SDI: Steel Demand to be Driven by Construction Sector

SEATTLE (Scrap Monster): Fort Wayne, Indiana-based Steel Dynamics, Inc. (SDI) announced operating results for Q1 this year.

The company generated strong operational income of $1.2 billion from its steel operations, though lower than the sequential quarter results of $1.4 billion. The dip in earnings was due to compression of metal spread within the company’s flat roll operations. Alternatively, the long product steel businesses witnessed expansion of pricing and metal spreads. The average ferrous scrap cost per ton melted at the company’s steel mills stood at $47per ton.

The Q1 2022 operating income from SDI’s metals recycling operations remained strong at $48 million, marginally higher upon comparison with the prior quarter.

The company’s steel fabrication operations reported record operating income of $467 million, driven by significantly higher selling values and robust shipments. The earnings registered two-fold surge over the sequential quarter. SDI expects the momentum to continue in 2022, as non-residential construction sector continues to remain strong.

Mark D. Millett, Chairman, President, and Chief Executive Officer, SDI noted that the market conditions are in place for domestic steel consumption to continue to remain strong this year and into 2023. The automotive, industrial and energy sectors will remain solid steel consumers this year, with demand from the construction sector at the lead, he added.

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