Steel Mills

SDI Modestly Lowers Sinton’s 2022 Production Guidance
Written by David Schollaert
April 21, 2022
Steel Dynamics Inc. (SDI) expects that its new electric-arc furnace sheet mill in Sinton, Texas, will reach a run rate of approximately 80% by the end of the third quarter and over 90% by year-end, company executives said during the quarterly earnings conference call on Thursday.
The Fort Wayne, Ind.-based steelmaker has said that it currently expects 2022 shipments from Sinton to be over 1.5 million tons, slightly behind its original goal of 2 million tons.
The slightly revised guidance is due to “challenges” that prevented its hot end from being fully commissioned by the end of 2021, delaying the first coil – both melted and rolled – by approximately two months.
The reduced volume resulted from a delayed start-up on the hot mill caster, SDI president and CEO Mark Millett said. But the mill has been running extremely well since, and all of it capabilities have been commissioned.
“Just to emphasize, the progress at Sinton is remarkable,” Millett said. “I think it’s going well … and am confident that we will exceed those 1.5 million tons in all honesty, we’re just being conservative. We couldn’t be happier.”
The steelmaker incurred a cost of $84 million or $0.31 per diluted share during the first quarter of 2022 for the continued commissioning and start up of its Sinton flat-rolled steel mill.
SDI’s steel operations generated net income of $1.10 billion in the first quarter, achieving record shipments of 2.9 million tons, of which Sinton contributed 50,000 tons. When fully operational, Sinton will provide an additional 750,000 tons per quarter of availability, company executives said during the call.
“The mill has produced 84.6-inch width coils and down to 0.60 on high-strength low alloy grades,” Millett added. “A slow ramp isn’t all that bad from a supply-demand dynamic right now anyway. … Our ramp-up is going to be solid through the rest of this year.”
By David Schollaert, David@SteelMarketUpdate.com

David Schollaert
Read more from David SchollaertLatest in Steel Mills

Cleveland-Cliffs quietly removes name from Steelton mill
The Cleveland-Cliffs name has been removed from its idled Steelton rail mill. SMU asked Cliffs about the move and if it might signal that it is selling the mill...

Nucor sees sequentially lower Q3 profits across all three business segments
Nucor's third-quarter earnings will be down quarter-over-quarter, but still higher than a year earlier.

Hyundai still on for Louisiana steel mill despite US raid at Georgia battery plant
Hyundai has reaffirmed its commitment to build a steel plant in Louisiana following a US government immigration raid at its battery facility in Georgia.

Hybar lowers output forecast, owning up to EAF startup delay
Hybar LLC’s rebar mill in Osceola, Ark., is now melting scrap and will soon be fulfilling orders, according to CEO David Stickler, despite a six-to-eight-week delay caused by commissioning the world’s first Aura electrical system.

Steel Dynamics guides to more metal, more money in Q3
Steel Dynamics Inc. is bullish heading into the close of the third quarter, with all three of its operating segments tracking higher.