Steel Dynamics Inc (STLD) 2021 Q3 法說會逐字稿

Good day, and welcome to the Steel Dynamics Third Quarter 2021 Earnings Conference Call. (Operator Instructions) Please be advised this call is being recorded today, October 19, 2021, and your participation implies consent to our recording this call. If you do not agree to these terms, please disconnect. At this time, I would like to turn the conference over to David Lipschitz, Director, Investor Relations. Please go ahead.

美好的一天，歡迎參加 Steel Dynamics 2021 年第三季財報電話會議。（操作員說明）請注意，本次通話將於今天（2021 年 10 月 19 日）進行錄音，您的參與即表示同意我們對本次通話進行錄音。如果您不同意這些條款，請中斷連線。現在，我想將會議交給投資者關係總監 David Lipschitz。請繼續。

Thank you, Kate. Good morning, and welcome to Steel Dynamics' Third Quarter 2021 Earnings Conference Call. As a reminder, today's call is being recorded and will be available on our website for replay later today. Leading today's call are Mark Millett, Chairman and Chief Executive Officer of Steel Dynamics; and Theresa Wagler, Executive Vice President and Chief Financial Officer. The other members of our senior leadership team are joining us on the call individually.

謝謝你，凱特。早上好，歡迎參加 Steel Dynamics 2021 年第三季財報電話會議。謹此提醒，今天的通話正在錄音中，並將在今天晚些時候在我們的網站上重播。今天的電話會議由 Steel Dynamics 董事長兼執行長 Mark Millett 主持。執行副總裁兼財務長Theresa Wagler。我們高級領導團隊的其他成員將單獨加入我們的電話會議。

Some of today's statements, which speak only as of this date may be forward-looking and predictive, typically preceded by believe, expect, anticipate or words of similar meaning. They are intended to be protected by the Private Securities Litigation Reform Act of 1995 should actual results turn out differently.

今天的一些陳述僅代表當前情況，可能具有前瞻性和預測性，通常前面帶有相信、期望、預期或類似含義的詞語。如果實際結果有所不同，它們將受到 1995 年《私人證券訴訟改革法案》的保護。

Such statements involve risks and uncertainties related to our steel, metals recycling and fabrication businesses as well as to general business and economic conditions. Examples of these are described in the related press release as well as in our annually filed SEC Form 10-K under the headings Forward-looking Statements and Risk Factors found on the Internet at www.sec.gov and if applicable, in any later SEC Form 10-Q.

此類陳述涉及與我們的鋼鐵、金屬回收和製造業務以及一般業務和經濟狀況相關的風險和不確定性。這些範例在相關新聞稿以及我們每年提交的SEC 表格10-K 中的前瞻性陳述和風險因素標題下進行了描述，可在互聯網www.sec.gov 上找到，如果適用，還可在任何後續SEC中找到表格 10-Q。

You will also find any referenced non-GAAP financial measures reconciled to the mostly -- directly comparable GAAP measures in the press release issued yesterday and titled Steel Dynamics Reports Record third quarter 2021 results. And now I'm pleased to turn it over the call to Mark.

您也可以在昨天發布的標題為「Steel Dynamics 報告創紀錄的 2021 年第三季業績」的新聞稿中找到任何引用的非 GAAP 財務指標，這些指標與大多數可直接比較的 GAAP 指標相一致。現在我很高興將電話轉給馬克。

Good morning, everybody.

大家早安。

This is the operator, Mark, are you still with us?

我是接線員，馬克，你還在我們這裡嗎？

I'm sorry. I'm sorry. Let me repeat. I was on mute. They were keeping me quiet. But no, seriously, good morning, everybody. Welcome to our third quarter '21 earnings call. We appreciate your time today. And as I was saying, the entire Steel Dynamics team delivered another exceptional financial and operating performance, including record sales, operating income, cash flow and adjusted EBITDA.

對不起。對不起。讓我重複一遍。我當時處於靜音狀態。他們讓我保持安靜。但不，說真的，大家早安。歡迎參加我們的 21 年第三季財報電話會議。我們非常感謝您今天抽出時間。正如我所說，整個 Steel Dynamics 團隊再次取得了卓越的財務和營運業績，包括創紀錄的銷售額、營業收入、現金流和調整後的 EBITDA。

Aided by the market tailwind, it was a tremendous accomplishment driven by the commitment and passion of our teams executing on our long-term strategies that continue to drive higher through-cycle earnings. The team is truly delivering exceptional results, and I'm proud to be among them.

在市場順風的幫助下，我們團隊執行長期策略的承諾和熱情推動了這一巨大成就，這些策略繼續推動更高的整個週期收益。團隊確實取得了卓越的成果，我很自豪能成為其中之一。

Due to the steadfast commitment of our teams to one another, our families and our customers, we continue to operate safely amidst COVID. The health and welfare of our teams is paramount, and I thank each of them for being their brother's and sister's keeper.

由於我們的團隊對彼此、家人和客戶的堅定承諾，我們在新冠疫情期間繼續安全運作。我們團隊的健康和福祉至關重要，我感謝他們每個人成為兄弟姐妹的守護者。

Record financial results are no important if our teams do not remain safe. Our safety performance continues to be significantly better than industry averages, but our intent will always be to have 0 incidents. Since our founding over 25 years ago, Steel Dynamics has been intentional in managing our resources sustainably for the benefit of our teams, communities and our environment. We are steel industry leader in sustainability, operating exclusively with electric-arc-furnace technology with a differentiated circular manufacturing business model.

如果我們的團隊無法保持安全，創紀錄的財務表現並不重要。我們的安全績效持續明顯優於行業平均水平，但我們的目標始終是零事故。自 25 年前成立以來，Steel Dynamics 一直致力於永續管理我們的資源，以造福我們的團隊、社區和環境。我們是鋼鐵業可持續發展的領導者，專門採用電弧爐技術和差異化的循環製造業務模式進行營運。

As our journey continues, we're committed to the reduction of our climate footprint, including a practical and achievable goal for our steel mills to be carbon neutral by 2050. We're starting from a position of strength, yet plan to do more. We're competitively positioned and focused towards generating long-term sustainable growth for our stakeholders. But before I continue, Theresa will share some insights into our recent performance. Theresa?

隨著旅程的繼續，我們致力於減少我們的氣候足跡，包括我們的鋼廠在 2050 年實現碳中和的實際且可實現的目標。我們的起點非常強大，但還計劃做得更多。我們處於競爭地位並專注於為我們的利害關係人創造長期可持續成長。但在我繼續之前，特蕾莎將分享一些對我們最近表現的見解。有一個？

Thank you, Mark. Good morning, everyone. I'd like to add my sincere appreciation and congratulations to the team. We continue to achieve new milestones throughout the business, attained record third quarter performance with record revenues of $5.1 billion derived from strong product pricing and volumes across all of our operating platforms. Record quarterly operating income of $1.3 billion and net income of $991 million or $4.85 per diluted share and record cash flow from operations of $631 million and adjusted EBITDA of over $1.4 billion, a truly extraordinary performance.

謝謝你，馬克。大家，早安。我謹向團隊致上誠摯的謝意和祝賀。我們的整個業務繼續實現新的里程碑，第三季業績創下歷史新高，營收達到創紀錄的 51 億美元，這得益於我們所有營運平台強勁的產品定價和銷售。創紀錄的季度營業收入為13 億美元，淨利潤為9.91 億美元，即稀釋後每股收益4.85 美元，營運現金流為6.31 億美元，調整後EBITDA 超過14 億美元，這是一個真正非凡的業績。

Our third quarter 2021 results included costs of $30 million or $0.11 per diluted share associated with the continued construction of our Sinton Texas Flat Roll Steel Mill. Excluding these costs, third quarter 2021 adjusted net income was $1 billion or $4.96 per diluted share, above our guidance due to stronger-than-forecast September steel and fabrication earnings. Our third quarter 2021 revenues of $5.1 billion were 14% higher than sequential record second quarter results with improvements in all of our operating platforms, but most significantly from our steel operations based on increased flat-rolled steel selling values and strong shipments.

我們 2021 年第三季的業績包括與繼續建造 Sinton Texas Flat Roll 鋼廠相關的成本 3,000 萬美元或稀釋後每股 0.11 美元。排除這些成本，2021 年第三季調整後淨利為 10 億美元，即每股攤薄收益 4.96 美元，高於我們的預期，因為 9 月份鋼鐵和製造業務的盈利強於預期。我們的2021 年第三季營收為51 億美元，比第二季創紀錄的業績高出14%，這得益於我們所有營運平台的改進，但最重要的是我們的鋼鐵業務基於扁鋼銷售價值的增加和強勁的出貨量。

Our third quarter 2021 operating income of $1.3 billion was 38% higher than second quarter results also driven by increased flat-rolled steel pricing and continued strong demand, more than offsetting increased raw material ferrous scrap costs. As we discuss our business this morning, we continue to see positive industry fundamentals for the fourth quarter and 2022, and we are focused toward our continued transformational steel growth initiatives.

我們的 2021 年第三季營業收入為 13 億美元，比第二季業績高出 38%，這也是由於扁鋼價格上漲和持續強勁的需求推動的，足以抵消原材料黑色廢鋼成本的增加。當我們今天早上討論我們的業務時，我們繼續看到第四季度和 2022 年積極的行業基本面，並且我們專注於持續的鋼鐵轉型增長計劃。

Our steel operations generated record operating income of $1.4 billion in the third quarter, 33% greater than second quarter sequential earnings as flat-rolled steel selling values strengthened and our lagging contract business represented over 80% of our flat roll volume in the quarter. We also saw expanded margins throughout our long product steel operations due to improved pricing.

我們的鋼鐵業務在第三季度創造了創紀錄的營業收入14 億美元，比第二季度的連續盈利高出33%，因為扁鋼銷售價值走強，而且我們落後的合約業務佔本季度扁鋼銷量的80% 以上。由於定價的改善，我們的長材鋼鐵業務的利潤率也有所擴大。

We achieved strong quarterly steel shipments of 2.8 million tons with our steel mills operating at 93% of their capability. We have additional volume opportunity based on our existing annual steel shipping capacity of over 13 million tons. And when our new Texas steel mill is fully online, we will have over 16 million tons available.

