SEATTLE (Scrap Monster): The Q2 2022 results announced by Fort Wayne, Indiana-based Steel Dynamics, Inc. (SDI) indicate that the company’s steel operations remained historically strong during the quarterly period.
The operating income from steel operations stood at $1.1 billion. The higher flat roll steel shipments during the quarter were offset by lower average flat roll steel pricing and metal spread compression within the sector, which ultimately resulted in incremental decline in earnings. The company reported strong demand for its long product steel as well. Meantime, the average ferrous scrap cost melted at its steel mills increased to $538 per ton, said the company press release.
The metal recycling operations saw its operating income jump to $58 million, driven by strong demand and related metal spread. The robust demand led to 7% increase in ferrous scrap shipments during the quarter.
The SDI steel fabrication operations reported record operating income of $599 million in Q2 this year, significantly higher upon comparison with the sequential quarter. The significantly higher selling values and strong shipments more than offset higher steel input costs. The momentum in non-residential construction sector will further drive the segment results in 2023 as well, the company noted.