Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Indiana headquartered steelmaker Steel Dynamics Inc (SDI) is betting on strong steel demand and high prices to drive its earnings to record levels in the second quarter.


The company said in its Q2 2021 earnings guidance on Wednesday, that it expected record quarterly earnings on considerably higher profitability from its steel operations due to the strong steel demand and higher metal prices, especially in flat steel production and sales. SDI noted that ferrous scrap demand has also grown in tandem with improving domestic steel production because of which its profits from recycling operations are expected to grow compared to the first quarter following higher prices and continued shipments of scrap.


In Q2 2021, SDI’s steel shipments may increase across its product range with the company expecting record volumes in sales during the quarter, led by demand from automotive, construction, and other industries. The momentum from the second quarter is expected to continue in the third quarter as well, SDI noted in its guidance.


The steelmaker expects adjusted earnings of $3.34-3.38 per diluted share excluding the costs associated with the construction of its Sinton plant in Q2 2021, compared to $2.10 per diluted share in the previous quarter and $0.36 per diluted share in the second quarter last year.

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