我們的季度鋼材出貨量強勁，達 280 萬噸，鋼廠開工率為 93%。基於我們現有超過 1300 萬噸的年鋼鐵運輸能力，我們還有額外的銷售機會。當我們位於德克薩斯州的新鋼廠全面投產時，我們將擁有超過 1600 萬噸的可用鋼量。

Our metals recycling business had operating income in the quarter of $47 million, aligned with strong second quarter performance as higher average pricing resulted in improved ferrous margins. The team continues to effectively lever the strength of our circular manufacturing operating model, benefiting both our steel and metals recycling operations by providing higher quality scrap, which improves furnace efficiency and reducing company-wide working capital requirements.

我們的金屬回收業務本季的營業收入為 4,700 萬美元，與第二季的強勁表現一致，因為平均定價較高導致黑色金屬利潤率提高。團隊繼續有效地利用我們循環製造營運模式的優勢，透過提供更高品質的廢料，提高熔爐效率並降低全公司的營運資金需求，使我們的鋼鐵和金屬回收業務受益。

Our steel fabrication operations once again achieved record shipments and significantly expanded margins in the quarter as realized selling values more than offset continued higher steel input costs. Operating income was a record $89 million, more than triple our second quarter earnings of $28 million.

我們的鋼鐵製造業務再次實現創紀錄的出貨量，並在本季大幅擴大利潤，因為實現的銷售價值足以抵消持續上漲的鋼鐵投入成本。營業收入達到創紀錄的 8,900 萬美元，是第二季獲利 2,800 萬美元的三倍多。

Steel joist and deck demand remains very strong as evidenced by continued robust order activity, resulting in another record order backlog at the end of the quarter. Based on our backlog and customer sentiment, we expect steel fabrication earnings to continue to increase even further in the fourth quarter and into 2022.

鋼托樑和甲板的需求仍然非常強勁，訂單活動持續強勁就證明了這一點，導致本季末積壓訂單再次創紀錄。根據我們的積壓訂單和客戶情緒，我們預計鋼鐵製造收入將在第四季和 2022 年繼續進一步成長。

Our cash generation continues to be strong based on our differentiated business model and highly variable cost structure. At the end of the third quarter, we had liquidity of $2.3 billion. During the third quarter of 2021, we generated record cash flow from operations of $631 million and $1.5 billion during the first 9 months of the year, also a record.

基於我們差異化的業務模式和高度變動的成本結構，我們的現金產生能力持續強勁。截至第三季末，我們的流動資金為 23 億美元。2021 年第三季度，我們的營運現金流達到創紀錄的 6.31 億美元，今年前 9 個月的現金流達到創紀錄的 15 億美元。

Working capital has grown $1.2 billion in the first 9 months of 2021 due to higher selling values, resulting in increased customer account and inventory values. During the first 9 months of 2021, we have invested $802 million in capital investments, of which $666 million was invested in our new Texas flat-rolled steel mill. For the fourth quarter, we estimate capital investments will be roughly $220 million. Based on early forecast, capital investments for the full year 2022 could be in the range of $700 million inclusive of a significant portion of investment for the 4 new flat-rolled coating lines to be placed in Sinton and Heartland.

由於銷售價值增加，導致客戶帳戶和庫存價值增加，2021 年前 9 個月營運資本增加了 12 億美元。2021 年前 9 個月，我們已投入 8.02 億美元的資本投資，其中 6.66 億美元投資於我們新的德州扁鋼廠。我們預計第四季的資本投資約為 2.2 億美元。根據早期預測，2022 年全年的資本投資可能在 7 億美元範圍內，其中包括將在 Sinton 和 Heartland 建造 4 條新平軋塗裝線的大部分投資。

Regarding shareholder distributions, we maintained our quarterly cash dividend at $0.26 per common share after increasing at 4% in the first quarter of this year. We also repurchased $338 million of our common stock, representing 3% of our outstanding shares. Since 2016, we've increased our cash dividend per share over 85%, and we've repurchased almost $2 billion of our common stock, representing 21% of our outstanding shares.

在股東分配方面，今年第一季增加 4% 後，我們將季度現金股利維持在每股普通股 0.26 美元的水平。我們也回購了 3.38 億美元的普通股，占我們已發行股票的 3%。自 2016 年以來，我們將每股現金股利增加了 85% 以上，並回購了近 20 億美元的普通股，占我們已發行股票的 21%。

While during the same time frame, we achieved an investment-grade credit rating and maintained our growth company profile by investing over $3 billion in organic capital investments and funding $720 million in acquisitions. These actions reflect the strength of our capital foundation and consistently strong cash flow generation capability and the continued optimism and confidence in our future.

同時，我們透過投資超過 30 億美元的有機資本投資和 7.2 億美元的收購資金，獲得了投資等級信用評級，並維持了公司的成長形象。這些舉措體現了我們雄厚的資本基礎和持續強勁的現金流產生能力以及對未來持續的樂觀和信心。

Our capital allocation strategy prioritizes strategic growth with shareholder distributions comprised of a base positive dividend profile that's complemented with a variable share repurchase program while also dedicated to preserving our investment-grade credit rating. We are squarely positioned for the continuation of sustainable optimized long-term value creation.

我們的資本配置策略優先考慮股東分配的策略成長，其中包括基本的正股利狀況，並輔以可變股票回購計劃，同時也致力於維持我們的投資等級信用評等。我們已做好充分準備，持續可持續優化的長期價值創造。

Sustainability is a part of our long-term value creation strategy and we are dedicated to our people, our communities and our environment. We are committed to operating our business with the highest integrity. Further committing to this path, we recently announced greenhouse gas reduction and renewable energy goals, including a goal for our steel mills to be carbon neutral by 2050.

永續發展是我們長期價值創造策略的一部分，我們致力於為我們的人民、我們的社區和我們的環境服務。我們致力於以最高的誠信經營我們的業務。為了進一步致力於這條道路，我們最近宣布了溫室氣體減排和再生能源目標，其中包括我們的鋼廠在 2050 年實現碳中和的目標。

To increase transparency and accountability, we have also set interim milestones for 2025 and 2030. We have led the steel industry with our exclusive use of electric arc furnace steelmaking technology, our circular manufacturing model and innovative solutions to increase efficiency, reduce raw material usage, reuse secondary materials and promote material conservation and recycling.

為了提高透明度和問責制，我們也設定了 2025 年和 2030 年的中期里程碑。我們憑藉獨家使用的電弧爐煉鋼技術、循環製造模式和創新解決方案，提高效率、減少原材料使用、再利用二次材料並促進材料節約和回收，引領鋼鐵業。

We plan to sustain our leadership position by executing our climate goals through among other avenues, implementing emission reduction projects, improving energy management, increasing the use of renewable energy and developing and supporting new innovative technologies. We have an actionable plan that is more manageable and we believe, considerably less expensive than what may lay ahead for our traditional blast furnace industry peers.

我們計劃透過其他途徑執行我們的氣候目標、實施減排項目、改善能源管理、增加再生能源的使用以及開發和支持新的創新技術，以維持我們的領導地位。我們有一個更易於管理的可行計劃，我們相信，其成本比傳統高爐行業同行的成本要低得多。

Our sustainability and climate strategy is an ongoing journey, and we're moving forward with the intention to make a positive difference. We plan to continue to address these matters and to play a leadership role moving forward. And for those of you that track more individually our flat-rolled shipments, for the third quarter of 2021, we had hot-rolled coil and P&O shipments of 676,000 tons, cold-rolled shipments of 145,000 tons and finally, coated shipments of 1,037,000 tons. Mark?

我們的永續發展和氣候策略是一個持續的旅程，我們正在前進，旨在做出積極的改變。我們計劃繼續解決這些問題並發揮領導作用。對於那些更具體地追蹤我們的扁鋼發貨量的人來說，2021 年第三季度，我們的熱軋捲和P&O 發貨量為676,000 噸，冷軋發貨量為145,000 噸，最後，塗層出貨量為1,037,000 噸。標記？

Super. Thank you, Theresa. Well, the steel fabrication platform delivered a tremendous performance, achieving another quarter of record shipments and more than tripling sequential operating income. Based on the strength of steel joist and deck demand, increased product pricing is more than offsetting the continued rise in steel input costs. Quoting and order activity remains extremely strong, resulting in another record order backlog at levels considerably higher than historical peaks.

極好的。謝謝你，特蕾莎。嗯，鋼鐵製造平台表現出色，出貨量又創歷史新季度紀錄，營業收入比上一季增加了兩倍多。基於鋼托樑和甲板需求的強勁，產品定價的上漲足以抵銷鋼材投入成本的持續上漲。報價和訂單活動仍然極其強勁，導致訂單積壓再次創下歷史新高，遠高於歷史高峰。

The nonresidential construction market is strong, especially in areas that support online retail, computing activities and pharmaceuticals, specifically represented by construction of distribution and warehouse facilities. We believe this will continue for the foreseeable future due to permanent changes in consumer behavior.

非住宅建築市場強勁，尤其是在支援線上零售、計算活動和製藥的領域，特別是配送和倉庫設施的建設。我們相信，由於消費者行為的永久性變化，這種情況在可預見的未來將持續下去。

Our metals recycling operations had a strong quarter with sequentially higher ferrous metal margins somewhat offsetting marginally lower volume. As we suggested on our second quarter call, the prices moderated in August and September after rising throughout the first half of the year. Export prices may support pricing near term, but auto recovery will ease prime scrap pressure and compress prime obsolete spreads to a more normal levels here in the near future, I do believe.

