Steel Dynamics reported record net sales of $22.3 billion in 2022. Net income for the Fort Wayne, Ind.-based minimill also came in at a record $3.9 billion.
In the fourth quarter, SDI’s net sales totaled $4.8 billion and net income was $635 million.
“Domestic steel demand was solid throughout the year supported most significantly by the construction, automotive, industrial, and energy sectors,” said Mark Millett, chairman, president and CEO. “Customer steel inventories remained at below historical averages for most of the year, allowing for steady order patterns. Our steel operations achieved record 2022 annual shipments of 12.2 million.”
Fourth-quarter operating income for the company’s steel operations was $178 million, lower than sequential third quarter results, based on seasonally lower shipments and metal spread compression, particularly within the company’s flat-rolled operations. Metal spread compression was amplified by higher raw material costs, as the company’s steel operations worked through high priced pig iron ordered in early 2022 in reaction to the Ukraine and Russia supply-chain disruptions.
The fourth quarter 2022 average external product selling price for the company’s steel operations decreased $257 sequentially to $1,124 per ton. The average ferrous scrap cost per ton melted at the company’s steel mills declined $58 to $414 per ton.
“Customer order entry activity continues to be healthy across our businesses,” said Millett. “Steel pricing has firmed, and our order activity and backlogs remain solid. We believe North American steel consumption will increase in 2023, and that demand for lower-carbon emission, U.S.-produced steel products coupled with lower imports will support steel pricing.”
At Sinton, Texas, home of SDI’s newest mill, the company expects annual utilization to reach approximately 80 percent in 20223. Its two additional flat-rolled steel coating lines, comprised of two paint lines and two galv lines with Galvalume coating capability, are expected to be operational in the second half.