In the second quarter, the company shipped 3.1 million tons of steel and recorded $6.2 billion in net sales. This follows lower profitability in Q1.

Steel Dynamics Inc., an electric arc furnace steelmaker headquartered in Fort Wayne, Indiana, has reported financial results for the second quarter, completed June 30. SDI says it had net sales of $6.2 billion and record net income of $1.2 billion, or $6.44 per diluted share, in the quarter. Excluding the impact from nearly $77 million, or 29 cents per diluted share, in costs associated with the continued startup of its Sinton, Texas, flat-roll steel mill growth investment, SDI says its second-quarter 2022 adjusted net income was $1.3 billion, or $6.73 per diluted share.

The company’s sequential earnings totaled $5.71 per diluted share, while adjusted earnings were $6.02 per diluted share excluding costs of 31 cents per diluted share (net of capitalized interest) associated with construction and startup of the Sinton mill. While year-over-year quarterly earnings were $3.32 per diluted share and adjusted earnings were $3.40 per diluted share, excluding costs of 8 cents per diluted share (net of capitalized interest) for the Sinton mill.

“The team delivered another strong performance, achieving record quarterly operating and financial performance, including record sales, operating income, cash flow from operations and adjusted EBITDA [earnings before interest, taxes, depreciation and amortization],” Mark D. Millett, chairman, president, and chief executive officer of SDI says. “Our second quarter 2022 operating income was $1.6 billion, with adjusted EBITDA of $1.7 billion. This tremendous accomplishment displays the power of our highly diversified, value-added, circular manufacturing model—as the strength in our steel fabrication operations more than offset lower earnings in our flat-roll steel business, as realized flat-roll steel selling values declined during the quarter. Despite softening hot-roll coil steel pricing, we achieved record quarterly steel shipments of 3.1 million tons based on solid steel demand, led by the automotive, construction and industrial sectors, with energy continuing to improve.”

SDI says its second-quarter 2022 operating income for its steel operations remained historically strong at $1.1 billion. The incremental decline in earnings resulted from metal spread compression within the company’s flat-roll steel operations. Demand for its long product steel also remains strong, supporting increased average realized pricing and shipments. The average external product selling price for SDI’s steel operations decreased $22 sequentially to $1,539 per ton, while the average ferrous scrap cost per ton melted at SDI’s steel mills increased $64 sequentially to $538 per ton.

Second-quarter operating income from the company’s metals recycling operations, which are largely comprised of its OmniSource subsidiary, increased to $58 million. That figure was $48 million in the first quarter of this year. SDI attributes the growth to strong demand supporting increased pricing and related metal spread. Solid demand for ferrous scrap resulted in a 7 percent increase in second-quarter 2022 shipments relative to the first quarter of the year.

The company’s steel fabrication operations reported record operating income of $599 million in the second quarter, substantially higher than its sequential first quarter results. SDI says this is because of significantly higher selling values and strong shipments that more than offset marginally higher steel input costs. The company describes the nonresidential construction sector as strong, resulting in a near-record order backlog and higher forward pricing for SDI’s steel fabrication platform. The company says it anticipates this momentum to continue into 2023 based on these dynamics.

For the six months ended June 30, net income was $2.3 billion, or $12.14 per diluted share, with net sales of $11.8 billion. In the first half of last year, SDI’s income was $1.1 billion, or $5.35 per diluted share, with net sales of $8 billion.

First-half 2022 net sales increased 47 percent, and operating income doubled to $3.1 billion when compared with the same period in 2021. Higher earnings were driven by metal spread expansion within the company’s steel fabrication business and steel operations, as increased product pricing outpaced higher raw material costs, SDI says. The steel fabrication platform achieved record first-half 2022 operating income of $1.1 billion, materially higher than the $38 million recorded in the first half of 2021. First-half 2022 operating income for its steel operations was $2.3 billion, an increase of $615 million compared with prior-year results. The average first half 2022 external selling price for its steel operations increased $380 to $1,549 per ton year over year, while the average ferrous scrap cost per ton melted at the company’s steel mills increased $101 to $507 per ton.

