Global – ‘Ongoing pressure from steel imports remains high, negatively impacting steel pricing and domestic steel production, resulting in industry utilisation not fully reflecting the actual strength in US steel consumption,’ insists Steel Dynamics, Inc.’s ceo Mark Millett in reviewing the company’s third quarter performance. As a result, the three-month period proved to be ‘challenging’ or SDI’s steel and metals recycling operations.
Customer steel inventories ‘remain at elevated levels’ and, when combined with further declining scrap prices, have resulted in ‘hesitant ordering’, he continues. ‘As scrap prices stabilise at these lower levels and steel inventories moderate to more normalised quantities into 2016, we believe domestic steel production should improve.’
SDI’s metals recycling activities recorded a third quarter operating income of US$ 463 000 compared to a second quarter figure of US$ 12 million. ‘Sequential quarterly ferrous pricing was down 3% and procurement costs rose, resulting in a 14% reduction in metal margin,’ the company points out. ‘Additionally, non-ferrous market indices fell over 10% in third quarter 2015, resulting in a 20% reduction in metal margin.’