United States – Profitability from steel operations in this year’s second quarter is expected to be ‘almost double’ what it was in the opening three months of the year, according to leading US steel producer and metals recycler Steel Dynamics, Inc. (SDI).
The company’s metals recycling operations are also likely to achieve higher profits based on a ‘slight’ increase in shipments. ‘Domestic steel mill production utilisation has improved and metal spread expansion is anticipated based on higher average ferrous scrap selling values during the quarter,’ it notes in its latest earnings guidance.
For all of the company’s steel operations, average quarterly realised steel product pricing is expected to increase ‘approximately 10%’ – thereby ‘more than offsetting additional costs derived from higher-priced ferrous scrap’.
Demand from the heavy equipment, agricultural and energy sectors remains ‘challenged’ while automotive remains strong and the construction market continues to improve, according to SDI.
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