我們的金屬回收業務季度表現強勁，黑色金屬利潤率連續上升，在一定程度上抵消了銷量的小幅下降。正如我們在第二季電話會議上建議的那樣，價格在上半年上漲後，在八月和九月有所放緩。出口價格可能會在短期內支撐定價，但我確實相信，汽車復甦將在不久的將來緩解優質廢品壓力，並將優質報廢價差壓縮至更正常的水平。

The steel team had another outstanding quarter, achieving record operating income of $1.4 billion. During the third quarter, the domestic steel industry operated at a production utilization rate of 85% while our steel mills operated at 93% due to our product diversification, high proportion of value-added mix and supply chain differentiation.

鋼鐵團隊又迎來了一個出色的季度，營業收入達到創紀錄的 14 億美元。第三季度，由於產品多元化、增值結構佔比高以及供應鏈差異化，國內鋼鐵業生產利用率為85%，而我國鋼廠開工率為93%。

From a steel end market perspective, the automotive sector is operating at production rates lower than normalized levels due to the continued electronic chip shortage. Fortunately, our specific auto model awards have not been materially affected and we have not yet experienced any significant impact to orders related to the chip shortage.

從鋼鐵終端市場的角度來看，由於電子晶片持續短缺，汽車產業的生產力低於正常水準。幸運的是，我們的特定車型獎項並未受到重大影響，我們尚未因晶片短缺而對訂單產生任何重大影響。

The longer-term outlook for the auto industry is positive. Automotive build rate forecast for '22 and '23 in continued to be solid at over 15 million and 17 million units, respectively. Vehicle inventories continue to be at historically low levels, approximately 70% below the 5-year average and at the lowest level in over 35 years.

汽車產業的長期前景是樂觀的。22 年和 23 年的汽車產量預測繼續穩定在 1500 萬輛和 1700 萬輛以上。汽車庫存繼續處於歷史低位，比 5 年平均低約 70%，處於 35 年來的最低水準。

The nonresidential construction sector remains strong as evidenced by the strength of shipments and order backlogs at our Structural and Rail and steel fabrication businesses. We expect this strength to continue well into next year. Residential construction has also been strong, resulting in high demand for HVAC, for appliances and other related products.

非住宅建築業依然強勁，我們的結構、鐵路和鋼鐵製造業務的出貨量和積壓訂單強勁就證明了這一點。我們預計這種勢頭將持續到明年。住宅建設也很強勁，導致對暖通空調、電器和其他相關產品的需求很高。

We're also seeing healthy demand from mining on yellow goods customers and our Engineered Bar Products Division. And as oil and gas prices increased, we are seeing improved energy sector demand. These positive market dynamics are driving strong steel demand across the platform. The steady demand, coupled with continued historically low absolute inventory levels throughout the supply chain continue to support strong steel selling values, especially within the flat rolled steel market.

我們也看到黃色商品採礦客戶和我們的工程酒吧產品部門的健康需求。隨著石油和天然氣價格的上漲，我們看到能源產業的需求有所改善。這些積極的市場動態正在推動整個平台的強勁鋼鐵需求。穩定的需求，加上整個供應鏈的絕對庫存水準持續處於歷史低點，繼續支撐強勁的鋼材銷售價值，特別是在扁鋼市場。

We also believe current legislative steel trade policies, including the Section 201 flat roll cases launched in 2015 and 2016 with the subsequent circumvention restrictions will continue to keep steel imports at moderated levels. The current U.S. administration has also committed constructively concerning trade parameters and the issues created by China's steelmaking overcapacity.

我們也認為，目前的鋼鐵貿易立法政策，包括2015年和2016年啟動的201扁卷案件以及隨後的規避限制，將繼續將鋼鐵進口保持在適度水平。本屆美國政府也對貿易參數和中國鋼鐵產能過剩造成的問題做出了建設性承諾。

Regarding the ongoing negotiations between the U.S. and the EU on revoking 232 tariffs, we expect the final agreement will include a steel quota mechanism to protect U.S. national security goals and eliminate import surge risks. Aside from Turkey, Europe has not been a significant steel input source. We strongly believe that collaborating with our European allies against the real perpetrators of global overcapacity in the steel industry represented by China and other Asian export-based economies is the most effective path to free trade.

關於美國和歐盟正在進行的取消232項關稅的談判，我們預計最終協議將包括鋼鐵配額機制，以保護美國國家安全目標並消除進口激增風險。除土耳其外，歐洲並不是重要的鋼鐵輸入來源。我們堅信，與我們的歐洲盟友合作，打擊以中國和其他亞洲出口型經濟體為代表的全球鋼鐵業產能過剩的真正肇事者，是實現自由貿易的最有效途徑。

Steel Dynamics is a dynamic growth company, increasing through-cycle earnings and cash flow to support continuous value creation. The most significant growth initiative to date is at the cusp of unleashing transformational change for us and our customers. It's our new Texas electric-arc-furnace steel mill starting production before the end of this year.

Steel Dynamics 是一家充滿活力的成長型公司，不斷增加整個週期的收益和現金流，以支持持續的價值創造。迄今為止最重要的成長計畫正處於為我們和我們的客戶帶來轉型變革的風口浪尖。這是我們位於德州的新電弧爐鋼廠，將於今年年底前投產。

The excitement generated by this project from our teams and customers continues to grow. This investment represents competitively advantaged strategic growth for Steel Dynamics and our teams with associated long-term value creation for all our stakeholders. This growth initiative represents lower carbon emitting, next-generation electric furnace steel production capability, providing differentiated products and supply chain solutions for existing and for new customers.

我們的團隊和客戶對該專案產生的興奮感不斷增強。這項投資代表了 Steel Dynamics 和我們團隊具有競爭優勢的策略性成長，並為我們所有利害關係人創造了相關的長期價值。這項成長舉措代表了低碳排放、下一代電爐鋼生產能力，為現有和新客戶提供差異化產品和供應鏈解決方案。

3 million-ton state-of-the-art facility is designed to have product capabilities beyond that of any existing electric-arc-furnace flat-rolled steel producer, competing even more effectively with higher carbon emitting integrated steel facilities and high carbon foreign competition. It provides us with a more diverse steel product portfolio and benefits our customers with an even broader climate conscious supply option.

300萬噸最先進的設施的設計，其產品能力超越任何現有的電弧爐扁鋼生產商，與高碳排放綜合鋼鐵設施和高碳外國競爭對手進行更有效的競爭。它為我們提供了更加多樣化的鋼鐵產品組合，並透過更廣泛的氣候意識供應選擇使我們的客戶受益。

The team shipped their first painted coils in September. We anticipate shipping galvanized products early in November and commencing hot-rolled coil production before the end of the year.

該團隊於 9 月運送了第一批塗漆線圈。我們預計鍍鋅產品將在 11 月初出貨，並在年底前開始熱軋捲材生產。

The Sinton team is doing a terrific job. It is truly a transformational project, and we are on the verge of seeing the significant benefits it will bring to our company, our teams, our customers and our other stakeholders. (inaudible) Sinton provides a strategic location near Corpus Christi, with underserved commercial markets representing over 27 million tons of relevant flat-rolled steel consumption in the U.S. and Mexico.

Sinton 團隊做得非常出色。這確實是一個轉型項目，我們即將看到它將為我們的公司、團隊、客戶和其他利害關係人帶來的重大利益。（聽不清楚）Sinton 擁有靠近科珀斯克里斯蒂的戰略位置，其服務不足的商業市場代表了美國和墨西哥超過 2700 萬噸的相關扁鋼消費量。

Our customers are excited to have freight advantaged regional flat roll supplier. We have 6 customers committed to locate on site, representing 1.8 million tons of annual processing and consumption capability. 5 of these customers have already broken ground.

我們的客戶很高興擁有貨運優勢的區域平卷供應商。目前已簽約客戶6家，年加工消費量180萬噸。其中 5 家客戶已經動工。

Based on this geographic location, we can offer shorter delivery lead times, providing a superior customer supply chain solution. We will also effectively compete with steel imports arriving in Houston and the West Coast, benefiting consumers in these areas with lower logistics costs while removing the ocean transit price, quality and delivery risks.

基於這個地理位置，我們可以提供更短的交貨週期，提供卓越的客戶供應鏈解決方案。我們也將有效地與到達休士頓和西海岸的進口鋼材競爭，以較低的物流成本使這些地區的消費者受益，同時消除海運價格、品質和交付風險。

We've also made considerable progress concerning our raw material procurement strategy for Sinton. We completed the acquisition of a Mexican metals recycling company in August 2020, a critical step. The recycling operations are strategically located near high-volume industrial scrap sources throughout Central and Northern Mexico. We also recently acquired 3 strategic recycling locations in the Houston and Corpus Christi area, further supporting raw material supply for Sinton.

我們在 Sinton 的原物料採購策略方面也取得了相當大的進展。我們於 2020 年 8 月完成了對一家墨西哥金屬回收公司的收購，這是關鍵的一步。回收業務策略性地位於墨西哥中部和北部的大量工業廢料來源附近。我們最近也在休士頓和科珀斯克里斯蒂地區收購了 3 個策略回收地點，進一步支持 Sinton 的原料供應。

Our performance-based operating culture, coupled with a considerable experience in successfully constructing and operating highly profitable steel assets positions us incredibly well to successfully execute this transformational growth. As I've said before, we're not simply adding flat-rolled steel production capacity. We have a differentiated product offering, a unique regional supply chain solution, a significant geographic freight and lead time advantage and offer a sustainable alternative to imports in a region in need of options.

我們以績效為基礎的營運文化，加上在成功建造和營運高利潤鋼鐵資產方面的豐富經驗，使我們能夠成功地實現這一轉型成長。正如我之前所說，我們並不是單純地增加扁鋼產能。我們擁有差異化的產品供應、獨特的區域供應鏈解決方案、顯著的地理貨運和交貨時間優勢，並為需要選擇的地區提供可持續的進口替代方案。

We also plan to construct 4 additional value-added flat-rolled coating lines, comprised of 2 new paint lines and 2 new galvanizing lines with Galvalume coating capability. Our unique value-added coating supply chain strategy has resulted in our existing lines consistently running at or near full capacity. Our existing customers are anxiously awaiting the volume from these new lines.

