FORT WAYNE, INDIANA, May 14, 2001— Steel Dynamics, Inc. (NASDAQ: STLD)
today announced a $20 per ton increase in the base prices of all of its
flat-rolled steel products, effective with customer deliveries on or
after July 1, 2001.
“The continued presence in the marketplace of large quantities of
unfairly traded imports has forced us to operate our hot mill in recent
weeks at 80% of its effective capacity,” said Keith Busse, president
and chief executive officer. “Consequently, our per-ton production costs
have increased. Additionally, the costs of electricity and natural gas
have risen sharply and we expect the softer economy to tighten the
supply of available scrap and possibly increase its price, short- term.
“Furthermore, we expect the present national energy crisis to impact
us significantly this summer,” Busse said, “Frequent, sudden and
unexpected power curtailments can considerably constrain our ability to
serve our customers and significantly increase our overall costs of
production. Considering the interests of our shareholders and creditors,
we have chosen to increase our prices to recover these additional
costs.”
Regarding unfairly traded imported steel, preliminary injury findings
were recently announced by the International Trade Commission
concerning illegally dumped imports from Argentina, China, India,
Indonesia, Kazakhstan, the Netherlands, Romania, South Africa, Taiwan,
Thailand, and the Ukraine. The company believes a Section 201 trade
investigation by the Bush Administration is urgently needed and is fully
justified by the facts. Mr. Busse commented, “Senator Jay Rockefeller
(D-W.Va.) said it best at the Steel Manufacturers Association annual
conference last Wednesday evening in Washington: ”˜We need a 201, no
matter who initiates it.’”
Steel Dynamics, Inc., based in Fort Wayne, Indiana, produces a broad
range of flat-rolled steel products, including light-gauge,
micro-alloyed and high-strength steels. In 2000, its fifth year of
operation, the company produced over two-million tons of hot-band steel
at its steel mini-mill located at Butler, Indiana. In addition to hot
band, the company produces hot-rolled galvanized, cold-rolled, and
cold-rolled galvanized sheet steels at its Butler facility.
Forward Looking Statements:
|