A Silent Giant in the Industrial Aluminum SectorReliance Steel & Aluminum: A Silent Giant in the Industrial Aluminum Sector
By Ion Jauregui – Analyst at ActivTrades
Aluminum is at the center of all attention. Reliance Steel & Aluminum Co. (Ticker: RS.US) has established itself as one of the largest metal service centers in North America, with a business model that goes far beyond steel. Despite what its name suggests, aluminum has become a key component of its portfolio, responding to the growing global demand for lightweight and durable materials. The company distributes aluminum in multiple forms—sheets, extrusions, and pipes—serving strategic industries such as aerospace, automotive, transportation, construction, energy, and defense. This positioning has allowed Reliance to benefit from the transition to electric vehicles, innovations in lighter aircraft, and infrastructure modernization, where aluminum is essential.
In a context where aluminum prices have surged over 17% on the London Metal Exchange since April, and the U.S. “Midwest premium” has skyrocketed 177%, surpassing $0.70 per pound, companies like Reliance are directly benefiting. Its distribution capacity and adaptability give it an advantage over competitors focused on a single metal or region. In China, the 45-million-ton production cap in place since 2017 is forcing the country to become a net importer, adding pressure to international markets. Meanwhile, inventories in Shanghai have fallen by half since April, and stocks in Europe and North America are also low, creating bottlenecks across the supply chain. The combination of 50% tariffs imposed by the Trump administration, rising demand, and historically low inventories has created the perfect storm.
Furthermore, the projected deficit for 2026, as highlighted by Bank of America, reinforces the view that diversified metal companies with strong aluminum exposure are well-positioned to capitalize on this trend. With over 300 locations in the U.S. and an international presence, Reliance is a key player in ensuring supply to critical sectors during times of shortage. In Europe, giants like Norsk Hydro (Norway) and ArcelorMittal (Luxembourg) play a fundamental role in aluminum and industrial metals production, though with a more integrated focus on extraction and primary processing. The difference is that Reliance functions as a distribution and service link, bringing the metal to end customers flexibly, making it a complementary model to European producers.
Technical Analysis – Reliance Steel & Aluminum Co. (Ticker: RS.US)
The company’s share price moved from highs of $346 at the end of July to close yesterday at $288.58. Since mid-2023, the most frequent trading range has been between $304.15 and $263.64. The Point of Control (POC) places the middle of the bell curve at the lower end of this range, around $275.69. The bearish crossover reflected since early August appears to be concentrating the price in an indecision zone, keeping the stock near the range midpoint. RSI and MACD indicators signal neutrality. According to the ActivTrades US Market Pulse, the U.S. market is in a neutral/mixed zone, suggesting a balanced market with the company showing stability in its pricing. If the market supports an upward move and breaks the range ceilings, the next targets could be $321.91 and $334.26, potentially establishing a bullish scenario attempting to test new highs. Conversely, if the stock loses value and breaks supports at $272.55 and $263.60, a retest of the year’s lows around $248.03 could occur.
Market Barometer
In short, Reliance Steel & Aluminum consolidates itself as a silent barometer in the industry and the global aluminum chain, combining distribution flexibility with a strong presence in strategic sectors. In an environment marked by tariffs, low inventories, and a projected 2026 deficit, the company stands out as a reliable indicator of market trends and a reference point for anticipating future movements in the metal, linking global price increases with the reality of factories, workshops, and airports that depend on this strategic resource.
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