US flat rolled minimill producer Steel Dynamics Inc (SDI) announced a second quarter net loss totaling $16 million, compared to a net loss of $88 million in the first quarter of 2009, and a profit of $210 million in the second quarter of 2008.
Net sales for SDI, the sixth-largest steelmaker in the United States, in the second quarter of 2009 totaled $792 million, three percent lower than net sales of $815 million in the first quarter 2009. Compared to the second quarter of 2008, net sales were down 67 percent due to “much lower volume and lower selling values for steel and recycled metals.” Steel shipments for the second quarter were 886,000 net tons, 45 percent below second quarter 2008 shipments of 1.6 million nt. SDI's average steel selling price for the second quarter of 2009 declined $126 per net ton, to $594 from $720 per nt in the first quarter. Average scrap cost per net ton charged decreased $79 compared to the first quarter.
In its metals recycling segment, OmniSource, ferrous metals shipments were 840,000 nt, down 44 percent from the second quarter of 2008.
"During the second quarter, we experienced a slight improvement in business conditions. Order entry picked up at the Flat Roll Division and at The Techs in early May and has continued to be strong, resulting in improved backlogs, “said Keith Busse, chairman and CEO. However, Mr. Busse then cautioned, “It remains unclear whether this increase in business activity will persist, or will be short-lived, as we continue to see conflicting signs in the economy. While our flat roll steel businesses are currently operating near capacity, we have seen only marginal improvement in long products. We have yet to see signs of improvement in the construction markets.”
Mr. Busse went on to say that based on the company's assumptions that flat rolled demand will remain steady in the near term, recycled metals will continue to recover, and demand for long products will remain sluggish, it expects to return to a slight profit in the third quarter.