Steel Mills
SDI Expects Lower Shipments and Pricing in Q3
Written by Sandy Williams
September 19, 2019
Steel Dynamics is expecting earnings to drop in the third quarter due to lower profits from its steel operations. Lower scrap prices were not enough to offset lower shipments and declining steel pricing. The steelmaker expects earnings in the range of $0.66 to $0.70 per diluted share compared to $0.87 per share in the second quarter and $1.69 per diluted share in Q3 2018.
Profitability at SDI’s metals recycling platform is also expected to decline due to lower ferrous and nonferrous scrap prices.
Steel fabrication is a bright spot for the company with higher shipments and a steady metal spread. SDI notes strong steel fabrication backlogs and customer optimism regarding nonresidential construction projects.
“Underlying domestic steel demand remains principally intact for the primary steel consuming sectors, with particular strength in construction,” said SDI.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
USS/Nippon deal: Who will have the happiest holidays?
Will Santa bring gifts for the leadership, employees, and shareholders of U.S. Steel and Nippon Steel, and lumps of coal for USW leadership and politicians opposed to the deal?
‘Orderly liquidation’ of AHMSA assets begins
A trustee has formally taken over AHMSA and begun the liquidation process of the bankrupt Mexican steelmaker.
Nippon buying stake in Canadian iron ore project
Nippon Steel and a Japanese trading company have entered an agreement to buy a 49% interest in a Champion Iron ore project in Canada.
USS anticipates Q4 loss on weak demand, BR2 start-up
Amid a challenging pricing and demand environment, and with the ongoing ramp-up of the Big River 2 mill, USS is anticipating a loss for the fourth quarter.
Nucor blames steel mills segment for depressed Q4 guidance
Nucor cited decreased volumes and prices in it steel mills segment as the key driver of its lower guidance for the fourth quarter.