Steel Mills
SDI Sees Q3 Earnings Drop, Lower Flat-Rolled Tags to Hit Steel Ops
Written by Ethan Bernard
September 18, 2023
Steel Dynamics Inc. (SDI) said it expects third-quarter earnings to be lower than the previous quarter and also below the results posted a year earlier.
The Fort Wayne, Ind.-based company reported Q3’23 earnings guidance on Monday in the range of $3.46 to $3.50 per diluted share. This compares with Q2’23 earnings of $4.81 per diluted share and $5.03 per diluted share in the same quarter a year ago.
The company’s results from its steel operations are expected to be “significantly lower” than Q2’23. SDI cited “metal spread contraction” as lower flat-rolled steel tags more than offset cheaper scrap costs.
“Steel shipments are expected to be comparable to sequential second-quarter volume, excluding lost volume related to Sinton’s unplanned July outage,” the company said in a statement.
SDI added: “Steel order activity remains solid.”
SDI restarted its Sinton, Texas, hot strip mill at the beginning of August after a month-long unplanned outage.
The steelmaker said results from its metal recycling operations are expected to be down from Q2 due to “lower volume and metal spread compression as pricing declined throughout the quarter.”
SDI’s steel fabrication operations are also expected to be lower in Q3 vs. Q2. The company cited “lower shipments and metal spread compression as realized selling values declined and steel input costs increased in the quarter.”
Ethan Bernard
Read more from Ethan BernardLatest in Steel Mills
Mexico’s TYASA breaks ground on SBQ rolling mill
Mexican steelmaker Talleres y Aceros (TYASA) broke ground this month on the construction of a new special bar quality (SBQ) rolling mill in the state of Veracruz.
Goncalves sees more US trade actions ahead, says Nippon deal for USS has ‘zero chance’
Cleveland-Cliffs’ Lourenco Goncalves thinks trade measures announced by the US government on Tuesday against China were just the opening salvo in a series of trade actions. Case in point: The Biden administration targeted China’s “unfair” trade policies with additional tariffs on an array of Chinese-made goods - including steel, aluminum, and EVs.
Nucor holds weekly HRC price steady after last week’s cut
Nucor chose to hold its consumer spot price (CSP) for hot-rolled (HR) coil steady this week after stunning the market last week with a significant price decline. The steelmaker said in a letter to customers on Monday morning that its $760-per-short-ton (st) CSP base price for HR coil is effective immediately. The price is unchanged from the CSP announced on May 6 but down $65/st from $825/st April 29.
Nucor’s Jellison set to retire, Spicer tapped for EVP role
Nucor said EVP Douglas J. Jellison plans to retire on June 8 after more than 33 years with the company. Randy J. Spicer will be promoted to EVP effective May 12.
Republican Senators demand Biden block USS sale to Nippon
Three vocal Republican senators are demanding that President Joe Biden block the sale of U.S. Steel to Japan’s Nippon Steel.