Steel Dynamics, an American steelmaker, reports stronger steel prices and improved underlying demand in January-March this year. This is stated in the company’s report for the first quarter.
In the period under review, the company increased steel supplies by 6.9% year-on-year and 15.3% q/q – to almost 3.5 million tons.
As noted, the operating profit of the company’s steel mills in the first quarter of 2025 amounted to $230 million (+39% q/q) due to record shipments. This more than offset the narrowing of the spread on steel products, as the lag in contract prices for flat products in January-March did not reflect their recent increase, which will be realized in the coming months. In January-March, the average external selling price for Steel Dynamics’ steel products decreased by $13 to $998 per tonne.
Mark D. Millet, Chairman and CEO of Steel Dynamics, noted that underlying demand for steel improved in the first quarter as customer orders recovered. The number of unfilled orders also increased.
“Steel prices improved throughout the quarter from the lows seen in the second half of 2024 as trade actions have seen imports decline from recent highs. We should see the benefit from these higher steel prices in the coming months,” he said in particular.
Mark D. Millet expressed confidence that market conditions for domestic steel consumption in the United States will remain stable in 2025 and beyond. However, in the first quarter, the company saw some uncertainty from some customers due to recent trade measures.
“Overall, we believe demand for lower-carbon emission, U.S. produced steel products coupled with lower imports will support steel pricing and demand. The continued onshoring of manufacturing businesses, combined with the expectation of fixed asset investment to be derived from public and private funding should competitively position the domestic steel industry,” explained Steel Dynamics Chairman and CEO.
The company believes that recent preliminary rulings by the International Trade Commission on coated flat products will reduce the volume of unfair imports of these products to the United States. This will have a positive impact on Steel Dynamics, which is the largest non-automotive producer of these products in the United States.
As GMK Center reported earlier, in February 2025, US steelmakers reduced imports of rolled steel by 29.6% month-on-month – to 1.62 million tons. Total steel imports (rolled products and semi-finished products) fell by 27.2% m/m – to 2.23 million tons over the month.
