Steel Dynamics CEO Thinks Market Will Support “Good Prices”

Thursday, April 20, 2017 8:30 PM Written by 
Published in Steel Dynamics

This morning Steel Dynamics (SDI) conducted their earnings conference call with analysts where they discussed their 1Q earnings and how they see the steel markets shaping up in the coming months. During the call, CEO Mark Millet told the analysts that the market will support “good prices” for the steel mills and he was not concerned with foreign imports or what Chinese hot rolled is selling for today.

SDI reported net income of $63 million on revenues of $1.7 billion. Operating income for the quarter was $132 million, a result of increased shipments from their steel operations. This is an improvement over their 4th Quarter earnings of $47 million. Shipments increased 17 percent to 2.3 million tons with the most significant improvements coming in flat rolled.

SDI shipped 884,000 tons of HR and HRPO material, 141,000 tons of cold rolled and coated was 711,000 tons.

During the Question and Answer section of the call, SDI CEO Mark Millet told the analysts to focus more on the marketplace in North America and worry less about foreign steel imports. The one case he pointed to was the Circumvention case against Vietnam which he thought we would see some results in the June-July timeframe.

Mark Millet was bullish on the call regarding steel prices, “…there seems to be a commentary or view that the pricing peaked or softening is going to occur mid-year… I think the market dynamics in place is that they're strong and they're certainly going to support the current pricing environment, if not more.



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John Packard

John Packard is the President and Publisher of Steel Market Update. Since 1977, he has been an active participant in the flat rolled steel business in North America. His background provides the unique flavor and quality of Steel Market Update. John has held positions in the service center, steel mill and trading company segments of the flat rolled steel industry. John founded Steel Market Update, Inc. in August 2008. John can be reached via email at: John@SteelMarketUpdate.com or by phone: 800-432-3475.

Website: www.SteelMarketUpdate.com
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