 951,000 tons, average selling prices declined.
"We experienced margin compression in some of our market segments in the early part of our first quarter; however, rising raw material costs, low customer inventory levels and an increase in bidding activity in November suggest more optimistic outcomes for the balance of the year, allowing for the regular seasonal slowdown in the construction markets we experience in the second quarter,” said CMC chairman and chief executive Joe Alvarado said.
He added that the company is optimistic that orders will arise this fiscal year from new infrastructure investments under the Fixing America's Surface Transportation Act.