The Company may use derivatives to partially offset its business exposure to commodity price, foreign currency, and interest rate fluctuations and their related impact on expected future cash flows and certain existing assets and liabilities. However, the Company may choose not to hedge certain exposures for a variety of reasons including, but not limited to, Company policy, accounting considerations, or the prohibitive economic cost or risk of hedging particular exposures. There can be no assurance that the hedges will offset more than a portion of the financial impact resulting from movements in commodity pricing, foreign currency exchange, or interest rates. Interest rate swaps may be entered into to manage interest rate risk associated with the Company’s floating-rate borrowings. We use foreign currency exchange contracts to hedge variability in cash flows in our Canada, Mexico, and China operations when a payment currency is different from our functional currency. From time to time, we may enter into fixed price sales contracts with our customers for certain of our inventory components. We may enter into metal commodity futures and options contracts to reduce volatility in the price of these metals. We may also enter into natural gas and diesel fuel future and option contracts to manage the price risk of forecasted purchases of these energy costs.

The Company currently does not account for its commodity contracts and foreign exchange derivative contracts as hedges but, rather marks them to market with a corresponding offset to current earnings.

The Company regularly reviews the creditworthiness of its derivative counterparties and does not expect to incur a significant loss from the failure of any counterparties to perform under any agreements.

The following table summarizes the location and fair value amount of our derivative instruments reported in our Condensed Consolidated Balance Sheets as of June 30, 2025 and December 31, 2024. As of June 30, 2025 and December 31, 2024, all derivative instruments held by the Company were subject to master netting arrangements with various financial institutions. The Company’s accounting policy is to not offset these positions in its Condensed Consolidated Balance Sheets. The gross derivative assets and liabilities presented in the Condensed Consolidated Balance Sheets offset to a net asset of $3.9 million and zero as of June 30, 2025 and December 31, 2024, respectively.


	Asset Derivatives					Liability Derivatives
	Balance Sheet Location	June 30, 2025		December 31, 2024		Balance Sheet Location	June 30, 2025		December 31, 2024
Derivatives not designated as hedging instruments under ASC 815	(In millions)
Metal commodity contracts	Prepaid expenses and other current assets	$	4.7	$	1.8	Other accrued liabilities	$	0.9	$	2.0
Energy commodity contracts	Prepaid expenses and other current assets		0.2		0.1	Other accrued liabilities		—		—
Foreign currency exchange contracts	Prepaid expenses and other current assets		—		0.1	Other accrued liabilities		0.1		—
Total derivatives		$	4.9	$	2.0		$	1.0	$	2.0

The following table presents the volume of the Company’s activity in derivative instruments as of June 30, 2025 and December 31, 2024:


	Notional Amount
Derivative Instruments	June 30, 2025		December 31, 2024		Unit of Measurement
Hot roll coil swap contracts		17,204		31,658	Tons
Aluminum swap contracts		8,233		15,711	Tons
Nickel swap contracts		389		298	Tons
Copper swap contracts		2,274		1,319	Tons
Natural gas swap contracts		215,080		283,000	Gallons
Diesel fuel swap contracts		1,916,000		1,176,000	Gallons
Foreign currency exchange contracts	3.4 million		1.6 million		U.S. dollars

The following table summarizes the location and amount of gains and losses on derivatives not designated as hedging instruments reported in our Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2025 and 2024:


		Amount of Gain/(Loss) Recognized in Income on Derivatives
Derivatives not designated as hedging instruments under ASC 815	Location of Gain/(Loss) Recognized in Income on Derivatives	Three Months Ended June 30,					Six Months Ended June 30,
		2025			2024		2025			2024

Metal commodity contracts	Cost of materials sold	$	1.0		$	5.3	$	7.1		$	4.4
Energy commodity contracts	Warehousing, delivery, selling, general, and administrative		(0.2	)		—		—			—
Foreign exchange contracts	Other income and (expense), net		—			—		(0.1	)		0.1
Total		$	0.8		$	5.3	$	7.0		$	4.5

The Company has various commodity derivatives to lock in hot roll coil, nickel, aluminum, copper, natural gas, and diesel fuel prices for varying time periods. The fair value of these derivatives is determined based on the spot price each individual contract was purchased at and compared with the one-month daily average actual spot price on the Chicago Mercantile Exchange (hot roll coil, copper, Midwest Premium, natural gas, and diesel fuel) and the London Metals Exchange (nickel and aluminum), respectively, for the commodity on the valuation date. In addition, the Company has numerous foreign exchange contracts to hedge variability in cash flows when a payment currency is different from our functional currency. The Company defines the fair value of foreign exchange contracts as the amount of the difference between the contracted and current market value at the end of the period. The Company estimates the current market value of foreign exchange contracts by obtaining month-end market quotes of foreign exchange rates and forward rates for contracts with similar terms. The Company uses the exchange rates provided by Reuters. Each commodity and foreign exchange contract term varies in the number of months, but in general, contracts are between 1 to 12 months in length. As the fair value of each commodity and foreign exchange contract is determined using inputs other than quoted prices that are directly observable (Level 2 inputs) and the market approach valuation technique, as described in ASC 820, "Fair Value Measurement", these derivative balances are classified as Level 2 within the fair value hierarchy.

The estimated fair value of the Company’s cash and cash equivalents, restricted cash, receivables less provisions, and accounts payable approximate their carrying amounts due to the short-term nature of these financial instruments. The estimated fair value of the Company's long-term debt and the current portions thereof equal the carrying amounts due to the short-term nature of the underlying borrowings on the Ryerson Credit Facility which are typically 30 to 90 days. See the Condensed Consolidated Balance Sheets for the June 30, 2025 and December 31, 2024 values of these assets and liabilities.