“Customer order entry activity continues to be healthy across all of our businesses, conflicting with the more pessimistic emotion in the marketplace,” Millett says. “Despite softening flat-roll steel pricing, our steel order activity remains solid from the automotive, construction and industrial sectors, with energy continuing to improve. Our steel fabrication operations order backlog remains at near-record volumes and forward-pricing levels. This combined with continued healthy order activity and broad customer optimism supports strong overall demand dynamics for the construction industry.

Millett says Sinton’s startup has been “challenged with unexpected power and equipment issues that have impacted their operating time in July,” though he adds that the plan has achieved run rates of 80 percent through the hot side.

Earlier this year, SDI announced it was partnering with Aymium, an Oakdale, Minnesota-based producer of renewable biocarbon products based. SDI owns 55 percent of the joint venture, with Aymium owning the remaining 45 percent. The entity will operate under the name SDI Biocarbon Solutions LLC. Initial plans for the joint venture include construction and operation of a biocarbon production facility to supply SDI's electric arc furnace steel mills with a renewable alternative to fossil fuel carbon using Aymium's patented technology.

“We are excited about our recent partnership with Aymium,” Millett says. “We believe this strategic joint venture will cost-effectively reduce our greenhouse gas emissions, which are already materially lower than our global steel competitors. We also believe Aymium’s process can provide a renewable carbon alternative to fossil fuel for Iron Dynamics, our proprietary ironmaking operations. We have successfully trialed Aymium’s biocarbon product in our steel operations, and conservatively estimate this first facility will reduce our Scope 1 steelmaking greenhouse gas emission intensity between 20 and 25 percent, with potential upside through the use of the facility’s biogas.”

Millett also mentions the company’s recently announced plans to add a 650,000-metric-ton recycled aluminum flat-roll mill and two supporting satellite recycled aluminum slab centers. The company will invest an estimated $2.2 billion in the three facilities, with commercial production planned to begin in the first quarter of 2025.

“Our recently announced planned investment in a new state-of-the-art low-carbon aluminum flat-rolled mill continues our strategic growth, is aligned with our core steelmaking and recycling platforms, benefits many of our existing customers and provides for future value creation. Our customers and our people are incredibly excited for this growth opportunity.”

Chemicals firm will work with London-based Mura Technology on potentially 600,000 metric tons of hydrothermal recycling capacity globally.

The Horgen, Switzerland, office of United States-based Dow has announced its intention to use its partnership with London-based Mura Technology to “construct multiple world-scale 120,000-metric-ton-capacity advanced recycling facilities in the U.S. and Europe.”

If the two companies follow through on the plan, it will create as much as 600,000 metric tons of annual nonmechanical recycling capacity, they say.

Mura says its hydrothermal recycling process, HydroPRS, “breaks down plastics using water in the form of supercritical steam (water at elevated pressure and temperature). The steam acts like molecular scissors, cutting longer-chain hydrocarbon bonds in plastics to produce the valuable chemicals and oils from which the plastic was originally made–in as little as 25 minutes.”

The process, according to Dow and Mura, can recycle difficult-to-sort items such as films, pots, tubs and trays. “The process is designed to work alongside conventional recycling and wider initiatives to reduce and reuse plastic such as mechanical recycling (where plastic waste is shredded and re-formed into different plastic products), which remains crucial to Dow’s recycling strategy,” the company says.

At the end of its process, Mura says, the oils produced are “equivalent to the original fossil products [and] are then used to produce new, virgin-grade plastic with no limit to the number of times the same material can be processed, creating a true circular economy for plastic [scrap].” Potential end markets include food-contact packaging, Dow says.

The global chemicals and polymers firm says it role in the partnership is as “a key off-taker of the circular feed that Mura produces.” The circular process “reduces reliance on fossil-based feedstocks and will enable Dow to produce a recycled plastic feedstock for the development of new, virgin-grade plastics which are in high demand from global brands,” Dow says.

The first plant using Mura’s HydroPRS process is being built in Teesside, United Kingdom, and is expected to be operational in 2023 with a 20,000 metric tons per year production line. The output will “supply Dow with a 100 percent recycled feedstock,” the companies say.

The extended partnership is set to considerably increase this supply, playing a significant role in Dow and Mura’s planned global rollout of as much as 600,000 metric tons of hydrothermal recycling capacity by 2030.

