March 17, 2017 - Steel Dynamics Inc. projects its first quarter 2017 earnings will be much higher than for the same 2016 period. Profitability within steelmaking operations is expected to meaningfully increase in comparison to fourth quarter, based on both higher shipments and metal spread expansion. First quarter 2017 average steel product pricing is higher, more than offsetting higher ferrous scrap costs. The anticipated higher earnings are driven by the company's flat roll operations, as demand remains strong and customer inventory levels continue to be positioned at historically low levels.
The company continues to believe that current and anticipated macroeconomic and market conditions are in place to benefit the domestic steel industry in the coming year. The construction and automotive sectors remain strong, and the energy sector has begun to strengthen.
Recycling, and downstream steel deck and joist businesses are also expected to show a profit.