我們還計劃再建造 4 條增值平軋塗裝線，其中包括 2 條新塗裝線和 2 條具有鍍鋁鋅塗層能力的新鍍鋅線。我們獨特的增值塗料供應鏈策略使我們現有的生產線始終以滿載或接近滿載運行。我們現有的客戶正在焦急地等待這些新產品線的銷售量。

The galvanizing line and pre-paint line will be located on site to benefit our new Sinton steel mill, while the other 2 lines will be placed at our Heartland Flat Roll division located in Terrault, Indiana. Each site will thus increase coating capacity by 540,000 tons to further support our regional flat-rolled steel operations, providing them with more value-added product diversification to serve our customers' needs. We expect these lines will begin operating in mid-2023.

鍍鋅生產線和預塗漆生產線將建在現場，以利於我們新的 Sinton 鋼廠，而另外 2 條生產線將建在位於印第安納州特羅特的 Heartland Flat Roll 部門。因此，每個工廠的塗層產能將增加 54 萬噸，以進一步支援我們的區域扁鋼業務，為他們提供更多加值產品多樣化，以滿足客戶的需求。我們預計這些線路將於 2023 年中期開始營運。

New Process Steel has been a significant customer for these value-added products. In fact, they have grown to be our single largest flat-rolled steel customer in recent years. And importantly, the majority of their business relates to high-margin coated flat-rolled products, which are further manufactured for HVAC, appliance store and automotive applications.

新工藝鋼一直是這些加值產品的重要客戶。事實上，近年來他們已成長為我們最大的扁鋼客戶。重要的是，他們的大部分業務涉及高利潤塗層壓延產品，這些產品進一步製造用於暖通空調、家電商店和汽車應用。

Our plans to purchase a 45% minority interest in New Process provides us security and supplying these OEM customers. More importantly, the partnership provides Steel Dynamics more exposure to nonautomotive, value-added manufacturing in Mexico, a key strategic objective to develop additional downstream pull-through volume, which will help support our new Sinton steel mill.

我們計劃購買 New Process 45% 的少數股權，為我們提供安全保障並為這些 OEM 客戶供貨。更重要的是，該合作夥伴關係使Steel Dynamics 能夠更多地接觸墨西哥的非汽車增值製造業，這是開發更多下游拉通量的關鍵戰略目標，這將有助於支持我們新的Sinton 鋼廠。

As the majority owner and operator, New Process' CEO, Richard and his management team, will continue to control day-to-day operations, including all decisions concerning steel purchases and product sales.

作為主要所有者和營運商，New Process 執行長理查德及其管理團隊將繼續控制日常運營，包括有關鋼材採購和產品銷售的所有決策。

In closing, our culture and the execution of our long-term growth strategy continues to strengthen our financial position through strong cash flow generation, demonstrating our sustainability and differentiating us from our competition. We are a growth company. The team will continue to identify and execute high-return, organic and transactional growth opportunities while providing attractive shareholder returns.

最後，我們的文化和長期成長策略的執行透過強勁的現金流產生繼續加強我們的財務狀況，展示了我們的可持續性並使我們在競爭中脫穎而出。我們是一家成長型公司。該團隊將繼續尋找並執行高回報、有機和交易性成長機會，同時提供有吸引力的股東回報。

Our people and the spirit of excellence provide the foundation for our success, and I thank each of you for your passion and dedication to each other, our customers and our communities. And to our teams, remember that your health and safety are the most important issue at hand, and thank you for the exceptional job you do. So everyone, thank you for joining us today.

我們的員工和卓越精神為我們的成功奠定了基礎，我感謝你們每個人對彼此、我們的客戶和社區的熱情和奉獻。對於我們的團隊，請記住您的健康和安全是當前最重要的問題，並感謝您所做的出色工作。謝謝大家今天加入我們。

And Kate, will you please open the line for questions?

凱特，請打開提問線好嗎？

(Operator Instructions) Our first question today is coming from Sathish Kasinathan at Deutsche Bank.

（操作員說明）我們今天的第一個問題來自德意志銀行的 Sathish Kasinathan。

My first question is on growth strategy. In the last call, you mentioned that you don't see any Sinton type greenfield projects on your horizon. Since then, we have seen a couple of new greenfield projects announced by your peers, a few more acquisitions on the raw material side. So just curious on what's your latest thinking regarding organic growth and M&A.

我的第一個問題是關於成長策略。在上次電話會議中，您提到您沒有看到任何辛頓類型的綠地專案。從那時起，我們看到同行宣布了幾個新的綠地項目，以及更多原材料的收購。所以只是想知道您對有機成長和併購的最新想法是什麼。

Yes. Sathish, I'm not sure that our strategy has necessarily changed because of recent announcements from competitors, I would say that. We're very focused on high-margin organic investments where we can be differentiated through value-add or a supply chain or both solution. And so that's what the 4 coating lines provide from the flat roll side of the business.

是的。Sathish，我不確定我們的策略是否一定會因為競爭對手最近的公告而改變，我想說。我們非常專注於高利潤的有機投資，我們可以透過增值或供應鏈或兩者兼而有之的解決方案來實現差異化。這就是 4 條塗層生產線從平捲業務提供的服務。

From an acquisition perspective, we're still very focused, and we believe there's a lot of options available now and likely into next year as it relates to both high-end manufacturing businesses that help us with our pull-through volume for our steel mills as well as there might possibly be some tuck-in scrap acquisitions as it relates to building out areas around our steel mills from a strategic perspective and the geographic supply of scrap as well as potentially their steel assets as well, but we're very busy from a growth perspective.

從收購的角度來看，我們仍然非常專注，我們相信現在和明年可能有很多選擇，因為它涉及到幫助我們提高鋼廠產量的高端製造業務以及可能會有一些隱藏的廢鋼收購，因為這涉及從戰略角度和廢鋼的地理供應以及潛在的鋼鐵資產建設我們鋼廠周圍的區域，但我們非常忙碌地從成長的角度來看。

Mark, do you have anything to add?

馬克，你還有什麼要補充的嗎？

Not really. I think that our strategic path, as demonstrated over the years and continues to demonstrate that we always grow in a differentiated way. And so the new projects that are coming online, the changes in the scrap market don't change that outlook.

並不真地。我認為我們的戰略道路多年來已經證明並將繼續證明我們始終以差異化的方式成長。因此，即將上線的新項目、廢鋼市場的變化不會改變這種前景。

Okay. And my second question is on Sinton. Can you talk about the ramp-up profile in detail? It seems you have trimmed your volume guidance for 2022 by 200,000 tons. When do you expect Sinton to achieve full run rate?

好的。我的第二個問題是關於辛頓的。您能詳細談談 Ramp-Up 設定檔嗎？看來你們已經將 2022 年的產量指引削減了 20 萬噸。您預計 Sinton 何時能達到滿載運轉？

We did, Sathish, based on the delay in the start-up, which Mark can talk about, they're still doing incredibly well given the circumstances. But we decided that we would probably pull back our estimate from 2.2 million to 2.4 million tons next year to the 2 million to 2.2 million tons. So it's not a huge reduction, but it's a reduction taking into consideration the ramp will start a little bit later in 2021 than we expected. But Mark, maybe you can give some details on when Sinton will be fully operational.

我們做到了，薩蒂什，基於啟動的延遲，馬克可以談論這一點，考慮到這種情況，他們仍然做得非常好。但我們決定，明年的產量預測可能會從 220 萬噸至 240 萬噸下調至 200 萬噸至 220 萬噸。因此，這並不是一個巨大的減少，但考慮到 2021 年斜坡開始的時間比我們預期的要晚一些，所以這是一個減少。但是馬克，也許你可以提供一些關於 Sinton 何時全面投入運營的細節。

Yes, the actual trajectory of the ramp remains unchanged. It's just the starting point has been delayed a little bit. I would emphasize and echo Theresa, the team continues to do an absolutely phenomenal job in bringing such a huge scale project online. We have had a couple of issues just recently that has delayed it into late November, early December.

是的，坡道的實際軌跡保持不變。只是出發點稍微延後了一些。我想強調並呼應Theresa，該團隊在將如此大規模的專案上線方面繼續做出了絕對出色的工作。最近我們遇到了一些問題，導致推遲到 11 月底、12 月初。

We have a crane delivery issue that slipped just literally last week by a couple of weeks. COVID -- the recent COVID wave in Texas impacted the number of contractors available on site each day. And to be honest, as areas have opened up just recently on the electrical side, we've had a tough time getting night shift electricians on board to complete it in mid-November. So it has slid here another 2 or 3 weeks.

我們的起重機交付問題實際上在上週推遲了幾週。新冠肺炎—德州最近的新冠疫情浪潮影響了每天在現場的承包商數量。老實說，由於電力方面的區域最近才開放，我們很難讓夜班電工在 11 月中旬完成這項工作。所以它又滑了兩三週。

We're still confident for an end of year start-up. The paint line has been running, running quality product that shipped coil in September. We expect the galvanizing line to -- it's up going through final commissioning and should be shipping coils here early November.

我們對年底的啟動仍然充滿信心。油漆生產線一直在運行，生產的產品品質優良，已於 9 月發貨。我們預計鍍鋅生產線即將完成最終調試，並應在 11 月初在這裡運送捲材。

And Sathish to answer your last question, we would expect that they would be at a full run rate likely by midyear of 2022.

Sathish 回答你的最後一個問題，我們預計它們可能會在 2022 年年中達到滿載運轉。

Our next question today is coming from Martin Englert at Seaport Research Ventures -- Seaport Research Partners?

今天我們的下一個問題來自 Seaport Research Ventures 的 Martin Englert——Seaport Research Partners？

Do you expect the lagging flat-rolled contracts will remain around 80% of your flat order book in the 4Q and then moving into next year? And then maybe if you can also touch on the contract dynamics, specifically the potential elimination of discounts on the lagging contracts for next year.

