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Released April 22, 2020 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Steel Dynamics Incorporated (NASDAG:STLD) (Fort Wayne, Indiana) is pressing forward with plans to have its $1.9 billion Sinton
Industrial Info is tracking $2.35 billion worth of projects by Steel Dynamics, including the 3 million-ton-per-year electric-arc-furnace (EAF), flat-roll steel mill in Texas.
Click on the image at right for a graph showing Steel Dynamics project activity by U.S. market region.
The company said in a press release it received the required environmental permitting in January to allow for full construction, and its plan to start operations by mid-2021 "currently remains unchanged."
During Steel Dynamics' first-quarter earnings conference call on Tuesday with industry analysts, Chief Executive Officer Mark Millett and Chief Financial Officer Theresa Wagler said changing economics during the current quarter could make the company reassess the project timeline.
Wagler said the company plans to commit $1.2 billion in capital expenditures for the remainder of this year, including $1 billion for the Sinton project. She said that as states lift their stay-at-home orders and more businesses reopen, the company will get a better idea of the impact on steel consumption.
As such, she said, Steel Dynamics can decide whether it needs to push any of the $1.2 billion in planned capital expenditures into the following year, adding, "I don't believe we will have to do that today."
Millett noted that much of the Sinton project spending is planned for the later part of this year. "It is a huge lever we can pull if necessary," he added.
Located near Corpus Christi, Texas, the flat roll steel mill will serve markets in the U.S. West Coast and Southwest, as well as Mexico. For more information, see Industrial Info's project report.
Steel Dynamics reported first-quarter net income of $187 million and net sales of $2.6 billion, compared with first-quarter 2019 net income of $204 million and net sales of $2.8 billion.
The company's steel fabrication platform delivered strong results, Millett said, but noted that the segment could face more challenges in the next few months, as construction industry activity often lags economic downturns by four to six months.
The next quarter will contain "a tough couple of months for us," Millett said, but added the company has continued to see strength in segments such as
Millett also observed that the U.S. automotive-manufacturing segment could pick up as auto plants across the nation reopen their doors, starting next week.
On the other hand, the now-collapsed
Overall, the steel industry in the U.S. is struggling with the impact of COVID-19 and the economic downturn.
In the week ending April 18, domestic raw steel production was 1,277,000 net tons, down 32.5% from the same period last year, according to the American Iron and Steel Institute (AISI). The capacity utilization rate for the week was 57.0%, compared with 81.3% a year earlier.
Adjusted year-to-date production through April 18 was 27.6 million net tons, down 6.6% from a year earlier, while the capability utilization rate was 76.6%, compared with 81.5% for the same period of 2019.
United States Steel Corporation (NYSE:X) (U.S. Steel) (Pittsburgh, Pennsylvania) recently idled Blast Furnace #No. 8 indefinitely at its Gary Works facility in Indiana, marking the company's third blast furnace to be shuttered in recent weeks. The company also shut down Blast Furnace No. #4 at Gary Works and Blast Furnace A at its Granite City, Illinois, facility. The producer also will temporarily idle its taconite mine and iron ore pellet facility in Keetac, Minnesota, according to news accounts.
U.S. Steel said last month it would reduce 2020 capital expenditures by 14% from $895 million to $750 million in response to COVID-19. The endless casting line and cogeneration projects at Mon Valley Works in Pennsylvania would be delayed as a result. Click here for the projects.
Industrial Info is following more than $3.4 billion worth of steel-mill project activity in the U.S. that has felt the impact of the pandemic, mainly by delays.
Cleveland-Cliffs Incorporated (NYSE:CLF) (Cleveland, Ohio) said it has temporarily halted construction at its $700 million, 1.9 million-ton-per-year, direct-reduced/hot-briquetted iron plant in Toledo, Ohio. For more information, see Industrial Info's project report.
