Steel Dynamics increased its net profit by 27.5% q/q in Q2

In the second quarter of 2023, the American steel producer Steel Dynamics increased its net profit by 27.5% compared to the previous quarter – up to $812 million. Compared to the same period in 2022, the figure decreased by 32.3%. SteelOrbis reports about it.

The company’s sales volume for April-June 2023 was $5.1 billion. The operating income of the steelmaking division for this period was $706 million, as steel supplies remained stable at 3.2 million tons, and the increase in steel prices offset the increase in scrap costs.

The Sinton Texas Flat Roll division performed at the level of the previous quarter, ending the period with positive EBITDA. The company expects the Texas unit to operate at 80% capacity by the end of 2023 as it gradually ramps up production.

The operating profit of the steel structures division remained at $40 million, as the increase in product deliveries to 1.5 million tons compensated for the drop in steel prices.

As GMK Center reported earlier, in 2022, Steel Dynamics achieved a record profit in the amount of $3.9 billion compared to $3.2 billion for 2021. The company’s revenue from product sales in 2022 amounted to $22.3 billion, compared to $18.4 billion in the previous year, which is 21% more y/y.

Also, US steel enterprises in 2022 reduced imports of steel by 2% compared to 2021 – to 31.46 million tons. The volume of finished products in the total volume of steel imports in the United States last year was 22.76 million tons. This is 10.9% more compared to the previous year.