This morning in metals news: Steel Dynamics Inc. released its second-quarter results, during which it tallied $4.5 billion in net sales; Nucor Corporation also released its Q2 results; and, lastly, miner Rio Tinto signed a renewable energy agreement in Madagascar.
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Steel Dynamics records Q2 net income of $702M
Steel Dynamics reported Q2 net income of $702 million, up from $75 million in Q2 2020.
“During the second quarter, steel demand remained robust as shipments and product pricing continued their positive momentum across our entire steel platform,” said Mark Millett, chairman and CEO. “Higher steel selling values drove significant metal spread expansion across the entire platform and were most prominent within the flat roll steel operations, as continued demand strength and historically low customer inventories persisted throughout the supply chain and supported prices. Domestic steel consumption was strong from the automotive, construction, and industrial sectors, while the energy sector continued to show signs of rebounding.”
The company recorded Q2 2021 net sales of $4.5 billion, up from $2.1 billion in Q2 2020.
Nucor first half net earnings reach $2.45B
Meanwhile, Nucor also reported robust Q2 and first-half numbers.
The steelmaker reported record Q2 net earnings of $1.51 billion, up from $942.4 million in Q1 2021 and $108.9 million in Q2 2020.
“All three operating segments are continuing to generate robust profitability as overall strong demand is supporting higher average selling prices,” the steelmaker said in its earnings report. “Earnings of the steel mills segment significantly improved in the second quarter of 2021 as compared to the first quarter of 2021, primarily driven by the significant increase in profitability of our sheet and plate mills. The steel products segment’s earnings in the second quarter of 2021 also increased from the first quarter of 2021. The steel mills segment and the steel products segment set new records for profitability in the second quarter of 2021.”
Nucor also predicted its Q3 2021 earnings would be record-setting, besting the Q2 2021 marks.
Rio Tinto signs renewable energy deal
Miner Rio Tinto has signed a renewable energy deal, the energy from which would power its QMM ilmenite mine in Fort Dauphin, Southern Madagascar.
“This project, which uses solar and wind energy, will significantly contribute towards Rio Tinto’s operations in Madagascar achieving its carbon neutral objective by 2023,” Rio Tinto said. “The project is part of a broader initiative to reduce the ilmenite mine’s environmental footprint which includes programmes that focus on emissions reduction, waste and water management, carbon sequestration, ecological restoration and reforestation.”
CrossBoundary Energy will build, own and operate the new plant over a 20-year period, Rio Tinto said.
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