Market Segment

SDI Sinton Starts Up Hot End, Rolls First Coil

Written by Michael Cowden

January 6, 2022

Steel Dynamics Inc. (SDI) has started up the hot end of its $1.9 billion steel mill in Sinton, Texas, according to sources familiar with the matter.

The Fort Wayne, Ind.-based steelmaker has melted a limited number of heats and rolled a limited number of coils – standard practice for a new mill, they said.

SDISDI officials were present for the first coil over the holidays, and there were no hiccups. Full production is not expected until later in the first quarter, sources said.

Company executives have said in past public remarks that the hot end was expected to begin production by the end of 2021 following various delays stemming from logistical snarls, late deliveries and COVID-related labor shortages.

The Sinton mill is expected to have annual capacity of 3 million tons. But it is not expected to reach its full run rate until the middle of 2022. Shipments this year are expected to be approximately 2 million to 2.2 million tons.

SDI plans to target markets on the West Coast, in Mexico and to compete with imports with the new mill.

By Michael Cowden, Michael@SteelMarketUpdate.com

Michael Cowden

Michael Cowden is editor-in-chief for Steel Market Update. Cowden has covered the steel industry since 2007. He specializes in flat-rolled steel but has also reported on steel long products, steel pipe and tube, and aluminum. Before joining SMU, Cowden held reporting jobs at Fastmarkets AMM in Chicago, the Associated Press in Pittsburgh, and the Cambodia Daily in Phnom Penh. He has also worked as a copy editor and in marketing at the University of Chicago Press. Cowden has a BA in English from the University of Chicago and an MSJ journalism from Northwestern University’s Medill School of Journalism. Contact him at michael@steelmarketupdate.com or 724-759-7872.

Read more from Michael Cowden

Latest in Market Segment