Steel Mills
Steel Dynamics Expecting Stronger Q1
Written by Sandy Williams
March 20, 2017
Steel Dynamics expects a meaningful increase in first quarter profits. Earnings per diluted share are expected to be in the range of $0.77 to $0.81 compared to $0.08 per diluted share in Q4 2016 and $0.26 per diluted share in Q1 2016.
In first quarter guidance comments, SDI attributed stronger results to higher shipments and metal spread expansion. Higher average steel prices in Q1 are expected to offset increased ferrous scrap costs.
The flat rolled division is driving the anticipated earnings, said SDI, as a result of stronger demand and historically low customer inventory levels. Steel Dynamics is expecting macroeconomic and market conditions to benefit the steel industry in 2017, noting that construction and automotive remain strong, and the energy sector is beginning to recover.
Metals recycling will benefit in Q1 based on higher ferrous scrap demand and metal spread expansion from increased domestic steel mill utilization.
Steel Dynamic’s fabricated segment is expected to improve from increased shipments. Demand has been strong for steel joist and deck products indicating positive growth in the non-residential construction market.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
Cliffs unveils new hydrogen-powered stainless line in Ohio
CEO Lourenco Goncalves, flanked by state leaders and union reps, touted the project as proof that US manufacturing is not only alive, but also advancing.
Cliffs idles Steelton, Riverdale, and Conshohocken operations
Cliffs has idled facilities in Riverdale, Ill., and Conshohocken and Steelton, Pa.
Radius loss narrows, volumes climb in ‘healthy’ West Coast market
Stronger steel demand in the Western US, rising scrap flows, and improved rolling mill utilization drove sequential gains for Portland, Ore.-based Radius Recycling.
AISI: Raw steel production backs off multi-year high
US raw steel output edged lower last week after hitting a multi-year high in mid-June, according to the American Iron and Steel Institute (AISI).
Private equity firm Atlas Holdings to acquire Evraz North America
Atlas Holdings said it has signed a definitive agreement to acquire Evraz North America (Evraz NA). The Greenwich, Conn.-based private equity firm said it expects the deal for the Chicago-based steelmaker to close in the second quarter of 2025 subject to various closing condition.