Steel Mills
Steel Dynamics CEO Says Pricing is Being Driven by Demand
Written by John Packard
January 28, 2014
Mark Millet, CEO of Steel Dynamics told those listening to the SDI earnings conference call that second half 2013 sheet pricing appreciation was assisted by raw material pricing (higher scrap prices) and some supply disruptions. However, the “…underlying appreciation was driven by demand.”
He went on to state that “…it’s a little difficult to determine the current market direction [SMU Price Momentum Indicator is at Neutral at this time]…Some would say that it’s turned slightly. But given the way the holidays fell, given the incredible bad weather, I think the markets are only just getting back to work really. And it’s hard to say whether or not there is a material change in direction. As I said earlier, though, the overall sentiment, certainly market sentiment certainly doesn’t correlate with what we have on our radar screen…”
The SDI CEO went on to point on various market segments which are experiencing growth. This included shale gas, automotive, energy markets (contingent on a reasonable level of imports), residential construction where Mr. Millet spoke specifically about garage door, HVAC and studs as “materializing in our backlog.” Millet also is seeing growth in non-residential construction where, “…we see continued steady growth in our beam backlog” as well as in their joist business. He also pointed to strength in Class A trucks which was affirmed by commentary made by Cummins in Canada on Monday.
Mr. Millet also pointed out the domestic steel market has improved from a capacity standpoint with RG Steel having impacted the market by at least 1 million tons which has come out of the market and over the past few years about three to four million tons.
“If you look at the negativity and the volatility of Wall Street here the last week or two, we certainly don’t see it in our business and in our order book. And moving forward, we are and will remain very, very, very optimistic….”
John Packard
Read more from John PackardLatest in Steel Mills
Nucor lowers 2024 output estimate for Brandenburg plate mill
Nucor has lowered the 2024 production estimate for its Brandenburg, Ky., plate mill due to soft market conditions.
SSAB adjusts output in weak Q3, readies for Q4 rebound
SSAB said lower plate prices in the US were the primary reason for reduced results in the second quarter. With a dismal Q3 outlook, the Swedish steelmaker is adjusting production across its facilities. That includes moving up its annual US mill outage in anticipation of a better Q4. SSAB Americas Revenues in the Americas segment […]
Topalian puts focus on “unfair” trade, eyes USMCA partners
Nucor’s top executive expressed concerns over unfair trade practices, highlighting increased steel imports from Mexico and Canada.
Cliffs sees close of Stelco buy, bottom to steel tags, and Mexico out of USMCA
Cleveland-Cliffs expects its acquisition of Canada’s Stelco to close later this year, which will help the the Cleveland-based steelmaker as a bottom to steel tags nears.
Nucor posts lower Q2 earnings, predicts tough Q3 too
Nucor recording lower second quarter earnings on falling steel prices. And the Charlotte, N.C.-based predicted that profits would be lower still in the third quarter, primarily because of weaker results from its steel mills divisions.