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Steel Dynamics (NASDAQ:STLD) should restart its Sinton steel plant in Texas in the next few days following an unplanned outage, CEO Mark Millett said Thursday during the company’s earnings conference call.
The outages will cost the company 50K-70K short tonnes in shipments, said CFO Theresa Wagler, as reported by Argus.
Its 3M st/year flat-rolled steel mill was shut down on July 1 when problems with its caster shear equipment caused the company to idle its electric arc furnaces.
Millett said on the phone that Sinton should increase capacity to 80% by the end of the year.
Steel Dynamics (STLD) said its steel mills excluding Sinton operated at a 93% utilization rate in Q2, down from 95% in the prior year quarter and 94% in Q1.
According to Argus, Millett said Sinton achieved 52% overall in Q2 and produced 390K st of steel, down from 420K st in Q1.
Steel Dynamics (STLD) shares closed -2.9% in trading Thursday after reporting Q2 earnings of $4.81/share that beat estimates but fell sharply from $6.44 a year ago, and net sales fell 18% Y/Y to a lower than expected $5.08 billion.
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