您是否預計第四季度滯後的扁鋼合約將佔您扁鋼訂單的 80% 左右，然後進入明年？然後也許您還可以談談合約動態，特別是明年滯後合約折扣的潛在取消。

Yes. We'll likely finish the year at or around [a bit] on flat roll -- around about 80% -- 75%, 80% on the contract side. As Sinton picks up steam next year, that would probably slide to around about 70% of the flat roll base. Relative to sort of terms of contracts, obviously, those are -- discussions that are ongoing. We have finalized a few and the contract terms are somewhat advantaged over the previous past periods. Principally on the range, the volume ranges are contracting so that we have a greater control of the order book as the market fluctuates.

是的。我們可能會在今年結束時以平卷方式完成或大約[一點]——大約80%——75%，80%在合約方面。隨著 Sinton 明年的發展，這一比例可能會下滑至平卷底座的 70% 左右。顯然，相對於某種合約條款，這些討論正在進行中。我們已經敲定了一些，合約條款比之前的時期有一些優勢。主要是在範圍上，交易量範圍正在縮小，因此隨著市場波動，我們可以更好地控制訂單簿。

Okay. And some of this you touched on in your prepared remarks, but can you kind of discuss your EAF strategy, if that's changing heading into next year, specifically, there's 3 flat-rolled EAF mills that are ramping capacity near term, all of which are going to require prime scrap and/or substitutes. And do you feel that there is ample North American supply of primes? Or will more imports of substitutes be required or some other strategy?

好的。您在準備好的發言中談到了其中的一些內容，但是您能否討論一下您的EAF 戰略，如果這種情況在明年發生變化，具體來說，有3 家平軋EAF 鋼廠近期正在提高產能，所有這些鋼廠都在將需要主要廢料和/或替代品。您認為北美的優質產品供應充足嗎？或是否需要更多進口替代品或採取其他策略？

Well, I've been in the business for 40 years now. And every year, people are worried about whether you can get scrap next year as the EAF industry is -- continue to grow. And today the EAF industry is around about 70%, growing to 75% or thereabouts. I do believe some of the recent alternative iron units, almost 1.8 million tons or whatever from Cleveland-Cliffs certainly helps. And I would imagine that over time, we'll see more investment in those products going forward.

嗯，我從事這個行業已經 40 年了。每年，人們都會擔心明年是否會像電弧爐行業一樣繼續成長而獲得廢鋼。如今，電爐煉鋼產業的佔比約為 70%，並將成長至 75% 左右。我確實相信最近的一些替代鐵裝置，近 180 萬噸或來自克利夫蘭懸崖的任何東西肯定會有所幫助。我想隨著時間的推移，我們將看到對這些產品的更多投資。

I think you're also going to see a reduction of prime scrap required by the electric-arc-furnace community. We've been very successful over the last -- since last March, reducing our prime scrap, our busheling and bundle requirements from 60% of the mix down to 40% of the mix through better processing at our scrap facilities. So that will certainly ease the any volume demand there.

我認為您還將看到電弧爐社區所需的主要廢料的減少。過去我們非常成功——自去年 3 月以來，透過在我們的廢料設施中進行更好的處理，將我們的主要廢料、我們的蒲式耳和捆紮要求從混合物的 60% 降低到混合物的 40%。因此，這肯定會緩解那裡的任何數量需求。

So we think it will grow or the scrap volume, which will grow in lockstep with increased capacity. It may take a few more dollars to draw out the obsolete grades. That's historically been very elastic. And as you saw recently with the higher pricing, obsolete grades flowed very, very well.

因此，我們認為廢品量將會成長，廢品量將隨著產能的增加而同步成長。可能需要多花幾美元才能取出過時的成績。從歷史上看，這非常有彈性。正如您最近看到的那樣，隨著定價的提高，過時的等級產品流通得非常非常好。

What specifically changed with your scrap processing that dropped it from 60% to 40% of primes?

您的廢品處理具體發生了什麼變化，將質數從 60% 降至 40%？

Well, I'd be giving away trade secrets, if I told you the detail there, but obviously, just better separating techniques.

好吧，如果我告訴你那裡的細節，我會洩露商業秘密，但顯然，只是更好的分離技術。

Okay. Appreciate the color there. And congratulations on the results and the positive outlook.

好的。欣賞那裡的顏色。並對結果和積極的前景表示祝賀。

Super, thank you very much. Team did a great job.

超級，非常感謝。團隊做得很好。

Our next question today is coming from Emily Chieng at Goldman Sachs.

今天我們的下一個問題來自高盛的 Emily Chieng。

My first question is around capital allocation. I believe in the past, you've mentioned that you'd be looking at increasing the dividend once Sinton comes online. Can you perhaps give us a sense of the magnitude of that bump and perhaps when we should be expecting that to take place?

我的第一個問題是關於資本配置的。我相信您過去曾提到，一旦 Sinton 上線，您就會考慮增加股息。您能否讓我們了解一下這種衝擊的嚴重程度，以及我們應該預期什麼時候會發生這種情況？

Well from a magnitude perspective, that's difficult, Emma, and I appreciate the question, but that's a Board decision. I would tell you, if you looked at history, when we've had transformational growth that we believed provided sustainable through-cycle cash flow increase, such as when we purchased the Columbus Flat Roll division, and we were finished transforming that early in the kind of 2016 time frame, you would have seen several 20% increases in our dividend profile at that point in time. I don't think that, that is unreasonable at all. As far as the timing, I would fully expect to see something happen in the early part of 2022. But again, that's a Board decision. And so I guess more to come on that.

嗯，從規模的角度來看，這很困難，艾瑪，我很欣賞這個問題，但這是董事會的決定。我會告訴你，如果你回顧歷史，當我們實現轉型增長時，我們相信可以提供可持續的整個週期現金流增長，例如當我們購買哥倫布平卷部門時，我們在早期就完成了轉型在2016 年的時間範圍內，您會看到我們當時的股利狀況增加了20%。我不這麼認為，這根本不合理。就時間安排而言，我完全預期 2022 年初會發生一些事情。但同樣，這是董事會的決定。所以我想還會有更多的事情發生。

Great. That makes a lot of sense. And then a follow-up just around sort of the acquisition there. Can you perhaps talk around the rationale around the acquisition of a 45% minority ownership of New Process Steel rather than perhaps a full 100% ownership there? I'll leave it at that.

偉大的。這很有意義。然後是圍繞那裡的收購進行的後續行動。您能否談談收購 New Process Steel 45% 少數股權而不是 100% 全部所有權的理由？我就這樣吧。

Again, as we mentioned, New Process has grown to be our largest customer. It has a particular concentration of value-add pre-paint to OEM customers. and we wanted to ensure security in that supply chain going forward. But as importantly, if not more importantly, they have a strong focus on downstream manufacturing, particularly in Mexico. And that is aligned with our strategic desires and objectives to increase pull-through volume. And so that would add support to our Sinton facility.

正如我們所提到的，New Process 已成為我們最大的客戶。它專門為 OEM 客戶提供增值預塗漆。我們希望確保未來供應鏈的安全。但同樣重要的是，如果不是更重要的話，他們非常關注下游製造，特別是在墨西哥。這符合我們增加吞吐量的戰略願望和目標。這將為我們辛頓工廠提供更多支援。

The minority position really, Emma, allows that management team and Richard Fant to continue to run the business, basically unchanged. And that's something that is attractive to us at this point in time.

艾瑪（Emma）確實是少數派，允許管理團隊和理查德·范特（Richard Fant）繼續經營業務，基本上沒有變化。這是目前對我們有吸引力的事。

Our next question today is coming from Michael Glick at JPMorgan.

今天我們的下一個問題來自摩根大通的邁克爾·格里克。

Costs are obviously top of mind for the market right now. You've already hit on scrap, but could you talk a bit about what you're seeing on the cost side outside of scrap, including energy and raw materials and any supply chain issues you're monitoring or working to mitigate?

成本顯然是目前市場最關心的問題。您已經談到了廢品，但您能否談談您在廢品之外的成本方面看到的情況，包括能源和原材料以及您正在監控或努力緩解的任何供應鏈問題？

Well, I think the energy pricing here has risen to some degree. But again, natural gas cost is a very, very small percentage of our overall cost structure. On the raw material side, probably ferrosilicon is the only item that we're actually watching and taking steps to ensure -- secure supply there.

嗯，我認為這裡的能源價格已經上漲了一定程度。但同樣，天然氣成本在我們的整體成本結構中只佔非常非常小的比例。在原料方面，矽鐵可能是我們真正關注並採取措施確保安全供應的唯一項目。

Actually, throughout the supply chain, especially on the steel side but in the other operating platforms as well with the supply disruptions that everyone is experiencing across any industry at this point in time, whether it relates to logistics or just lack of supply chain stability, we actually have been doing a very deep dive into looking at the relationships we have with suppliers and to have redundancy and suppliers, et cetera. That's something that we do regularly, but we're refocused on it as well.

事實上，在整個供應鏈中，特別是在鋼鐵方面，但在其他營運平台以及任何行業中每個人此時都正在經歷的供應中斷，無論是與物流有關還是只是缺乏供應鏈穩定性，實際上，我們一直在非常深入地研究我們與供應商的關係以及冗餘和供應商等等。這是我們經常做的事情，但我們也重新關注它。

And at this point in time, we feel very good about the, I'll call them, consumables, the supply of consumables. Obviously, natural gas is very highly priced and going into the winter months, I think a lot of people are expecting that natural gas might continue to rise. Obviously, it is in rest of the world, but possibly in the U.S. as well. But that means that, as Mark mentioned, being 100% electric arc furnace, it's only a couple of percentages of our cost profile. So we're feeling pretty good heading into 2022 at this point.

