United States – Operating income from the metals recycling platform of major US steel producer Steel Dynamics, Inc. (SDI) ‘more than doubled’ in the first quarter of this year ‘as domestic steel mill utilisation increased, strengthening both ferrous scrap shipments and metal spread’, confirms the company’s president and ceo Mark D. Millett.
Recycling operation incomes amounted to US$ 21 million, as compared to US$ 10 million in the fourth quarter of 2016 (excluding a non-cash goodwill impairment charge of US$ 5.5 million).
The company’s average steel product price increased by US$ 63 to US$ 743 per ton, thus outstripping the US$ 44 per ton upturn in the average ferrous scrap cost per ton melted to US$ 264.
Overall, SDI has reported a net income of US$ 201 million for the first quarter on net sales of US$ 2.4 billion; these figures compare to, respectively, US$ 63 million and US$ 1.7 billion in the opening three months of last year.
‘The increase in our earnings was principally driven by our flat roll operations, as demand was strong and customer inventory levels continued to be positioned at historically low levels,’ Millett states.
‘We also experienced increased shipments from our long product steel divisions. Steel demand from the automotive sector remained steady and construction continued to improve.’
The company’s capacity utilisation soared to 95% in this year’s first quarter from 81% in the fourth quarter of 2016.