Steel Dynamics Reports Record Second Quarter 2021 Results
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Steel Dynamics Reports Record Second Quarter 2021 Results

US steel maker Steel Dynamics Inc has announced second quarter 2021 financial results. The company reported record second quarter

US steel maker Steel Dynamics Inc has announced second quarter 2021 financial results. The company reported record second quarter 2021 net sales of USD 4.5 billion and net income of USD 702 million. Steel Dynamics Chairman & Chief Executive Officer Mr Mark D Millett said "The team performed exceptionally well, achieving record quarterly operational and financial results, including record sales, operating income, cash flow from operations, and adjusted EBITDA. During the second quarter, steel demand remained robust as shipments and product pricing continued their positive momentum across our entire steel platform. Higher steel selling values drove significant metal spread expansion across the entire platform and were most prominent within the flat roll steel operations, as continued demand strength and historically low customer inventories persisted throughout the supply chain and supported prices. Domestic steel consumption was strong from the automotive, construction, and industrial sectors, while the energy sector continued to show signs of rebounding.”

Second Quarter 2021 Highlights

Record steel and fabrication shipments of 2.9 million tons and 189,000 tons, respectively

Record net sales of USD 4.5 billion

Record operating income of USD 956 million

Record net income of USD 702 million

First half 2021 net sales increased 72% and operating income increased 258% to over USD 1.5 billion, when compared to the same period in 2020. Higher earnings were primarily the result of steel metal spread expansion, as significantly higher average steel selling values, more than offset higher average ferrous scrap costs across the steel platform, especially within the company's flat roll steel operations. Compared to first half 2020, the average first half 2021 external selling price for the company's steel operations increased by USD 403 to USD 1,169 per ton. The average first half 2021 ferrous scrap cost per ton melted at the company's steel mills increased USD 140 to USD 406 per ton.

Mr Millett said "We remain confident that macroeconomic and market conditions are in place to support strong domestic steel demand in 2021 and beyond. We continue to see strong steel demand coupled with extremely low customer steel inventories throughout the supply chain. The automotive sector continues to be strong, despite the electronic chip shortage, and other sectors such as construction, equipment and transportation remain solid. Order entry activity continues to be robust across our businesses, and when coupled with low inventory, supports strong steel selling values. We believe this momentum will continue throughout the year and that our third quarter 2021 earnings could represent another record performance. Based on solid domestic steel fundamentals and customer confidence, we continue to be positive regarding North American steel market dynamics. This constructive environment coupled with our strategic growth initiatives provide firm drivers for our further growth in the coming years.”

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