Steel Mills
December 16, 2015
SDI Guidance Expects Lower Profit in Q4
Written by Sandy Williams
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 continue to have strong demand indicating a positive trend for non-residential construction. Fabrication shipments are expected to be higher than third quarter shipments but average pricing will be lower due to market conditions and a shift in product mix. Profitability for fabricated is expected to decrease, despite improved volume, due to the lower average pricing.
