Weekly Material Matters: Sell in May on Full Display

Research evidence excerpt

Weekly Material Matters: Sell in May on Full Display

Equity Research

Industry Update — May 18, 2026

Materials Specialty Metals

Building Products Steel

Construction Materials

Mining

Weekly Material Matters: Sell in May on Full

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Our Call Timna Tanners

• We'll probe steel buyers on demand, inventories, and import appetite EquityTimna.Tanners@wellsfargo.comAnalyst | Wells Fargo Securities,| 212-214-5437LLC

• Cement price hikes in full focus for EXP's EPS after March imports were hot, but April Matt Dushkin, CPA

PPI data recovered Associate Equity Analyst | Wells Fargo Securities, LLC

Matt.B.Dushkin@wellsfargo.com | 713-320-7199

• An expert said favorable ali-scrap spreads have legs, supporting CSTM/STLD

Exhibit 1 - Upcoming sector reporting

The week ahead - State of Steel Chicago edition, EXP March qtr-end results EBITDA ests ($M)

• We'll get the latest mkt pulse from steel gurus in Chicago at our State of Steel lunch. FQ426E FQ127E

Ticker Wells Fargo Consensus Wells Fargo Consensus

• EXP pre-signaled weak wallboard pricing into its March qtr-end EPS on Tues, while EXP $126 $124 $207 $195

April cement price hikes will be in focus after CEMEX deferred increases.

Source: FactSet, Wells Fargo Securities, LLC

• April’s Architectural Billings Index could mark an inflection for non-res spend 9–12 estimates

months out, after 29 of 31 months in contraction and mixed recent non-res leading EXP fiscal year ends in March; Green = Wells

indicators. Fargo above consensus, Red = Wells Fargo below

consensus

The week that was - Gas tax holiday, aluminum expert lunch Exhibit 2 - U.S. cement imports (Kt)

• Gas tax holidays at a minimum were bad optics for road construction, and at worst a 3,000

threat to public infrastructure demand. 2,500

2,000