The planned capital investments by Mura, along with Dow’s off-take agreements, represent both companies’ largest commitment to date to advance and scale global non-mechanical recycling capabilities, the companies say.

“The strengthening of Dow and Mura’s partnership is another example of how Dow is working to build momentum around breakthrough advanced recycling technologies,” says Marc van den Biggelaar, advanced recycling director for Dow. “Dow is committed to accelerating a circular economy for plastics and our expanded partnership with Mura marks a significant step on this journey.”

CEO of Mura Technology Dr. Steve Mahon says, “Mura’s technology is designed to champion a global circular plastics economy, and our partnership with Dow is a key enabler to bringing HydroPRS to every corner of the globe. This next step in our partnership and the resources provided by Dow will allow us to finance and dramatically increase recycling capacity and enable circular plastics to enter global supply chains at scale.”

Dow says it remains on track with mechanical recycling-related projects and has announced two additional ones recently: an investment to build what it calls “the single largest single hybrid recycling site in France, managed by Valoregen, that will secure a source of postconsumer resins (PCR) for Dow” and a letter of intent with Atlanta-based Nexus Circular to create what it calls a circular ecosystem in Dallas for “previously non-recycled” plastic, which Dow says build on its previous Hefty EnergyBag collaboration with Nexus and Reynolds Consumer Products.”

Steel producer and scrap yard operator has netted $4.66 billion in the first half of 2022.

Charlotte, North Carolina-based steelmaker and scrap yard operator Nucor Corp. has announced what it calls record quarterly consolidated net earnings of $2.56 billion for this year’s second quarter. It follows earnings of $2.10 billion garnered in the first quarter of 2022.

In the first six months of 2022, Nucor has recorded net earnings of $4.66 billion, or $17.30 per diluted share. That compares with net earnings of $2.45 billion, or $8.13 per diluted share, in the first half of 2021.

“Nucor’s second-quarter earnings of $9.67 per diluted share and first-half earnings of $17.30 per diluted share both represent new records,” says Leon Topalian, Nucor president and CEO. “Nucor’s differentiated business model is yielding exceptional results.”

The scrap-fed electric arc furnace (EAF) steelmaker, which also owns the David J. Joseph (DJJ) scrap processing and trading firm, says its net sales increased 12 percent to $11.79 billion in the second quarter of 2022, representing a 34 percent increase compared with $8.79 billion in the second quarter of last year.

The average scrap and scrap substitute cost per gross ton of used in this year’s second quarter was $534, an 8 percent increase compared with $495 in the first quarter of 2022. The $534 figure also represents a 17 percent increase compared with one year ago, when the cost was $457 per ton.

The company’s Raw Materials business unit, which includes DJJ, earned $263.6 million for Nucor in the first half of this year. That is a 119 percent jump from the $120.1 million earned in the first half of 2021.

Overall operating rates at the company’s EAF steel mills increased to 85 percent in the second quarter of 2022, which compares with a 77 percent rate in the first quarter. In the first half of this year, Nucor’s mills have operated at 81 percent of capacity, which compares with a 96 percent rate in the first six months of 2021.

Nucor says demand remains “stable and resilient” for steel in its major markets and that “customer inventory levels appear right-sized relative to economic conditions.”

The company adds, however, “We expect a decrease from the record-setting second quarter, [but] we expect another strong quarter of profitability in the third quarter of 2022. We believe that 2022 will be the most profitable year in Nucor’s history.”

Nucor continues, “We expect the steel mills segment earnings to be sequentially lower in the third quarter of 2022 due to lower expected shipment volumes and average selling prices, particularly at our sheet and plate mills. Raw materials segment earnings are expected to improve in the third quarter of 2022 due to higher realized pricing at our direct reduced iron (DRI) facilities.”

The company is offering the service to help reduce powered equipment loss and streamline fleet management.

Lytx Inc., a San Diego-based video telematics solutions provider, has launched the Lytx Asset Tracking Service to augment its fleet management solutions. The company also announced several new maintenance enhancements for its Fleet Tracking Service, which are slated to be released later this year.   

