AMU
July 19, 2024
Written by Stephanie Ritenbaugh
Operating income from Steel Dynamics Inc.’s (SDI) recycling operations clocked in higher in the second quarter than in the first on increasing volumes and despite lower realized pricing.
Recycling operations brought in $32.1 million, an increase over $22.6 million in Q1, but lower than the $40.3 million last year, the Fort Wayne, Ind.-based company said Thursday.
Kibar Americas said production has started at its aluminum plant in Fairmont, W.Va., where it will manufacture products for the HVAC, packaging, automotive and industrial sectors.
China is bumping up against its official primary production capacity limit of 45.3 million metric tons/year, but production can still increase through “capacity creep.”
Automotive aluminum demand is rising as extrusions, sheet, and castings gain ground across vehicle applications and powertrains.
Recycler demand increased while fewer respondents reported sufficient obsolete scrap, even as inventory drawdowns remained widespread.
On July 9, Aluminum Market Update published “Did aluminum markets price in peace too soon?” The article used data and events through July 8 to test whether falling prices and light financial participation had moved ahead of conditions around the Strait of Hormuz. A month later, LME aluminum positioning offers a useful checkpoint on how that trade played out.