Steel Mills

SDI Posts Record Q1, Results Exceed Expectations
Written by David Schollaert
April 21, 2022
Steel Dynamics Inc. (SDI) posted better-than-expected results for the first quarter of 2022. Earnings surpassed the consensus estimate by 8.1% while sales exceeded expectations by 5.5% to start the year, according to data from Zacks.
The Fort Wayne, Ind.-based steelmaker’s strong results came thanks to record steel shipments and increased production. The company said it sees strong demand for steel from the construction industry and the energy sector.
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

David Schollaert
Read more from David SchollaertLatest in Steel Mills

U.S. Steel sues Algoma over iron pellet shipments
U.S. Steel is suing Algoma over the Canadian flat-rolled producer's rejection of iron pellet shipments, arguing it has breached its contract.

August US mill shipments slip but still higher than last year
The American Iron and Steel Institute reported a decline in the monthly shipments of US mills from July to August.

TransPod, Algoma, Supreme Steel linkup anchors Canadian steel in high-speed transit build
The three Canadian companies have announced a strategic partnership to support the development of an ultra-high-speed transit line from Edmonton to Calgary.

Metallus, USW agree to tentative four-year labor deal
Metallus and the United Steelworkers (USW) have agreed to a tentative four-year labor contract.

ArcelorMittal Dofasco resumes cokemaking after emergency maintenance
The Canadian steelmaker reported on Sept. 30 that “urgent maintenance” was needed in its coke plant off-gas systems. The work required coke oven gas from the No. 2 coke plant to be flared for most of that week.