Posted on 21 Oct 2022
US steelmaker Steel Dynamics' (SDI) downstream businesses are helping it run at higher utilization rates than its competitors, chief executive Mark Millett said.
Millett pointed to multiple SDI-owned downstream businesses totaling 2.5mn short tons of steel demand that help keep his mills full even when outside demand dries up.
"That pulls through volume unto itself, when there's a need we bring a lot more of that in-house to maintain that utilization. Through the cycle we typically are 10-15pc higher utilization than the industry in general," Millett said today.
SDI's steel mills ran at 93pc utilization rates in the third quarter, down slightly from the 95pc in the second quarter and flat with the same period of 2021. The rates do not include the 3mn st/yr flat-rolled mill in Sinton, Texas, which is still undergoing protracted start-up after melting its first coil in February.
If that mill were included, SDI's utilization rate would be just under 81pc.
The latest data from the American Iron and Steel Institute showed the industry running at a 75.7pc.
Competitor Nucor, the largest steelmaker in the US, ran its mills at 77pc in the third quarter, according to its result released today, while integrated steelmaker US Steel has idled two blast furnaces in the last few months.
Source:Argus Media