Available now in the U.S. and Canada, the Asset Tracking Service can be used by fleet managers looking for a streamlined approach to locating and managing their powered equipment. The Lytx Asset Tracking Service is designed for fleet managers who need timely information about their powered equipment. The service consists of the Lytx Asset Tracker hardware and a monthly subscription per unit that grants customers access to the customizable software via a Lytx account.  

The company says asset tracking is essential for customers with mixed fleets since the location of assets can change quickly. Without a means of locating and tracking equipment, companies can be exposed to theft and loss of equipment.   

By installing a Lytx Asset Tracker device into a powered asset and using the tracking software, companies can obtain data like the asset serial number, estimated location, last connected time and the last movement date. Customized real-time alerts provide additional visibility including how long the equipment has been dormant, the current battery level and when an asset enters or exits a defined area.  

Paired with Lytx’s Fleet Tracking Service, asset tracking can provide fleet managers with the peace of mind of knowing where both their vehicles and essential powered equipment are always. This full-view visibility gives fleet managers and business owners the ability to track history and travel patterns to determine vehicle and equipment usage and whether they need to buy more equipment or offload some.  

Lytx says its Fleet Tracking Service provides a seamless solution for fleet managers who need to regularly access fleet status, manage driver efficiency and keep their vehicles running in top condition.  

Lytx’s GPS fleet tracking software allows companies to manage and monitor their vehicles and assets in the field to respond faster, complete more jobs, decrease theft and improve customer satisfaction. With an installed GPS-enabled device, fleet managers can gain visibility into arrival, idle and departure times, leading to faster decision-making and reduced fuel costs.  

Lytx Fleet Tracking Service can be customized to suit all fleet needs, including setting defined areas called geofences, configuring interactive maps and analyzing specific trends and performance. Video-enabled devices can enhance asset tracking by providing video evidence to help protect drivers and reduce claims costs in the event of a collision and support investigations of damage incidents or missing equipment.  

New maintenance enhancements are in development and will be added to Lytx’s Fleet Tracking Service later this year. Those new capabilities include:  

diagnostic trouble codes (DTC) support for heavy-duty vehicles using Lytx DTC Insights, which can identify potential vehicle malfunctions and help managers resolve issues before they become more dangerous and costly,  

preventative maintenance by calendar that allows fleet managers to proactively configure and schedule vehicle service intervals with due dates set by calendar day, helping with performing time-based vehicle maintenance, resulting in fewer vehicle failures; and

preventative maintenance by engine hours that enables managers to track and schedule maintenance by engine hours, which can help measure the wear and tear on vehicles.   

The manufacturer explains the differences between different sorting methods and the technology that goes into sorting and identifying different recyclables.

Robotic technology is rapidly evolving in the recycling industry, especially in the area of optical sorting equipment. Drawing from deep datasets, optical sorters using different ejection methods process material fractions more efficiently and with higher purity rates than at any other time.

But what exactly constitutes a robot in the recycling industry and how do these machines leverage the deep learning subset of artificial intelligence (AI) to benefit today’s recycling facilities?

“Recycling Robots, Take Two,” the latest eBook from Norway-based  Tomra Recycling, a global leader in sensor-based sorting, explains the similarities and differences between optical sorters with valve block and robotic arm ejectors and details how, when implemented as part of the holistic system design, both can improve plant sorting performance.

The eBook describes what is at the heart of AI, how everyone experiences it every day and opens the reader’s mind to recognize the term “robot sorter” is not just a machine with sorting arms.

Readers also learn the four critical components shared by all-optical sorters, what different sorting technologies are available for the recycler’s toolbox and the software’s role in sorting. Processing software, in particular, is critical to the sorting process, and it should be developed specifically for the type of sorting technology employed so the recycler can maximize material recovery.

The eBook concludes with the message that, while not new to the recycling industry, the use of AI and deep datasets is expanding, resulting in faster processing speeds, higher recovery rates of the most complex material fractions and maximum circularity by bringing more high-quality recyclates into the loop. Together, optical sorters–both with valve block as well as robotic arm ejectors–allow the workforce to be used more efficiently to lower overall operating costs for the recycler. To be most effective, however, these sorters must be positioned in the line as part of a holistic approach to the automated circuit.

Click here to download a copy of the ebook.