NorthAm steel use poised to rise in 2023: SDI

US steelmaker Steel Dynamics (SDI) expects steel consumption in North America to increase this year.

The electric arc furnace's (EAF) chief executive Mark Millett said rising consumption, more demand for lower-carbon emission steel produced in the US and fewer imports will help support steel pricing in the region. Pricing has firmed, and SDI's order activity and backlogs remain solid, Millett added.

The Argus US Midwest hot rolled coil (HRC) ex-works assessment has risen by 25pc to $781/short ton since hitting a low at the end of November.

Production continues to ramp up at SDI's 3mn st/yr flat-rolled steel mill in Sinton, Texas, which has faced numerous delays in its startup. The company is forecasting Sinton will run at 80pc capacity in 2023, or 2.4mn st/yr, reiterating SDI's planned operating level for the mill announced by Millett in October.

SDI's flat-rolled shipments rose by 24pc to 1.76mn st in the fourth quarter compared with the prior year, while steel processing shipments were flat at 404,000st. Shipments for the structural and rail division fell by 11pc to 408,000st, while engineered bar shipments rose by 3.3pc to 206,000st.

Fourth quarter steel mill production increased by 12pc to 2.68mn st.

Average external sales price fell by 32pc to $1,124/st in the fourth quarter as higher priced raw materials cut into steel margins as finished steel prices fell. In 2022, the average external sales price edged up by 1.3pc to $1,399/st.

Flat rolled shipments rose by 15pc to 6.77mn st in 2022 compared to 2021, while steel processing shipments increased by 1.2pc to 1.67mn st.

SDI made a profit of $634.9mn in the fourth quarter, down by 42pc compared with the prior year. Total annual profit was $3.86bn, up by 20pc compared with 2021.

By Rye Druzin