Market Segment
July 20, 2022
CRU: SDI Enters Flat-Rolled Aluminum, What Happens Next?
Written by CRU Americas
Steel Dynamics (SDI) this week announced plan to enter the aluminium flat-rolled products market. Pledging a $2.2 billion investment in rolling and recycling operations, SDI seeks to leverage its recycling expertise and technology, alongside its performance culture, to penetrate the underserved domestic can sheet and automotive flat-rolled markets in North America.
With a nearly 30-year history of transforming the steel industry using electric arc furnace (EAF) technology, SDI finds aluminium flat-rolled products an adjacent business where their aluminium scrap processing assets and technology, via their OmniSource operations, presents a natural opportunity to grow and offset any substitution risk to their steel business. The 650,000-tonne-per-year mill operations are targeting can sheet (45%), automotive applications (35%) and common alloy (20%) customers.
