SDI mills ran in 4Q at lowest rate in 2 years

US steelmaker Steel Dynamics' (SDI) ran its steel mills in the fourth quarter at the lowest utilization rate in two years, when the US steel industry was pulling itself out of Covid-19-related steel mill and manufacturing shutdowns.

The company's mills ran at 85pc of capacity in the fourth quarter, down from 93pc utilization in the prior quarter and below 90pc for the first time since SDI mills ran at 88pc of capacity in the fourth quarter of 2021. The quarter's utilization rate was the lowest since the fourth quarter of 2020, when mills ran at 84pc of capacity.

The fourth-quarter utilization rate excluded the new 3mn short tons (st)/yr Sinton, Texas flat-rolled mill during its startup. The hot mill at Sinton has "turned the corner" and is running more consistently around 65pc, SDI chief executive Mark Millett said today on an earnings call.

US steel mill utilization rates in the fourth quarter averaged 73.7pc, according to data from the American Iron and Steel Institute.

SDI's flat-roll shipments from its mills in Butler, Indiana; Columbus, Mississippi; and Sinton were 1.76mn st in the fourth quarter, up by 345,000st compared to a year earlier.

Sinton shipped 340,000st of material in the quarter, chief financial officer Theresa Wagler said on the call. That shipment rate indicates Sinton was running at 45pc capacity compared to its potential full run rate of 750,000st/quarter.

By Rye Druzin