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 seeks clarity on USS plans for Granite City Works
The United Steelworkers union has asked U.S. Steel to elaborate on its Granite City Works plans following reports that the steelmaker is ending processing at the facility.
Nucor maintains plate prices, opens October order book
Nucor aims to keep plate prices flat for a seventh straight month with the opening of its October order book.
ArcelorMittal Mexico to import from sister mills as it works to resume DRI production
ArcelorMittal has partially restarted operations at its direct reduction plant in Lazaro Cardenas, Michoacan. An explosion on Aug. 18 rocked the massive steelworks on Mexico’s Pacific coast, impacting production of direct-reduced iron (DRI).
Fall maintenance outages are coming in hot
Labor Day has passed, the sun is starting to set a little earlier each day, and cooler weather has begun to find its way down to many of us across North America. And you know what that means for the steel industry… Fall maintenance outages!
AISI: Domestic steel production ticks up
US raw steel production ticked up in the week ending on Sept. 6 after a decrease the week before, according to the most recent data from the American Iron and Steel Institute (AISI).