Steel Dynamics anticipates reporting lower Q4 revenue.

Steel Dynamics, Inc. released earnings guidance for the fourth quarter of 2023, stating that diluted share prices would range from $2.60 to $2.64. In contrast, the company's earnings for the third quarter of 2023 were $3.47 per diluted share, while its earnings for the fourth quarter of the previous year were $3.61 per diluted share. According to a press release from the company, lower realised flat rolled steel pricing more than offset lower scrap costs, so fourth quarter 2023 profitability from the company's steel operations is expected to be lower than sequential third quarter results. This is based on steady shipments and metal spread contraction. According to SDI, steel order activity is still strong despite recent price increases and longer order lead times as we approach the first quarter of 2024. As demand from domestic steel mills declined due to maintenance outages, the company said that fourth quarter 2023 earnings from its metals recycling operations are expected to be comparable to sequential third quarter results, based on pricing related metal spread expansion more than offsetting lower volume. As realised selling values dropped and steel input costs increased during the quarter, the company's steel fabrication operations are expected to generate lower earnings in the fourth quarter of 2023 compared to the sequential third results. However, SDI noted that activity for steel joist and deck orders has improved in the fourth quarter compared to the sequential third quarter and that pricing has stabilised.