Steel Dynamics anticipates stronger earnings results in first quarter 2016 due to higher steel shipments. A significant increase in flat rolled product volume is expected due to better aligned customer inventories and a decrease in import volumes. Lower average realized steel product pricing will more than offset savings from lower ferrous scrap costs, said SDI. […] The post Steel Dynamics Expects Strong Quarter appeared first on Steel Market Update.
The year 2015 was a brutal one for the domestic steel mills as well as the distributors who service the end user markets on a spot basis. Many of the service centers who purchase secondary (non-prime or excess) steel have suffered and have had to change the way they conduct business in order to survive. […] The post Secondary Service Centers Hoping 2016 Will be a Better Year appeared first on Steel Market Update.
Steel Dynamics’ struggling recycling segment widened the company’s net loss to $253 million in fourth quarter 2015. It was determined that the book value of the metals recycling segment recorded $435 million in non-cash goodwill and other related asset impairment charge. Excluding the metals recycling charges, adjusted net income was $22 million on net sales […] The post SDI Reports Continued Growth in Construction, HR Weakest Product appeared first on Steel Market Update.
The last couple of days have been hectic as we worked through the articles seen in tonight’s newsletter as well as numerous articles that we are working on various topics. The two headline articles are, of course, the next round of flat rolled price increases. The Nucor $20 hot rolled and $30 cold rolled and […] The post Final Thoughts appeared first on Steel Market Update.
Steel Dynamics expects reduced profitability from its steel operations in fourth quarter compared to third. Lower steel shipments, customer destocking and seasonal demand weakness are impacting the steel platform and, in particular, commodity grade hot roll products. Lower steel pricing will offset any benefits from lower ferrous scrap costs. Fabricated steel joist and decking products […] The post SDI Guidance Expects Lower Profit in Q4 appeared first on Steel Market Update.
Ferrous scrap prices are one of the key indicators to watch as the market determines if we have reached the bottom in the slide in flat rolled prices and, if prices will rebound from here. The thought process has been that a move higher in scrap will help change the psychology of the market and […] The post December Scrap Prices: Sideways to Up $20 appeared first on Steel Market Update.
We learned late this afternoon that two domestic steel mills are offering to pay higher prices for shredded scrap from east coast dealers. Shredded scrap buy offers have been made at $180-$185 per gross ton up $10 to $15 per gross ton higher than November numbers (and higher than October numbers since November prices moved […] The post December Scrap Pricing: Next Move is Up appeared first on Steel Market Update.
A debate has begun as to when flat rolled steel prices will bottom and begin to reverse course. Part of that dialogue is what will supply look like should US Steel go through with balancing their production by temporarily taking down their Granite City Works. This would be on top of the trade suits which […] The post Removal of Supply Should Tighten Market – The Question is When? appeared first on Steel Market Update.
Steel Dynamics expressed concern about imports during the company’s second quarter earnings call. “On the trade front, we’re pleased the ITC has confirmed the flood of unfairly traded imports of corrosion-resistant sheets deal has materially reduced our shipments, pricing and profitability. I believe in fair trade, but the U.S. has become a dumping ground for […] The post Steel Dynamics Optimistic on Steel Pricing for H2 appeared first on Steel Market Update.
Ferrous scrap prices rose in June as obsolete flows continue to be weaker than normal and the domestic mills have come back into the market. The strength of the market has come as a surprise to dealers and mills alike. Number 1 Heavy Melt (HMS) ranged from $230 to $265 per gross ton with the […] The post Obsolete Scrap Flows Down 30%, June Prices Rise $20-$30 appeared first on Steel Market Update.