Heavy rain in Texas delays the launch of the Synton plant

Planned ramp-up at Steel Dynamics Inc (SDI) plant in Sinton, TX is $ 1.9 billion. Flat products have been postponed due to severe flooding in the state

SDI detailed the delay in its second quarter income statement.

“Due to heavy torrential rains in Texas, actual steel production will be delayed and is now scheduled to begin in the middle of the fourth quarter of 2021,” says CEO Mark Millett.

Sinton's shipments are expected to be around 100,000 short tons in 2021 and rise to 2.2-2.4 million tons in 2022. When it is fully operational - with its accompanying four galvanizing lines worth $ 450-500 million - the plant will contribute $ 475-525 million to the construction. the company's annual profit before interest, taxes, depreciation and amortization.

One flat buyer cites the delay as a possible trigger for a new rise in hot rolled steel prices. Momentum appears to have stalled around the $ 1,800 mark, but many sources from buyers believe that the mills will rise to the list price of $ 2,000 a piece by the end of the year.

Millett ended his capex statement by touching on sustainability issues, although he did not directly link the disastrous Texas flood to the company's environmental goals.

“We recently announced targets to reduce greenhouse gas emissions and use renewable energies, including our steel mills to be carbon neutral by 2050,” he says, echoing commitments made by other steelmakers. in North America and world governments. "We start from a position of strength, but plan to do more."