Steel Dynamics, Inc. (NASDAQ:STLD) Q3 2023 Earnings Call Transcript

Mark Millett: Well, I think the biggest impact is the reduced level of speculation in the supply chain. In fact, it’s not a reduced level of speculation. People just don’t speculate anymore. So you see people that’s kind of hand in mouth. They tend to be ordering and buying on as needed basis that, that allows consistent shipping since July, mid-July, where we’ve seen very, very, very consistent order input rates and deliveries. Even as pricing came off the pricing this time and just as it was last year, last year with had a similar story with a very constructive outlook for 2023, which in all honesty came to fruition. The emotion last year was [indiscernible] us, we’re headed for a recession and we got high interest rates, inflation, et cetera, et cetera, et cetera.

There was no change, no structural change in underlying demand in the fourth quarter of last year. We’re seeing the same thing today. Demand is very, very solid across virtually every market sector that we have. Yet we see — saw that softness strike related emotional. People are starting to see lead time stretch out. They’re starting to see, or get a little worried. We’re booked out. And essentially our order book is closed for November. And given the interest, we see for December, we haven’t opened that book yet., We’re not so sure we will be able to satisfy the total appetite there. So it’s a positive market momentum going into 2024.

Unidentified Analyst: Thank you. I’m a shareholder.

Mark Millett: Thank you. Stay that way.

Operator: [Operator Instructions] That concludes our question-and-answer session. I’d like to turn the call back over to Mr. Millett for any closing remarks.

End of Q&A:

Mark Millett: Well, thank you, Holly. And for anyone that remains on the line, I would tell you I am blessed. SDI is blessed. Each and every one of us is blessed here because we have phenomenal loyal customers. Thank you for your support today and in the future. We have great service providers. We’ve got a phenomenal, phenomenal team of people that come to work, as I said earlier, inspired and positive each and every day. So thank you. Thank you for those that our shareholders and those on, I would hope that you consider us because we will create better shareholder value than most folks in the years ahead. So thank you very much. Have a great day. Bye-bye.

Operator: Once again, ladies and gentlemen, that concludes today’s call. Thank you for your participation and have a great and safe day.