Steel Dynamics expects steel demand to improve in H2 2020, steel production fell by 4pc to 4.2mn mt in H1. Also, the company has signed long-term agreements with two customers to co-locate production onsite its new EAF mill to be built at an estimated capital cost of $1.9bn. The mill’s steel-consuming and processing facility is slated to be over 725,748mt.
The company is yet to determine the negative impact of COVID-19 on its steel demand and expects better results in the second half of the year compared to Q2 2020 given the automotive and construction industries have commenced production.
In H1 2020, the company’s steel mill production fell by 4pc to 4.2mn mt compared to 4.4mn mt in H1 2019. Steel mill production in Q2 2020 also witnessed a 12pc fall to 1.9mn mt from 2.1mn mt in Q2 2019 and was down by 16pc from 2.3mn mt in Q1 2020.
Steel Dynamics’ flat roll steel shipment witnessed a 5pc decrease to 2.7mn mt in H1 2020 compared to 2.8mn mt during the same period in 2019. Flat-rolled steel shipment in the second quarter of 2020 also saw a 14pc decline to 1.2mn mt compared to 1.4mn mt in Q2 2019 and fell by 15pc from the same amount in Q1 2020.
Company’s long product shipment, on the other hand, increased by 13pc in H1 2020 to 757,528mt as opposed to 660,680mt in H1 2019. Long product shipment in Q2 2020 also ticked up by 12pc to 363,010mt from 319,341mt in Q2 2019, while it declined by 8pc from 394,518mt in Q1 2020.
The firm’s consolidated operating income fell to $432,536 in H1 compared to $576,874 in the first half of 2019. The consolidated operating income in Q2 dropped to $158,850 from $285,032 in Q2 2019, and down from $272,686 in Q1 2020.
Steel Dynamic’s adjusted EBITDA saw a decrease to $573,289 in H1 compared to $747,466 in H1 2019. Adjusted EBITDA in the second quarter of the year declined to $217,406 compared to $365,424 and down from $355,883 in Q1 2020.