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Steel Dynamics: optimistic future

Steel Dynamics says the market conditions for its sector suggest domestic steel consumption will be ‘solid’ and increasing in the coming years.

The message was included as the company Q2 report revealed an operating income of US$ 706 million (EUR 638 million) with shipments remaining steady at around three million tonnes. Mark D Millett, chairman and ceo, says the operating income was more than double the first quarter sequential results ‘due to significant metal spread expansion across the platform as realised selling values more than offset moderately higher scrap costs’.

‘Steel order activity remains solid from the automotive, construction, industrial, and energy sectors,’ he went on. ‘Recent positive data from the steel service centre sector points to continued low customer inventory levels, which we believe has abated destocking and will support steel pricing.’

Competitive industry

Millett adds: ‘Order entry activity continues to be strong across all of our businesses. We believe North American steel consumption will increase in the coming years, and that demand for lower-carbon emission, US produced steel products coupled with lower imports will support steel pricing.

‘The continued onshoring of manufacturing businesses, combined with the expectation of significant fixed asset investment to be derived from public funding related to the US Infrastructure, Inflation Reduction Act, and Department of Energy programmes, will competitively position the domestic steel industry. We believe this will benefit all of our operating platforms, especially our steel and steel fabrication businesses.’

Steel Dynamics is ‘quickly progressing’ its aluminium flat rolled products mill in Columbus, Mississippi as a ‘meaningful growth opportunity’. ‘We are pleased to further diversify our end markets with plans to supply aluminium flat rolled products with high recycled content to the countercyclical sustainable beverage can industry, in addition to the automotive and industrial sectors,’ says Millett.

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