Steel Dynamics says ‘confident’ in strong domestic steel consumption

“We remain confident that market factors are in place to support strong domestic steel and aluminum product consumption in the coming years, as the uncertainty concerning trade and tax policies is mitigated and the interest rate environment improves,” continued CEO Millett. “Additionally, based on conversations with our customer base, we believe demand for lower-carbon-emission, domestically produced steel and aluminum products will competitively advantage our businesses now and in the future. As unfairly traded imports decline, uncertainty dissipates, and growth of manufacturing continues to increase in the U.S., we believe a strong market environment will emerge, supporting pricing and demand. Additionally, we view the U.S. International Trade Commission’s preliminary determinations on coated flat rolled steel as a significant positive development. A reduction in unfairly traded imports of these products would be a meaningful tailwind for us, as we are the largest non-automotive flat rolled steel coater in the United States. We expect to receive final determinations before the end of the third quarter 2025. Taken together, these broader market dynamics are expected to positively impact all of our operating platforms. Our aluminum team continues to successfully commission the company’s Columbus, Mississippi aluminum flat rolled products mill, along with the San Luis Potosi, Mexico satellite recycled slab center. Last month we successfully produced and sold our first aluminum coils, and we expect volume to steadily increase over the coming months. We anticipate exiting 2025 at a utilization rate of between 40 and 50 percent, and 2026 at an exit rate of 75 percent, as product certifications occur. We have intentionally aligned our growth with the evolving needs of our customers by delivering efficient, sustainable supply chain solutions alongside the highest quality products. To date, this strategy has been focused primarily on the steel industry. However, many of our flat rolled steel customers are also significant consumers and processors of aluminum flat rolled products. We are excited to expand and diversify our end markets by supplying aluminum flat rolled products with high recycled content-serving the counter-cyclical, sustainability-driven beverage can and packaging industry, as well as the automotive, industrial, and construction sectors. Our proven, performance-based operating culture-combined with deep expertise in building and running cost-effective, highly profitable flat rolled steel mills-positions us exceptionally well to execute on this strategic initiative. We believe this expansion represents a compelling opportunity for long-term value creation, and both our customers and our teams are energized by the potential it brings. We remain firmly committed to the health and safety of our teams, their families, and the communities we serve, while meeting the evolving needs of our customers. Our culture and performance-driven business model continue to positively differentiate our company. We remain focused on delivering superior value to our team members, customers, and shareholders,” concluded Millett.