What Olympic Steel, Inc. told the SEC could break it.

As a metals service center, Olympic Steel's net sales, inventory valuation and profitability are directly tied to volatile metals prices: carbon flat-rolled index pricing dropped 40.3% between December 2023 and July 2024, and average stainless surcharges fell 24.2% in 2024, causing inventory devaluation and margin pressure; metals-price swings (driven by demand, imports, tariffs, producer lead times and FX) are largely outside its control.

“Metals index pricing for our carbon flat products segment decreased 40.3% between December 2023 and July 2024, with index prices remaining within a $40 per ton range during the second half of 2024.”

Olympic Steel funds working capital with variable-rate revolving debt and is exposed to interest-rate risk: it locked 3.82% on only $75 million via a two-year swap expiring August 15, 2026, and a hypothetical 100% increase in rates (with debt unchanged from year-end 2024) would add roughly $2.0 million of annual interest expense, so rising rates or swap expiry would increase financing costs.

“two -year interest rate swap that locked the interest rate at 3.82% on $75 million of our revolving debt. The interest rate swap exp ires on August 15, 2026.”

Olympic Steel sources a meaningful share of its raw material from a few large mills — its three largest suppliers provided approximately 38% of total steel tonnage requirements in 2024 (40% in 2023) — and although it states it is not dependent on any single supplier, industry supplier consolidation and reduced mill production increase the risk of supply disruption from scheduled and unscheduled supplier outages, affecting availability and cost.

“The Company purchased approximately 38 %, 40 % and 39 % of its total steel tonnage requirements from its three largest suppliers in 2024 , 2023 and 2022 , respectively.”

Olympic Steel's availability and cost of metals are materially affected by the levels of imported steel in the U.S., tariffs and duties on imported/exported steel, broader U.S. trade policy and its impact on domestic manufacturing, and by economic sanctions and global conflicts that can disrupt global metals supply and pricing — all of which can swing the company's raw-material costs and demand.

“the levels of imported steel in the United States, imposed tariffs and duties on imported and exported steel or other products, U.S. trade policy and its impact on the U.S. manufacturing industry”