US steel maker Steel Dynamics Inc has reported first quarter 2022 net sales of USD 5.6 billion and net income of USD 1.1 billion. SDI Chairman, President & CEO Mr Mark D Millett said "The team delivered another tremendous performance, achieving record quarterly operating and financial performance. This record performance displays the power of our highly diversified, value-added, circular manufacturing model, as the strength in our steel fabrication operations more than offset moderation in our flat roll steel business, as realized hot roll coil selling values declined from peak 2021 levels during the quarter. Flat roll steel prices have recently firmed with extending delivery lead-times, related to strong demand dynamics, coupled with higher input costs and global flat roll steel supply disruptions. The automotive, construction, and industrial sectors continue to lead steel demand. We are also starting to see a significant increase in steel demand from the energy sector.” First quarter 2022 operating income for the company's steel operations remained strong at USD 1.2 billion, but lower than record sequential fourth quarter results of USD 1.4 billion. The decline in earnings resulted from metal spread compression within the company's flat roll operations, as hot roll coil pricing moderated. Alternatively, pricing and metal spreads expanded within the company's long product steel businesses. The first quarter 2022 average external product selling price for the company's steel operations decreased just over USD 100 sequentially to USD 1,561 per ton. The average ferrous scrap cost per ton melted at the company's steel mills decreased USD 16 sequentially to USD 474 per ton. First quarter operating income from the company's metals recycling operations remained strong at USD 48 million slightly above fourth quarter sequential results, based on improved metal spread offsetting modestly lower shipments. The company's steel fabrication operations reported record operating income of USD 467 million in the first quarter 2022, almost double sequential fourth quarter results, as significantly higher selling values and strong shipments, more than offset marginally higher steel input costs. The non-residential construction sector remains strong, resulting in a record order backlog with record forward-pricing for the company's steel fabrication platform. The company anticipates this momentum to continue through 2022 based on these dynamics. Outlook - "SDIO is confident that market conditions are in place for domestic steel consumption to continue to be strong this year and into 2023. Order entry activity continues to be robust across all of our businesses. SDI believes that steel prices will remain supported by strong demand, balanced customer inventory levels, and elevated raw material costs.”
US steel maker Steel Dynamics Inc has reported first quarter 2022 net sales of USD 5.6 billion and net income of USD 1.1 billion. SDI Chairman, President & CEO Mr Mark D Millett said "The team delivered another tremendous performance, achieving record quarterly operating and financial performance. This record performance displays the power of our highly diversified, value-added, circular manufacturing model, as the strength in our steel fabrication operations more than offset moderation in our flat roll steel business, as realized hot roll coil selling values declined from peak 2021 levels during the quarter. Flat roll steel prices have recently firmed with extending delivery lead-times, related to strong demand dynamics, coupled with higher input costs and global flat roll steel supply disruptions. The automotive, construction, and industrial sectors continue to lead steel demand. We are also starting to see a significant increase in steel demand from the energy sector.” First quarter 2022 operating income for the company's steel operations remained strong at USD 1.2 billion, but lower than record sequential fourth quarter results of USD 1.4 billion. The decline in earnings resulted from metal spread compression within the company's flat roll operations, as hot roll coil pricing moderated. Alternatively, pricing and metal spreads expanded within the company's long product steel businesses. The first quarter 2022 average external product selling price for the company's steel operations decreased just over USD 100 sequentially to USD 1,561 per ton. The average ferrous scrap cost per ton melted at the company's steel mills decreased USD 16 sequentially to USD 474 per ton. First quarter operating income from the company's metals recycling operations remained strong at USD 48 million slightly above fourth quarter sequential results, based on improved metal spread offsetting modestly lower shipments. The company's steel fabrication operations reported record operating income of USD 467 million in the first quarter 2022, almost double sequential fourth quarter results, as significantly higher selling values and strong shipments, more than offset marginally higher steel input costs. The non-residential construction sector remains strong, resulting in a record order backlog with record forward-pricing for the company's steel fabrication platform. The company anticipates this momentum to continue through 2022 based on these dynamics. Outlook - "SDIO is confident that market conditions are in place for domestic steel consumption to continue to be strong this year and into 2023. Order entry activity continues to be robust across all of our businesses. SDI believes that steel prices will remain supported by strong demand, balanced customer inventory levels, and elevated raw material costs.”
