Fort Wayne, Indiana-based steelmaker Steel Dynamics Inc. (SDI) reported Monday that average external steel prices in Q2 2011 were up $57/nt to $947/nt from the Q1 2011 average of $890/nt. The significantly higher selling prices in Q2 were despite slower mill order books in the quarter. Keith Busse, SDI's Chairman and CEO said, "We experienced some volatility in order bookings for flat-rolled steel during the second quarter, while bookings for other steel operations remained steady or slightly improved." Structural steel shipments of 179,000 tons were up 11 percent from Q1 2011; however demand for structural steel remains weak, causing SDI's Structural and Rail Division to continue to operate well below its capacity.
Looking forward, Busse expects a bumpy second half of 2011. Busse commented that while although a continued slow improvement in the US economy is certainly possible, buying activity will likely remain uneven, and "service center inventory levels remain relatively low, and consumption by such sectors as automotive, transportation, energy, industrial, agricultural, and construction equipment remains steady to growing slightly."