Steel Dynamics in the Spotlight After a Record-Breaking Year in 2021

Despite pandemic restrictions and requirements in the workplace that prevented so many from going to work, Steel Dynamics broke multiple records in 2021. Not only were Steel prices at record breaking levels, hovering near $1,800/ton for Hot-Rolled, the Company still managed to double their sales revenue due to various factors including supply chain issues. Steel Dynamics is the #4 steel producer in the US with a $12B market cap.  For reference, the #1 steel producer is Nucor with a market cap of $32B.  As a result of the higher steel prices in 2021, Steel Dynamics has been able to multiply their operating income by almost 5x and net income by almost 6x from what it was in 2020. Steel Dynamics managed to hit another company record by producing just over 11 million tons of steel last year. 2021 was a fantastic year for the steel industry as a whole, and SDI was positioned well to profit. The fast-growing Steel producer was able to make all of this happen by ramping up Steel production coupled with the almost 250% increase in the price of Steel over 2020. Not only has Steel Dynamics benefitted massively from the increased production and price of Steel, but they have also benefitted from acquiring other steel companies throughout the year, expanding their Companies footprint, and increasing future steel making potential. This has put them in a prime spot for continued growth due to their ability to leverage.

View Source