此時此刻，我們對我稱之為消耗品、消耗品的供應感覺非常好。顯然，天然氣的價格非常高，進入冬季，我認為很多人都預期天然氣可能會繼續上漲。顯然，它在世界其他地方，但也可能在美國。但這意味著，正如 Mark 所提到的，作為 100% 電弧爐，它只占我們成本的幾個百分點。因此，我們現在對 2022 年的到來感覺非常好。

Understood. And then on the fabrication business, I mean, you talked about the record backlog and pricing. But curious what sort of order of magnitude you're seeing in pricing versus what you posted this quarter just given the lead times associated with that business. And really just trying to get a handle on the staying power of the earnings in that segment.

明白了。然後在製造業務上，我的意思是，您談到了創紀錄的積壓和定價。但很好奇的是，考慮到與該業務相關的交貨時間，您所看到的定價與本季發布的價格相比是多少。實際上只是想了解該細分市場獲利的持久力。

Well, the -- I guess the staying power or the health of that industry is, in my mind, phenomenal, number one, as said in my earlier remarks, there certainly has been a permanent change in consumer sort of mindset. And so the online retail purchasing is just driving a massive distribution warehouse-type construction, computing -- cloud computing activity likewise. And we're seeing projects, in honesty, being pushed out 10 months. Our backlog is even longer than 10 months. And you might say people are concerned about the labor shortage and those sorts of things, but in a strange way, that's actually helping extend this whole economic cycle and pushing those projects out. So we are very, very, very bullish in that arena for 2022.

嗯，我想，在我看來，該行業的持久力或健康狀況是驚人的，是第一位的，正如我之前的演講中所說，消費者的心態肯定發生了永久性的變化。因此，線上零售採購正在推動大規模的分銷倉庫類型的建設，計算——雲端運算活動也是如此。老實說，我們看到專案被推遲了 10 個月。我們的積壓甚至超過10個月。你可能會說人們擔心勞動力短缺和諸如此類的事情，但以一種奇怪的方式，這實際上有助於延長整個經濟週期並推動這些項目。因此，我們對 2022 年這個領域非常、非常、非常樂觀。

You asked the question about how much further pricing could move. So if you -- I will not -- we can't give you specifics, but it's a meaningful increase because as they have the backlog that Mark mentioned, that's almost a year out, you already have that product pricing substantiated. And so that's why in my opening remarks people may not have picked it up, but I may mention the fact that we do expect to have increased fabrication earnings in the fourth quarter. as well as into 2022, and that's based off of the record comparison of the third quarter. So there's substantial earnings uplift that we're expecting from the steel fabrication segment.

您詢問了定價可以進一步調整多少的問題。因此，如果你——我不會——我們無法向你提供具體細節，但這是一個有意義的增長，因為他們有馬克提到的積壓，幾乎一年後，你已經證實了產品定價。因此，這就是為什麼在我的開場白中人們可能沒有註意到這一點，但我可能會提到一個事實，即我們確實預計第四季度的製造收入會增加。以及 2022 年，這是基於第三季的記錄比較。因此，我們預計鋼鐵製造領域的獲利將大幅成長。

And I would just add -- I think I saw 1 comment this morning, but maybe there was a change in tone of our press release. I would just want to emphasize that we're as bullish, if not more bullish for the fourth quarter and going into next year as we ever have been.

我想補充一點——我想我今天早上看到了 1 條評論，但也許我們新聞稿的語氣發生了變化。我只想強調，我們對第四季和明年的前景同樣樂觀，甚至更樂觀。

Our next question today is coming from Carlos De Alba at Morgan Stanley.

今天我們的下一個問題來自摩根士丹利的卡洛斯·德阿爾巴。

So I wonder if you could comment or elaborate a little bit more on your growth strategy. And how would you either rank or prioritize potentially investments in additional (inaudible) capacity above and beyond potentially further investments are [preside] the quarter lines that you have already announced and the scrap processors and locations that you have acquired recently. Is it another greenfield, something that you would prioritize over more targeted acquisitions and/or further downstream investments?

所以我想知道您是否可以評論或詳細闡述您的成長策略。除了潛在的進一步投資之外，您如何對額外（聽不清楚）產能的潛在投資進行排名或優先排序[主持]您已經宣布的季度生產線以及您最近收購的廢品處理商和地點。這是另一個未開發的領域，您會優先考慮更有針對性的收購和/或進一步的下游投資嗎？

Well, I'm sorry, Carlos. I had -- we had a tough time understanding the whole question there. So if I don't answer it, just come back and hit me again. But on the recycling side, I think you were suggesting or asking whether or not we have major plans in transactions or growing that business. I would say, as we -- again, we've said this in the past, we're not interested in growing our recycling platform for the sake of just growth. We will continue to identify regional assets that complement our steel mills, such as we did -- here in the Southwest we bought -- purchasing those 3 yards and then also the Zimmer acquisition in Mexico. But there's not a wholesale change in our recycling strategy whatsoever. We will continue -- sorry, go ahead.

好吧，我很抱歉，卡洛斯。我——我們很難理解整個問題。所以如果我不接的話，你就再回來打我吧。但在回收方面，我認為您是在建議或詢問我們在交易或發展業務方面是否有重大計劃。我想說，正如我們過去所說的那樣，我們對為了成長而發展我們的回收平台不感興趣。我們將繼續尋找與我們的鋼鐵廠互補的區域資產，就像我們在西南地區購買的那樣，購買了這 3 個碼場，然後也在墨西哥收購了 Zimmer。但我們的回收策略並沒有發生大規模的改變。我們將繼續——抱歉，繼續吧。

No, no. Sorry that I interrupted you, Mark. Yes. And what about further investments after Sinton [including] steel capacity?

不，不。抱歉我打擾你了，馬克。是的。Sinton之後的進一步投資[包括]鋼鐵產能又如何呢？

So what Carlos is asking is after Sinton is complete and after we have the 4 value-added lines that are processing, what greenfield might come after that?

那麼卡洛斯問的是，在 Sinton 竣工之後，在我們有 4 條增值生產線正在處理之後，之後可能會出現什麼綠地？

Well, I do believe we will continue to focus on value-add opportunities downstream, more so in processing. The greenfield project of Sinton was a very unique opportunity, at least in my eyes. It was a combination of differentiating ourselves relative to product, bringing new supply chain solutions to our customer base and having a very, very unique sort of geographic location to serve those customers. We wouldn't build another greenfield facility unless it had a truly differentiating characteristics. And it's difficult to see that, that will avail itself in the U.S. today.

嗯，我確實相信我們將繼續關注下游的增值機會，尤其是加工領域。辛頓的綠地計畫是一個非常獨特的機會，至少在我看來是這樣。這是我們在產品方面的差異化、為我們的客戶群帶來新的供應鏈解決方案以及擁有非常非常獨特的地理位置來為這些客戶提供服務的結合。除非它具有真正與眾不同的特徵，否則我們不會建造另一個綠地設施。很難看出這對今天的美國有用。

All right. Thank you very much for that response, Mike.

好的。非常感謝您的回复，邁克。

Sorry, Carlos. And then the other sort of strategic path we've continued to chase is downstream sort of fabrication, manufacturing and we would be looking to do that both in the U.S. and in Mexico.

對不起，卡洛斯。然後，我們繼續追求的另一種戰略路徑是下游的製造、製造，我們希望在美國和墨西哥都這樣做。

Perfect. And Theresa, if I may ask you, how do you see working capital in the fourth quarter? Clearly, prices are still very high, raw materials are increasing your forecast for the fourth quarter is for another record result. So is it fair to assume mostly higher working capital levels. But do you have a sense of the magnitude of how much cash that would consume in the last quarter of the year?

完美的。特蕾莎，如果我可以問你，你如何看待第四季的營運資金？顯然，價格仍然非常高，原材料正在增加，您對第四季度的預測是另一個創紀錄的結果。因此，假設營運資本水準大多較高是否公平。但您是否知道今年最後一季將消耗多少現金？

There's a few things happening at the same time in the fourth quarter. So we will have higher average steel selling values simply because of the carryover in the lagging contract business that we mentioned from the Flat Roll Group. And in addition to that, we'll be ramping up Sinton. And so we'll be putting additional working capital both through steel substrate and through scrap on the ground as they begin to produce. So I would expect to see a continued use of cash in working capital. I don't expect it to be close to the same magnitude that we saw in the third quarter. We also in the third quarter had some building at Sinton as well. So I would expect maybe a couple of hundred million dollar build, but nothing beyond that. Again, it's a very difficult thing to monitor when prices continue to rise, but I think that's probably a good estimate at this point.

第四季同時發生了幾件事。因此，我們將擁有更高的平均鋼材銷售價值，僅僅是因為我們提到的平卷集團滯後合約業務的結轉。除此之外，我們也將加強 Sinton。因此，當它們開始生產時，我們將透過鋼基材和地面廢料投入額外的營運資金。因此，我預計營運資金將繼續使用現金。我預計其幅度不會接近第三季的水平。我們在第三季也在 Sinton 建造了一些建築。所以我預計建造費用可能是幾億美元，但除此之外別無其他。同樣，當價格繼續上漲時，監控是一件非常困難的事情，但我認為目前這可能是個不錯的估計。

Our next question today is coming from David Gagliano at BMO.

今天我們的下一個問題來自 BMO 的 David Gagliano。

I just have actually a few numbers related questions. I think in the Q&A last quarter, you indicated a preliminary 2022 CapEx of $550 million to $600 million. And I thought I heard you say on this call earlier that you expect CapEx to be $750 million for 2022.

我實際上只是有一些與數字相關的問題。我認為在上個季度的問答中，您表示 2022 年初步資本支出為 5.5 億至 6 億美元。我想我聽到您早些時候在這次電話會議上說過，您預計 2022 年的資本支出為 7.5 億美元。

And I also noticed that the rolling mill start-up looks like it's been pushed out to 2023 versus what I thought was mid-2022 previously. So my first questions are a, what is the driver for the higher 2022 CapEx, if that's correct? And b, what is the driver for pushing the rolling mill start-ups to mid-2023 versus 2022 previously?

