Steel Dynamics forecasts growth in US steel consumption in 2024

American steelmaker Steel Dynamics (SDI) predicts growth in North American steel consumption in 2024. This is stated in the company’s report for Q1 2024.

According to Steel Dynamics Chairman and CEO Mark Millett, underlying steel demand was stable in January-March 2024. However, at the beginning of the first quarter, the company faced some order volatility as customer inventories remained very low and scrap prices declined month on month during the period.

He noted that in March, customer order volumes increased significantly, which contributed to higher prices and a solid portfolio, especially in the high-value-added flat products segment.

Steel Dynamics is confident that market conditions are in place for steel consumption in the US market to remain strong this year.

«We believe North American steel consumption will increase in 2024, and that demand for lower-carbon emission, US produced steel products coupled with lower imports will support steel pricing,» Millet said.

The company predicts that the automotive, non-residential construction, industrial and energy sectors will remain stable this year.

In addition, Millet said, further relocation of production facilities to the US mainland, as well as expectations of significant investments in fixed assets through government funding related to infrastructure, the Inflation Reduction Act and programs of the Department of Energy will ensure the competitiveness of the US steel industry.

In the first quarter of 2024, the company reduced steel shipments by 2.7% – to 3.25 million tons. In the period under review, the average external sales price of Steel Dynamics’ steelmaking facilities increased by $111/t – to $1201/t.

SDI’s net sales in the first quarter amounted to $4.69 billion compared to $4.89 billion in the same period in 2023. Quarterly net profit decreased to $584 million from $637.3 million in January-March last year.

As GMK Center reported earlier, American steelmakers Nucor and Cleveland-Cliffs reported a decline in demand for steel from some key customers. This led to a drop in sales and profits in the first quarter. Cliffs maintains a positive outlook for the second quarter.