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Norfolk Iron & Metal to Acquire O’Neal Flat Rolled Metals from O’Neal Industries

BIRMINGHAM, AL and NORFOLK, NE, November 15, 2018 — Norfolk Iron & Metal Co. (Norfolk Iron), a full-line steel service center, and O’Neal Industries Inc. (ONI), the largest family owned group of metals service centers in the United States, today jointly announced that they have entered into a definitive agreement in which Norfolk Iron will acquire O’Neal Flat Rolled Metals, LLC, a wholly-owned subsidiary of ONI.

The closing is expected to be on or before December 31, 2018.

Headwall Partners LLC and XMS Capital Partners, LLC are serving as financial advisors to O’Neal Industries.

About O’Neal Flat Rolled Metals

O’Neal Flat Rolled Metals (OFR Metals), an O’Neal Industries affiliate company, is a leading processor and distributor of non-ferrous and carbon flat rolled metal products. Its eight locations house over 650,000 square feet of processing and warehousing capabilities, offering customers sheet and coil materials including stainless, aluminum, hot rolled, cold rolled and galvanized. OFR Metals also offers painted, polished and coated material to suit diverse customer needs. For more information, visit www.ofrmetals.com.

About Norfolk Iron & Metal

Norfolk Iron and Metal, founded in 1908, is a family owned and operated metals service center based in Norfolk, Nebraska. Its five locations offer customers sheet, plate, long products and tubing as well as advanced value-added services with a growing array of processing equipment. For more information, visit www.norfolkiron.com.

About O’Neal Industries

O’Neal Industries (ONI) is the largest family owned group of metals service centers in the United States. Composed of six leading brands and generating sales of approximately $2.6 billion in 2018, ONI is based in Birmingham, Alabama, and has more than 80 specialized facilities throughout North America, Europe and Asia. For more information, visit www.onealind.com.

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November 2018 Market Insight

Economic Indicators

The U.S. economy added 250,000 jobs in October while the unemployment rate was unchanged at a near 50-year low of 3.7%. Wages and salaries jumped by 3.1%, the highest level in 10 years.

September’s Architecture Billings Index score was 51.1. The pace of growth slowed a bit from August. However, any score above 50 indicates an increase in billings.

The October Purchasing Managers Index registered 57.7%, a decrease of 2.1 percentage points from the September reading of 59.8%. The New Orders Index registered 57.4%, a decrease of 4.4 percentage points from the previous month. The Production Index registered 59.9%, a 4.0 percentage point decrease compared to the September reading.

Imports

The American Iron and Steel Institute reported that the U.S. imported 2.2 million tons of steel, including 1.9 million tons of finished steel, in September. Overall, steel imports for the month were down 25.9% and finished steel imports decreased 8.6% from August.

Trade

The Trump administration remains committed to continued talks with the Canadian and Mexican governments regarding its Section 232 tariffs on steel and aluminum. U.S. and European Union officials met in Washington, D.C. last week to discuss regulatory issues that eventually could be part of a transatlantic trade deal. Talks with China, however, are still off the table.

The Trump administration officially notified Congress that it will start trade negotiations with Japan, the European Union and the U.K. as soon as three months from October 16. The notification is a procedural step under U.S. trade law that is required 90 days before the U.S. enters into negotiations with other countries. The White House cannot engage in official talks before the three-month window is over and needs to consult with Congress during that period to ensure it’s fulfilling the objectives laid out in the law.

Canada is applying quotas and a 25% tariff on steel imports from China and other countries to avoid becoming a dumping ground for steel in the face of metal levies imposed by U.S. President Donald Trump. Prime Minister Justin Trudeau’s government faces continuing trade tensions with the U.S., which hit Canada, the European Union and other nations with tariffs of 25% on steel and 10% on aluminum this summer.

For more information, contact your local sales representative or view the November 2018 Insight Guide below.

OFR Insight November 2018