Steel Mills
SDI Cautiously Optimistic on Nonresidential Construction
Written by Sandy Williams
September 19, 2013
Steel Dynamics offered guidance on Tuesday saying it anticipates a better third quarter as compared to the second quarter due to increase in shipments and average metal spread (spread being the difference between steel costs and selling prices). In the sheet steel segment higher volumes and better spread increased profits, while in the long products division higher volume offset metal spread decline from decreased product pricing.
Automotive and manufacturing are strong markets for the company. Improvement of the residential construction market has increased demand for painted and Galvalume sheet products. SDI remains cautiously optimistic on nonresidential construction as orders for construction related products pick up, including structural and fabricated steel products.
Metals recycling shipments were higher in the third quarter but profits are expected to be offset by lower ferrous margins. Losses from the Minnesota Operations due to installation of new equipment in April will continue to be felt in the third quarter. Production rates at the operations are continuing to improve.
The company will pay shareholders a quarterly cash dividend of $0.11/share as of September 30, 2013.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
AISI: Raw steel production eases to 5-week low
Domestic raw steel mill production slipped to a five-week low last week, according to the latest figures released by the American Iron and Steel Institute (AISI). Weekly production is now at the third-lowest level recorded this year.
Nucor maintains HR price at $750/ton
Nucor’s weekly consumer spot price (CSP) for hot-rolled (HR) coil was unchanged week on week (w/w) at $750 per short ton (st) on Monday, Nov. 18.
Mexican court orders sale of officially bankrupt AHMSA
After failing to reach agreements with its creditors, Altos Hornos de México (AHMSA) has been formally declared bankrupt by a Mexican bankruptcy court.
AISI: Raw steel production edges back up
Domestic raw steel production recovered last week, after slipping the week prior, according to the latest American Iron and Steel Institute (AISI) data. Weekly production remains at some of the lowest levels recorded this year.
Cliffs closes its 2024 HR spot book
Cleveland-Cliffs announced the closing of its December order book for hot-rolled coil spot purchases, though it said contract bookings remain available.