FORT WAYNE, INDIANA, February 24, 2003—Steel Dynamics, Inc. (NASDAQ: STLD)
has announced a $30 per ton price increase for its flat-roll sheet
products, following Nucor’s lead, effective with shipments in the second
quarter of 2003. The company only recently opened its order book for
second quarter shipments.
“We wanted to share our perspective regarding recent conflicting
reports on pricing and cost trends in the U.S. steel market,” said Keith
Busse, President and CEO of Steel Dynamics. “With an improving outlook
for demand, we believe a $30 per ton increase from first-quarter pricing
levels is appropriate when considering both market and cost factors. As
we have previously noted, domestic selling prices during the first
quarter of 2003 for sheet steels have weakened to well below last year’s
highest levels, particularly for hot-rolled bands. On a positive note,
global market demand for steel is increasing and is now impacting the
U.S. steel market. During the quarter, Steel Dynamics will ship about
70,000 tons of light-gauge, hot-rolled steel for export to China with
additional export sales expected in the second quarter. With an
improving economy, we expect domestic steel demand to increase in the
coming months.
“The recent increases in the cost of steel scrap are a factor in
announcing the second quarter price increase,” Busse said. “We have not
seen the marked increases in scrap prices that are being reported in the
press by others. Our first quarter increase in scrap cost will be
approximately $2 to $3 per ton compared to the fourth quarter’s average
cost, but we do anticipate an increase of up to $15 per ton in the
second quarter as compared to the first quarter’s average cost. Our
lower scrap costs are attributable to buying in more favorable Midwest
scrap markets, our buying practices, mix requirements, and other
factors. Our price increase seeks to recover the increased costs we
foresee in the second quarter and restore pricing of our flat-roll
steels to more normalized values.”
Forward Looking Statements:
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