Steel Dynamics breaks steel sales record in 2022
Steel Dynamics, Inc. one of the largest steel producers and metal recyclers in the United States, broke sales records in 2022.
Its net sales were $22.261 billion last year, an increase of 20.9% over 2021.
The company‘s main sources of revenue come from the manufacture and sale of steel products, the processing and sale of recycled ferrous and nonferrous metals, and the manufacture and sale of steel joists and roofing products.
When considering the same comparisons, its net income increased 19.5% to US$3.879 billion.
“Steel prices have strengthened, and our order activity and backlog remain solid. We believe North American steel consumption will increase in 2023, and that demand for lower-carbon U.S.-produced steel products, coupled with reduced imports, will support steel prices,” said Mark D. Millett, the company’s president.
Also, the order backlog for Steel Dynamics’ steelmaking operations remains historically strong, based on volume and forward pricing levels that extend beyond the first half of 2023.
Since acquiring ROCA in October 2022, its integration into the company’s Mexican metals recycling operations is also progressing well and will benefit the company’s scrap and steel businesses in 2023.
Steel Dynamics is in a position of strength going into 2023. The company is starting up operations at its new electric arc furnace flat-rolling mill located in Texas.
According to its forecast, the company expects Sinton’s annual utilization to be around 80% by 2023.
In addition, its four additional value-added flat-rolled steel coating lines, consisting of two painting lines and two galvanizing lines with Galvalume coating capabilities, are scheduled to begin operations in the second half of 2023.
One set will be located on-site at Sinton, providing it with the same diversification and higher-margin product capabilities as its two existing flat-rolled steel divisions.
The other two lines will be placed in its Heartland flat-rolled division to support growing demand for coated flat-rolled steel in the region and further increase the diversification and cash-generating capacity of its existing Midwest operations.