Steel Mills
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/media/k2/items/src/84b467a1f3a6dc7061b8fb98dd2ec362.jpg)
SDI Expects Lower Q3 Earnings, Continues to Be Impacted by Sinton Ramp-Up
Written by Laura Miller
September 15, 2022
Steel Dynamics Inc. expects its third quarter earnings to be down from the second quarter as the Fort Wayne, Ind.-based steelmaker is seeing lower flat rolled earnings and pricing, as well as continued impacts from the start-up of its new sheet mill in Sinton, Texas.
SDI’s earnings guidance is in the range of $4.93–4.97 per diluted share for Q3. This includes cost impacts of $0.40 per diluted share related to the Sinton mill. The Q3 guidance is down from the $6.44 per diluted share achieved in Q2 (when costs associated with Sinton’s start-up were $0.29 per diluted share), but up slightly from the $4.85 per diluted share seen in Q3 2021 earnings.
Profitability in the company’s steel operations is anticipated to be historically strong for Q3, SDI noted, but will be down noticeably sequentially “due to lower earnings from the company’s flat-rolled steel operations, as lower average flat-rolled steel pricing is expected to more than offset lower raw material costs and higher shipments.”
Impacts of high-cost steel substrate Q3 inventory at the Texas Flat Roll Steel Division should be alleviated before year’s end, SDI commented.
Lower Q3 pricing and volumes in ferrous and nonferrous scrap will result in lower earnings within the company’s metals recycling operations. At the same time, the steel fabrication segment’s Q3 earnings will be higher than its record Q2 results due to strong volumes and expanding margins. A strong non-residential construction market will result in continuing strength in the segment’s order backlog and this is expected to continue well into 2023.
By Laura Miller, Laura@SteelMarketUpdate.com
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2024/02/SMU_LM_headshot.png.jpg-150x150.png)
Laura Miller
Read more from Laura MillerLatest in Steel Mills
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/Nucor.png)
Nucor lowers 2024 output estimate for Brandenburg plate mill
Nucor has lowered the 2024 production estimate for its Brandenburg, Ky., plate mill due to soft market conditions.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/SSAB.png)
SSAB adjusts output in weak Q3, readies for Q4 rebound
SSAB said lower plate prices in the US were the primary reason for reduced results in the second quarter. With a dismal Q3 outlook, the Swedish steelmaker is adjusting production across its facilities. That includes moving up its annual US mill outage in anticipation of a better Q4. SSAB Americas Revenues in the Americas segment […]
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/Nucor.png)
Topalian puts focus on “unfair” trade, eyes USMCA partners
Nucor’s top executive expressed concerns over unfair trade practices, highlighting increased steel imports from Mexico and Canada.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/Cliffs_logo2.2.png)
Cliffs sees close of Stelco buy, bottom to steel tags, and Mexico out of USMCA
Cleveland-Cliffs expects its acquisition of Canada’s Stelco to close later this year, which will help the the Cleveland-based steelmaker as a bottom to steel tags nears.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/Nucor.png)
Nucor posts lower Q2 earnings, predicts tough Q3 too
Nucor recording lower second quarter earnings on falling steel prices. And the Charlotte, N.C.-based predicted that profits would be lower still in the third quarter, primarily because of weaker results from its steel mills divisions.