Steel Mills
SDI to Close Book on '21 with Record Quarterly Profits
Written by Michael Cowden
December 16, 2021
Steel Dynamics Inc. (SDI) has joined competitor Nucor in predicting another quarterly earnings record for the last quarter of 2021.
The Fort Wayne, Ind.-based steelmaker predicted fourth-quarter earnings in the range of $5.46 to $5.50 per diluted share, according to guidance released on Thursday, Dec. 16.
That’s up from $4.85 per diluted share in the third quarter, the prior record, and up from $0.89 per diluted share in the fourth quarter of 2020.
SDI said its steel mills, like the company overall, would see a record performance in the fourth quarter thanks to solid demand and wider spreads between raw material costs and steel selling prices.
Those factors should more than offset a decline in shipments, which the company said typically tail off toward the end of the year. “Domestic steel demand remains strong, with the automotive, construction, and industrial sectors continuing to lead the momentum,” SDI said.
On the scrap side, SDI expects results in the fourth quarter to be similar to those in the third despite slightly lower prices and a decline in shipments. “Many domestic steel mills had planned maintenance outages throughout the fourth quarter of 2021, which lowered ferrous scrap demand,” the company noted.
Ferrous scrap prices for December settled mostly sideways across the U.S. not only because of outages but also on weaker export demand and as mills sought to reduce year-end inventories.
SDI also forecast a strong showing from its downstream fabrication operations on firm demand from the construction sector. “The nonresidential construction sector remains strong as evidenced by robust order activity, resulting in another record order backlog and record forward pricing for the company’s steel fabrication platform,” the company said.
By Michael Cowden, Michael@SteelMarketUpdate.com
Michael Cowden
Read more from Michael CowdenLatest in Steel Mills
USW says opposing USS/Nippon deal is First Amendment right, seeks lawsuit dismissal
The union says the suit is "a frivolous and unsubstantiated attack on our union simply for exercising our First Amendment rights."
AISI: Weekly raw steel output ticks higher
The volume of raw steel produced by US mills slightly increased last week, according to American Iron and Steel Institute (AISI) data. Last week’s production rate represents the second-highest level recorded this year.
Opening briefs filed in Nippon/USS lawsuit vs. US government
Together, Nippon Steel, Nippon Steel North America, and U.S. Steel announced the filing of their opening brief in their litigation to invalidate the government’s decision to block their announced merger. The brief lays out “how President Biden made a predetermined decision for political reasons, not national security, causing CFIUS to engage in a sham review […]
Cliffs blames muted auto demand for steep losses in 2024
Muted demand from the auto industry took a particular toll later in the year.
U.S. Steel losses widen, better times seen as BR2 ramp-up continues
U.S. Steel’s losses widened in the fourth quarter on lower steel prices, weaker demand, and startup costs relating to the expansion of its Big River Steel EAF sheet mill in Arkansas. But the Pittsburgh-based steelmaker said it expected results to improve in 2025 as Big River 2 – the project to double capacity at the Osceola, Ark., mill - gains steam.