SDI Posts Record Q1, Results Exceed Expectations

All told, SDI posted record net income of $1.10 billion in the first quarter of 2022, more than double net income of $430.5 million in the year-ago quarter, on revenue that rose 57% to $5.57 billion in the same comparison.

Average steel selling prices were $1,561 per ton ($77.55 per cwt) in the first quarter 2022, down roughly 6% from $1,662 per ton in the prior quarter, but up 50% from $1,041 per ton from the same year-ago quarter.

Steel mill production rose to 2.51 million tons in the first quarter of 2022 from 2.48 million tons in the first quarter of 2021. Shipments totaled 2.89 million tons in the first quarter of this year, up from 2.82 million tons in Q1 of last year.

“We remain confident that market conditions are in place for domestic steel consumption to continue to be strong this year and into 2023. Order entry activity continues to be robust across all of our businesses,” SDI President and CEO Mark Millett said in commentary released with fourth-quarter earnings results after the close of markets on Wednesday, April 20.

Millett said steel prices would remain supported by “strong demand, balanced customer inventory levels, and elevated raw material costs”, adding that the company remains in a position of strength as it continues to ramp up operations at its new flat-rolled steel mill in Sinton, Texas.

Steel-fabrication income was $466.9 million in Q1, more than fifty-fold above the same year-ago quarter, and nearly twice as much sequentially.

“The non-residential construction sector remains strong, resulting in a record order backlog with record forward-pricing for the company’s steel fabrication platform. The company anticipates this momentum to continue through 2022 based on these dynamics,” SDI said.

By David Schollaert, David@SteelMarketUpdate.com