Tristan Gresser: Yes. Hi. Thanks for taking my questions. Maybe I’ll start off with a follow-up regarding the supply and demand outlook for rebar consumption in U.S. If you look at the medium-term picture there, there’s been a number of projects announced domestically maybe around 3 million tons of new rebar capacity potentially ramping up by 2026. You flagged the 1.5 million ton rebar impact from the Infrastructure Bill. But could there be a scenario when this is not enough. And just wanted to have your thoughts on how do you feel that the medium-term balance there for the U.S. rebar market? Are you really worried that there’s maybe too much capacity being built?
Barbara Smith: Yes. Thank you, Tristan. I don’t know that our numbers would be quite as high as three because I think some of that has already been absorbed in the market. If you go back to the Oklahoma investment that we made, there was a very heightened concern at the time that we were introducing new capacity that couldn’t be absorbed by the market, and it was fully absorbed. And as far as I can say and see and I think what you observed was it was not disruptive to the market. I acknowledge Nucor has made some investments. And certainly, we have Arizona, which really is €“ it’s an offset to the difficult decision that we made during COVID to shutter the California facility. And so I’m not overly concerned at this time. I think what I’ve seen and what our numbers would tell us is that it’s €“ you’re not going to see a significant overbuilding of capacity, unlike maybe some other products where there’s been substantially more new capacity brought online and not necessarily the same demand increase for that capacity, but we always monitor it.
And I think the other point I would make is many mill or micro mill capacity is very flexible and can adjust when demand changes. We have a very low fixed cost portion to that model, unlike blast furnace capacity, which does not flex as easily as mini mill or micro mill capacity.
Tristan Gresser: All right. That’s very clear and helpful. Thank you for that. My second question is more on the spot market development. Do you think the structural adjustment you’ve seen in the U.S. rebar market Pre Infrastructure Bill, the one you mentioned in your presentation, are currently being fully reflected in spot rebar metal spread that are premium to flat products, meaning that we should now see a return to a more normal cost price relationship moving forward for U.S. rebar prices and cost compared to what we’ve seen over the past two years? So just wanted to have your thoughts on the current developments? Thank you.
Barbara Smith: Yes. Thank you, Tristan. It’s a complicated question. There’s many factors. But I think the consolidation of the long side of the market, particularly the rebar space, has provided a lot of stability. I do think that there is a structural shift upward in long, medium-term margins through a cycle. I would also highlight that you really should look at and compare metal margin between long products and flat products. Long products have had a much more stable margin structure over €“ it fluctuates, but over a much tighter band than the peak to trough that you tend to see for flat plate products. And I don’t see anything that would suggest that, that stability will be disrupted. So we have known for a long period of time that even before consolidation, rebar and long products, metal margin was much more stable than what you see on the flat side of the equation.
