Steel Dynamics CEO Says Pricing is Being Driven by Demand

Mark Millet, CEO of Steel Dynamics told those listening to the SDI earnings conference call that second half 2013 sheet pricing appreciation was assisted by raw material pricing (higher scrap prices) and some supply disruptions. However, the “…underlying appreciation was driven by demand.”

He went on to state that “…it’s a little difficult to determine the current market direction [SMU Price Momentum Indicator is at Neutral at this time]…Some would say that it’s turned slightly. But given the way the holidays fell, given the incredible bad weather, I think the markets are only just getting back to work really. And it’s hard to say whether or not there is a material change in direction. As I said earlier, though, the overall sentiment, certainly market sentiment certainly doesn’t correlate with what we have on our radar screen…”