我還注意到，軋鋼廠的啟動似乎已被推遲到 2023 年，而我之前認為是 2022 年中期。所以我的第一個問題是，2022 年資本支出較高的驅動因素是什麼（如果這是正確的）？b，與之前的 2022 年相比，推動軋機新創公司推遲到 2023 年中期的驅動因素是什麼？

Okay. So to address your last question first, if you're speaking about the rolling mill, David, are you talking about the Sinton rolling mill?

好的。因此，首先要解決你的最後一個問題，如果你談論的是軋機，大衛，你是在談論 Sinton 軋鋼機嗎？

I thought effectively, there was commentary back in April, I think it was. And then again, in the last quarter that that just in general, the 4 rolling mills would be starting up by mid-2022. Perhaps I got that wrong.

我想，四月就有評論了，我想是的。話又說回來，在上個季度，一般來說，4 家軋機將在 2022 年中期啟動。也許我錯了。

The value-added line, no. So the value-add lines we had hoped to be in the second half of 2022. But given the engineering of the lines and just the...

增值線，沒有。因此，我們希望在 2022 年下半年實現增值業務。但考慮到線路的工程設計以及...

Delivery.

送貨。

The delivery of equipment at this point in time, it's pushing us back to now -- we think those lines will be operational in the first half of 2023. So you're correct, that is a change, but that has to do with the engineering and the equipment delivery time lines.

此時設備的交付，讓我們回到了現在——我們認為這些生產線將在 2023 年上半年投入營運。所以你是對的，這是一個變化，但這與工程和設備交付時間線有關。

As it relates to capital spending for 2022, you're correct. On the last quarter call, you would have given something closer to the $600 million range, but that's prior to us doing the deep dive that we do every fall into capital projects. And as you'll remember, there's so much of all of our team members' compensation that's at risk to performance and high-return investments, they always put together the wish list of very good investment opportunities that would result in a higher compensation for them if they have high returns.

因為它與 2022 年的資本支出有關，所以你是對的。在上一季的電話會議上，您可能會給出接近 6 億美元的金額，但這是在我們每次深入資本項目之前進行的。正如您所記得的，我們團隊成員的大部分薪酬都面臨著績效和高回報投資的風險，他們總是將非常好的投資機會的願望清單放在一起，這將為他們帶來更高的薪酬如果他們有高回報。

So we went through that process. And at this point in time, that's added probably about $100 million to the capital that we expect to spend next year. And that would be projects that we believe will have a very good return profile to it. Some of them will start next year, some of them will just have the money spent and then kind of roll into 2023. But there's no 1 significant project that's adding to that. Most of that $700 million is actually tied to the 4 value-added flat roll lines.

所以我們經歷了這個過程。目前，我們預計明年的資本支出可能會增加約 1 億美元。我們相信這些項目將會有很好的回報。其中一些將於明年開始，另一些將只花完錢，然後延續到 2023 年。但沒有一個重要的項目可以增加這一點。這 7 億美元中的大部分實際上都與 4 條增值平軋生產線有關。

Okay. The 4 value-added flat roll lines that were pushed to 2023, and I apologize I called them rolling mills, I apologize. You're right. The 4 value-add flat-rolled lines that were pushed, I think to 2023, but okay, but then there's other projects in there that raised the total from $550 million to $600 million to $750 million. So $150 million to $200 million higher versus last quarter on some other projects. Is that right?

好的。推遲到2023年的4條增值扁軋生產線，我很抱歉我稱它們為軋機，我很抱歉。你說得對。我認為推到 2023 年的 4 條增值平軋生產線，但好吧，但還有其他項目將總額從 5.5 億美元提高到 6 億美元，再到 7.5 億美元。因此，其他一些項目比上季增加了 1.5 億至 2 億美元。是對的嗎？

That's correct. So they're high return projects and there are spreads throughout fabrication, the steel mills, we're adding some inspection lines likely down at our SBQ facility. So there's just a lot of individual projects like that, David, that aren't significant individually. But as they added together, it's a higher number.

這是正確的。因此，它們是高回報項目，並且在整個製造、鋼廠中都有分佈，我們可能會在 SBQ 設施中添加一些檢查線。所以，大衛，有很多像這樣的個人項目，這些項目單獨而言並不重要。但當他們加在一起時，這個數字更高。

Okay. Great. And then just 1 other 1 for me. Operationally, shipments overall were down 5% in the third quarter. Obviously, production was great, and shipments were down 5% in the third quarter on a quarter-over-quarter basis. Can you just talk about what was the main driver for the quarter-over-quarter decline? And what's a reasonable assumption for shipments in terms of quarter-over-quarter change in the typically seasonally weak fourth quarter?

好的。偉大的。然後再給我 1 個。從營運角度來看，第三季整體出貨量下降了 5%。顯然，產量很大，第三季出貨量較上季下降了 5%。能談談造成環比下降的主要因素是什麼嗎？在通常季節性疲軟的第四季度，對於出貨量環比變化的合理假設是什麼？

I don't think we typically will project future shipments. But you're right, shipments in the third quarter were off a little. We build inventory and principally is amount of transportation, just getting rail and trucks to move that material. We would expect, for sure, though, that -- to move that in the fourth quarter.

我認為我們通常不會預測未來的出貨量。但你是對的，第三季的出貨量略有下降。我們建立庫存，主要是運輸量，只是讓鐵路和卡車來運輸這些材料。不過，我們肯定預計在第四季實現這一目標。

Our next question today is coming from Curt Woodworth at Crédit Suisse.

今天我們的下一個問題來自瑞士信貸銀行的科特·伍德沃斯。

Mark, I wanted to get your thoughts on some of the different demand verticals. Obviously, we're hearing a lot of issues with respect to the supply chain chip shortages in auto, very long lead times in appliance, HVAC. And you kind of made the point that you felt the labor shortages, to some degree, we're actually bullish for fabrication just because it's kind of elongating maybe the pace at which these projects are going to get completed.

馬克，我想了解您對一些不同需求垂直領域的想法。顯然，我們聽到了很多關於汽車供應鏈晶片短缺、家電、暖通空調領域交貨時間過長的問題。你提到了一點，你感覺到勞動力短缺，在某種程度上，我們實際上看好製造業，因為這可能會延長這些項目完成的速度。

So the market, it seems like has softened a little bit here with lead times coming in. There could be some seasonality. So I was just wondering if you could maybe briefly walk us through what you're seeing on some of your key demand verticals.

因此，隨著交貨時間的到來，市場似乎已經軟化了一些。可能存在一定的季節性。所以我只是想知道您是否可以簡要地向我們介紹一下您在一些關鍵需求垂直領域所看到的情況。

Curt, I certainly will. And again, we are bullish, especially, we're not bullish across all our sectors. As you said and as I said, the construction that cycle has been extended, I do believe, incredibly healthy. And in part because those projects are just getting pushed out because of the shortage of labor and with the contractors and the builders I talked to across the country that they're all experiencing the same thing and they're all seeing long-term strength. So that's on the nonres construction side, we think it's very, very, very strong.

簡短地說，我當然會的。再說一遍，我們看好，特別是我們並不看好所有產業。正如你和我所說，我確實相信，這個週期的建設已經延長，非常健康。部分原因是這些項目由於勞動力短缺而被推遲，當我在全國各地與承包商和建築商交談時，他們都經歷著同樣的事情，並且都看到了長期的優勢。因此，在非資源建設方面，我們認為它非常、非常、非常強大。

In a way, in the automotive arena, you've seen a similar thing except it's the chip shortage that is slowing things down and we'll, in my humble opinion, extend that cycle dramatically. COVID itself cost us about 4.5 million units, and that has to get caught up. The pent-up demand out there, if you listen to the dealers is absolutely phenomenal.

在某種程度上，在汽車領域，你也看到了類似的情況，只不過晶片短缺導致速度放緩，而以我的拙見，我們將大幅延長這個週期。新冠疫情本身就讓我們損失了約 450 萬台設備，這點必須解決。如果你聽聽經銷商的說法，被壓抑的需求絕對是驚人的。

I was just talking to one dealer last week, he typically would have 1,600 vehicles in inventory right now, and he can only manage to get 100. And that experience is being shared with other dealers across the country. And the desire, the pent-up demand is absolutely there. And so that will maintain strength in the automotive arena. And in my humble opinion, when the chip shortage relieves itself, all they're going to do is just ramp up and maximize the output for the next couple of years because there's that much demand out there in my mind.

上週我剛和一位經銷商交談，他現在庫存通常有 1,600 輛車，但他只能拿到 100 輛。我們正在與全國各地的其他經銷商分享這項經驗。慾望、被壓抑的需求絕對存在。因此，這將保持汽車領域的實力。以我的拙見，當晶片短缺問題自行緩解時，他們要做的就是在未來幾年內提​​高產量並最大化產量，因為我認為需求量很大。

And then across other areas, residential was strong, HVAC appliance is strong. We're seeing a little strength -- a little more strength in the energy sector, more downhole kind of with the drilling rig as opposed to distribution pipe, that's still soft and it'll be soft for another year probably. Yellow goods is pretty strong. And just Engineering Bar, in general. Their customer base is expecting a 20% increase year-over-year. So that tends to give us some positive support too. So it's just generally a very, very, very strong demand scenario.

然後在其他領域，住宅表現強勁，暖通空調設備表現強勁。我們看到了一點力量——能源領域的力量更大，更多的是井下鑽機而不是分配管，這仍然很軟，而且可能會再軟一年。黃貨還是蠻強的。一般來說，只是工程酒吧。他們的客戶群預計將年增 20%。所以這也往往會給我們一些正面的支持。所以這通常是一個非常非常非常強烈的需求場景。

And then a quick follow-up. With respect to the buyback, when you look at the free cash flow profile and the balance sheet, I mean, you have very significant capability to continue to buy back stock here and your stock, at least on my numbers trading at the cheapest level I think it's ever traded. So just curious to kind of get your thoughts on maybe how you see the buyback going forward, will be opportunistic or more steady? And I'll leave it there.

