Skip to main content

SDI anticipates scrap shipments decline for third quarter

Global – Steel Dynamics, Inc. (SDI) is expecting profitability in its metals recycling platform to be lower for the third quarter of this year when compared to the previous three months.

The company, which is one of the USA’s largest steel producers and metals recyclers, says in its latest earnings guidance statement: ‘Both ferrous and non-ferrous shipments are expected to decline, and ferrous metal spread contraction is also expected as market prices have declined in the second half of the third quarter.’

In contrast, the profitability of SDI’s steel operations is expected to improve when compared to the second quarter based on ‘meaningful’ metal spread expansion. ‘Average quarterly realized steel product pricing is expected to increase more than additional costs derived from higher-priced ferrous scrap utilised in the quarter,’ the statement notes.

‘However, lower steel shipments across the platform are expected to offset some of the positive margin impact.’ In terms of steel product sales, demand from the heavy equipment, agricultural and energy sectors continues to be ‘challenged’ whereas the automotive sector ‘remains strong’ and the construction market is experiencing ‘gradual improvement’, according to SDI.

Don't hesitate to contact us to share your input and ideas. Subscribe to the magazine or (free) newsletter.

You might find this interesting too

Cirba plugs into Toyota’s closed-loop goals
Welsh recycling rate rises again
More jobs and better recycling rates down under?

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Subscribe now and get a full year for just €169 (normal rate is €225) Subscribe