Metals recycler and steelmaker Steel Dynamics projected ferrous scrap prices to rise slightly in February because of a cold snap restricting scrap flows across the US.
The Indiana-based electric arc furnace steelmaker faced slimmer metals margins in the fourth quarter because steel prices fell further than scrap, Steel Dynamics (SDI) reported in its earnings today.
SDI's average steel selling price fell by $79/short ton (st) to $1,011/st in the fourth quarter of 2024 compared with a year earlier. Its scrap cost fell by $23/st to $370/st, resulting in a slimmer margin during last year's unfavorable steel market conditions.
Prime scrap prices rose by $22/gross ton on average in early January, further eating into flat steel makers' margins, though hot-rolled coil prices rose this week by $20/st to $690/st ex-works US Midwest.
SDI's recycling arm OmniSource shipped 1.42mn gt of ferrous scrap in the fourth quarter, up by 4pc from a year earlier. Nonferrous scrap shipments fell by 3pc to 226mn lbs in the quarter.
The company did not give concrete guidance on shipments in the first quarter but noted that it expected shipments this year to surpass 2024 in all sectors.
SDI reported a $207mn profit in the fourth quarter, down from $424mn in that period a year earlier.
