Company: ZEUS
Filing Date: 2025-10-29
Form Type: 425
Source: 0001193125-25-256374
Chunk: 5

Company: OLYMPIC STEEL INC
Filing Date: 2025-10-29
Form: 425
Chunk 5
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 things with you, because I know synergies are really at the root and core of where we can derive multiples of
value. So if you look at Ryerson and you look at what’s happened since September of 2022, just looking at Ryerson for now, 25% of our mix is in stainless. Okay. So when we look at Q3 revenue, about 25% revenue in stainless, 25% revenue in
aluminum and 50% revenue in carbon. What’s important to realize is we are underweighted the market in carbon. When we look at MSCI numbers, the industry is 67% carbon. It’s 33% non-ferrous roughly.
So when you look at the industry and you look at Ryerson being underweighted carbon, but overweighted stainless and aluminum, just look at stainless. I mean, stainless was a wonderful gift horse in 2021 and 2022, and I don’t want to punch a
gift horse in the mouth, but in 2023 and 2024 and even in 2025, think about what happened to the stainless market.

MSCI shipments in
stainless are off 22%. Nickel prices are down by more than 50%. So we endure that going through a very large investment cycle to modernize our company, improve our company. But we take brutal compression and shipment declines over that three-year
period. And the story in aluminum from a shipment’s perspective, even though price there’s been a lot of volatility in aluminum price. And even though it’s downward gradient has not been as extreme shipments in the MSCI for
aluminum are down more than 20% since September of 2022. But carbon, carbon prices have been about on average, even though there’s been a lot of modulation in the price.

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In general, in September of 2022, carbon price were $850 a ton, and that’s kind of
where they are today in that neighborhood of $850 a ton. But what’s even more provocative in this example of a synergy is that carbon shipments in the industry only fell by 5% in that period. So if you were overweighted carbon, in general, you
did better in the industry than if you were overweight in non-ferrous. So when you think about the combination of Olympic and Ryerson, Olympic has more carbon exposure, more carbon exposure in tube, more
carbon exposure in plate. And so, that’s a natural synergy when