SDI Earnings From Steel Operations Hit Fresh Peak

SEATTLE (Scrap Monster): The second quarter 2021 operating income from steel operations touched a record $1.0 billion, said Fort Wayne, Indiana-based Steel Dynamics Inc. (SDI).

The income surged higher by 59% over the sequential quarter, aided by significant metal spread expansion and record quarterly steel shipments. The average external product selling price for steel operations rose to $1,292 per ton. The average ferrous scrap cost per ton melted at its steel mills stood at $439 per ton.

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The Q2 2021 operating income from SDI’s metals recycling operations was $51 million. Record quarterly shipments coupled with improved realized pricing boosted the operating income from its steel fabrication operations, which totalled $28 million during the second quarter 2021. The steel fabrication order backlog touched new record level at the end of June this year.

The macroeconomic and market conditions are likely to support strong steel demand through 2021 and beyond. The automotive sector continues to remain strong, with other sectors such as construction, equipment and transportation likely to remain solid. The company expects another record performance during Q3 this year, mainly due to ongoing positive North American steel market dynamics.