Even though Steel Dynamics
The company foresees svelte scrap prices, insignificant import incursions, and persistent prices for its products. Such tranquility after a previously turbulent sea saw domestic competitor Nucor
I think the most important thing to note about SDI today is the company's proactive moves in the face of industry headwinds. Let's look at two major activities during the quarter, both of which are all about security of supply.
You may recall that soaring scrap steel costs slammed Nucor's earnings last quarter. Steel Dynamics got serious about securing scrap by laying out more than $1.3 billion for OmniSource, a private processor of ferrous and non-ferrous resources. Given scrap's subsequent slide, the move may seem hasty, but over the long haul it looks like a very prudent purchase. This move incidentally came right around the time that Sims Group mingled with Metal Management
Although talks with Cleveland-Cliffs
I've touched on the outlook for iron ore in my recent take on Posco's
Fool contributor Toby Shute doesn't have a position in any company mentioned. Posco is a Motley Fool Income Investor selection, and you can try the newsletter free for 30 days. The Motley Fool supports its disclosure policy with ample rebar.