It also was temporarily idling production at two of its iron ore-mining operations, Northshore Mining in Minnesota and Tilden Mine in Michigan. The company said that unless business circumstances change, it would temporarily idle production at Northshore mine by mid-April, with a planned restart by August 2020, and the Tilden mine would be temporarily idled by the end of April, with a planned restart in July 2020.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
Industrial Info is tracking $2.35 billion worth of projects by Steel Dynamics, including the 3 million-ton-per-year electric-arc-furnace (EAF), flat-roll steel mill in Texas.
Click on the image at right for a graph showing Steel Dynamics project activity by U.S. market region.The company said in a press release it received the required environmental permitting in January to allow for full construction, and its plan to start operations by mid-2021 "currently remains unchanged."
During Steel Dynamics' first-quarter earnings conference call on Tuesday with industry analysts, Chief Executive Officer Mark Millett and Chief Financial Officer Theresa Wagler said changing economics during the current quarter could make the company reassess the project timeline.
Wagler said the company plans to commit $1.2 billion in capital expenditures for the remainder of this year, including $1 billion for the Sinton project. She said that as states lift their stay-at-home orders and more businesses reopen, the company will get a better idea of the impact on steel consumption.
As such, she said, Steel Dynamics can decide whether it needs to push any of the $1.2 billion in planned capital expenditures into the following year, adding, "I don't believe we will have to do that today."
Millett noted that much of the Sinton project spending is planned for the later part of this year. "It is a huge lever we can pull if necessary," he added.
Located near Corpus Christi, Texas, the flat roll steel mill will serve markets in the U.S. West Coast and Southwest, as well as Mexico. For more information, see Industrial Info's project report.
Steel Dynamics reported first-quarter net income of $187 million and net sales of $2.6 billion, compared with first-quarter 2019 net income of $204 million and net sales of $2.8 billion.
The company's steel fabrication platform delivered strong results, Millett said, but noted that the segment could face more challenges in the next few months, as construction industry activity often lags economic downturns by four to six months.
The next quarter will contain "a tough couple of months for us," Millett said, but added the company has continued to see strength in segments such as
Millett also observed that the U.S. automotive-manufacturing segment could pick up as auto plants across the nation reopen their doors, starting next week.
On the other hand, the now-collapsed
Overall, the steel industry in the U.S. is struggling with the impact of COVID-19 and the economic downturn.
In the week ending April 18, domestic raw steel production was 1,277,000 net tons, down 32.5% from the same period last year, according to the American Iron and Steel Institute (AISI). The capacity utilization rate for the week was 57.0%, compared with 81.3% a year earlier.
Adjusted year-to-date production through April 18 was 27.6 million net tons, down 6.6% from a year earlier, while the capability utilization rate was 76.6%, compared with 81.5% for the same period of 2019.
United States Steel Corporation (NYSE:X) (U.S. Steel) (Pittsburgh, Pennsylvania) recently idled Blast Furnace #No. 8 indefinitely at its Gary Works facility in Indiana, marking the company's third blast furnace to be shuttered in recent weeks. The company also shut down Blast Furnace No. #4 at Gary Works and Blast Furnace A at its Granite City, Illinois, facility. The producer also will temporarily idle its taconite mine and iron ore pellet facility in Keetac, Minnesota, according to news accounts.
U.S. Steel said last month it would reduce 2020 capital expenditures by 14% from $895 million to $750 million in response to COVID-19. The endless casting line and cogeneration projects at Mon Valley Works in Pennsylvania would be delayed as a result. Click here for the projects.
Industrial Info is following more than $3.4 billion worth of steel-mill project activity in the U.S. that has felt the impact of the pandemic, mainly by delays.
Cleveland-Cliffs Incorporated (NYSE:CLF) (Cleveland, Ohio) said it has temporarily halted construction at its $700 million, 1.9 million-ton-per-year, direct-reduced/hot-briquetted iron plant in Toledo, Ohio. For more information, see Industrial Info's project report.
It also was temporarily idling production at two of its iron ore-mining operations, Northshore Mining in Minnesota and Tilden Mine in Michigan. The company said that unless business circumstances change, it would temporarily idle production at Northshore mine by mid-April, with a planned restart by August 2020, and the Tilden mine would be temporarily idled by the end of April, with a planned restart in July 2020.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