然後快速跟進。關於回購，當你查看自由現金流狀況和資產負債表時，我的意思是，你有非常大的能力繼續回購這裡的股票和你的股票，至少從我以最便宜的水平交易的數據來看。認為它曾經被交易過。所以只是想知道您對未來回購的看法，是機會主義的還是更穩定的？我會把它留在那裡。

Great question. Yes, we feel very good about the capital structure and the foundation that the teams have been able to put into place. And so you've seen us be, we think, very active in the buyback -- with the buyback program in the second quarter with very similar activity in the third quarter. I think one should expect to see us continue to have a very steady pace unless we were to come up onto a time frame where we believe that there might be a better use for those funds through strategic growth of either organic or inorganic opportunities. So at this point in time, we believe we will be very active in the buyback program.

很好的問題。是的，我們對資本結構和團隊已經建立的基礎感到非常滿意。因此，我們認為，您已經看到我們在回購方面非常積極 - 第二季度的回購計劃與第三季的活動非常相似。我認為人們應該期望看到我們繼續保持非常穩定的步伐，除非我們達到一個時間框架，我們相信透過有機或無機機會的策略成長可能會更好地利用這些資金。因此，在這個時候，我們相信我們將非常積極地參與回購計劃。

Great. Congrats on all the success.

偉大的。祝賀一切成功。

Thank you.

謝謝。

Thanks.

謝謝。

Our next question today is coming from Andreas Bokkenheuser at UBS.

今天我們的下一個問題來自瑞銀集團的 Andreas Bokkenheuser。

Just a quick follow-up on the auto demand. So your auto volumes or auto steel volumes are pretty solid. Obviously, chip shortage is weighing on production. There's been some talk about the EAFs in the U.S., capturing market share from integrators, is that partly what's happening here? Are you seeing yourself capturing auto steel market share here from the integrators at this point in time?

只是汽車需求的快速跟進。所以你的汽車捲或汽車鋼捲是相當可靠的。顯然，晶片短缺正在給生產帶來壓力。有人談論美國的電弧爐從整合商手中奪取市場份額，這是否是這裡發生的部分情況？您是否認為自己目前正在從整合商手中奪取汽車鋼市場份額？

Well, we've over the last couple of years have steadily grown market share, particularly out of our Columbus facility. Butler has always been around 28% -- 30% automotive. Columbus, when we purchased it in 2015, had just incremental amount that's grown to probably, I don't know, Theresa, 300,000, 400,000 tons today. And I think we've got some unique products that bring value to the automotive supply chain.

嗯，過去幾年我們的市佔率穩定成長，尤其是在我們哥倫布工廠的市佔率。巴特勒一直在 28% - 30% 左右從事汽車業務。哥倫布，當我們在 2015 年購買它時，剛剛增加了數量，我不知道，特蕾莎，今天可能增長到 300,000、400,000 噸。我認為我們有一些獨特的產品可以為汽車供應鏈帶來價值。

But probably as importantly today is the sustainability story, particularly with the European auto maintenance. We've had a lot of traction with BMW, with VW, with Mercedes, in particular. And they view our sustainability model and our carbon footprint as being among the best in the world. And so that is sort of earned considerable business. And we're also benefiting and honestly from the USMCA. That increase in domestic content from [15% to 17%] has necessitated those European manufacturers to source internal to the U.S., and that's driven a lot of our success as well.

但今天可能同樣重要的是永續發展故事，尤其是歐洲汽車維修。我們與寶馬、大眾、特別是梅賽德斯有很大的吸引力。他們認為我們的永續發展模式和碳足跡是世界上最好的。這樣就贏得了可觀的生意。老實說，我們也從 USMCA 中受益。國內含量從 [15% 到 17%] 的增加使得那些歐洲製造商必須在美國內部採購，這也推動了我們的成功。

Okay. That's very clear. And maybe as a follow-up, I mean, obviously, there's some -- the auto contract negotiations going on. I'm not going to ask about pricing, but just in terms of timing, I mean, to what extent are you involved in all of this? And when do you usually see these things ramping up?

好的。這非常清楚。也許作為後續行動，我的意思是，顯然，有一些——汽車合約談判正在進行中。我不會問定價，但只是就時間而言，我的意思是，您在多大程度上參與了這一切？您通常什麼時候會看到這些事情增加？

I didn't hear.

我沒聽見。

Yes, the question is around the automotive contractors.

是的，問題是圍繞著汽車承包商的。

Yes. Typically or historically, automotive was the purview of the bastion of the integrated mills because they necessitate or mandated sort of an annual fixed price contract scenario. And with the variability in the scrap markets or the volatility of scrap markets, it's something the electric-arc-furnace producer couldn't stand.

是的。通常或歷史上，汽車業是綜合工廠的堡壘範圍，因為它們需要或強制執行年度固定價格合約方案。由於廢鋼市場的變化或廢鋼市場的波動，這是電弧爐生產商無法忍受的。

But given the volatility in 2015 and 2016 in pricing, the automotive folks saw that they left a lot of money on the table. And so they hedged between integrated and electric-arc-furnace supply chains today. The propensity of the automotive contract negotiations in the fall with the integrated producers not necessarily the electric-arc-furnace producers.

但考慮到 2015 年和 2016 年定價的波動，汽車業人士發現他們損失了很多錢。因此，他們今天在整合供應鏈和電弧爐供應鏈之間進行對沖。秋季與綜合生產商（不一定是電弧爐生產商）進行汽車合約談判的傾向。

Our next question today is coming from Tristan Gresser at Exane BNP Paribas.

今天我們的下一個問題來自法國巴黎銀行的 Tristan Gresser。

And maybe following up on the previous one, you obviously have near-term targets to cut your emissions, carbon emission and some peers in Europe have tied their decarbonization savings to create new commercial offering of low carbon steel products that sell premium with good demand from companies to keep looking to cut their scope 3 emission. Is that also something you would consider? And do you see a similar market emerging for low carbon steel products in the U.S.?

也許繼上一個之後，您顯然有減少排放的近期目標，歐洲的一些同行已將其脫碳節省掛鉤，以創造新的低碳鋼產品商業產品，這些產品在需求旺盛的情況下銷售溢價公司繼續尋求減少範圍3 的排放。這也是你會考慮的事情嗎？您是否認為美國也會出現類似的低碳鋼產品市場？

Well, you've seen just recently folks pursuing that direction. I would say for SDI to date, we've been the beneficiary of, again, capturing greater market share and haven't necessarily leveraged that to higher pricing as of this moment in time. I would imagine, though, with -- over time, you could see a differentiation there.

嗯，你最近才看到人們在追求這個方向。我想說，迄今為止，SDI 一直是獲得更大市場份額的受益者，但截至目前，我們還沒有必要利用這一市場份額來提高定價。不過，我想，隨著時間的推移，你會看到那裡的差異。

All right. That's helpful. And maybe just 1 question on market conditions and the pricing of the outlook. You have imports surging in the U.S., inventories building. And of course, this new capacity that is going to ramp up. The forward curve in U.S. HRC is around 1,300 by March next year. I think in previous call, you were a bit more -- probably bullish on the near term. Has anything changed to your view in the supply and demand dynamics at the moment that could warrant this drop in steel prices?

好的。這很有幫助。也許只有一個關於市場狀況和前景定價的問題。美國的進口激增，庫存增加。當然，這種新產能將會增加。到明年 3 月，美國 HRC 的遠期曲線約為 1,300。我認為在之前的電話會議中，您可能對近期持樂觀態度。您對目前供需動態的看法是否發生了任何變化，導致鋼材價格下跌？

Well, there's absolutely no doubt that demand is there. I wouldn't necessarily characterize the imports as surging unnecessarily. Certainly, Galvalume and pre-paint Galvalume is very, very strong, I'll give you that. But today, we saw some offers from Vietnam for April, May delivery. So the way, way, way out at around $1,500. So I would imagine pricing will turn over to some degree or I use the word erode. But it's not going to be a massive reduction. The market cynics out there that are suggesting that average pricing for the year is $740 a ton or $750. I just can't see that happening with the demand picture the way it is today.

嗯，毫無疑問，需求是存在的。我不一定認為進口量激增是不必要的。當然，鍍鋁鋅和預塗鍍鋁鋅非常非常堅固，我可以告訴你。但今天，我們看到了一些來自越南的四月、五月交貨的報價。所以，價格在 1,500 美元左右。所以我想定價會在某種程度上發生轉變，或者我使用「侵蝕」這個詞。但這不會是大幅減少。市場憤世嫉俗者表示今年的平均價格為每噸 740 美元或 750 美元。我只是看不到今天的需求圖會發生這種情況。

Our next question today is coming from Timna Tanners at Wolfe Research.

今天我們的下一個問題來自 Wolfe Research 的 Timna Tanners。

I just wanted to follow up on New Process. I'll just ask 1 question with 2 parts, if I could. New Process is a big, I guess, a bit of a deviation. It's acquiring 1 of your customers or at least partly. And I know in the past, there's been some trepidation over that, partly because you kind of compete with your other customers. So I just wanted your thoughts on that.

我只是想跟進新流程。如果可以的話，我只會問 1 個包含 2 個部分的問題。我想，新流程是一個很大的偏差。它正在獲取您的 1 個客戶或至少部分客戶。我知道過去人們對此感到有些擔憂，部分原因是你在與其他客戶競爭。所以我只是想聽聽你對此的想法。

And on the 1 hand, if you're concerned about the message it sends to other customers. And second, I wanted to ask if this is a new opportunity for Steel Dynamics to continue to move downstream into kind of more of the processing going forward with further capital allocation in that regard?

一方面，如果您擔心它發送給其他客戶的訊息。其次，我想問這對 Steel Dynamics 來說是否是一個新的機會，可以繼續向下游轉移，進行更多的加工，並在這方面進行進一步的資本配置？

Well, I'd want to emphasize that I wouldn't necessarily look at the acquisition as a change in strategy for us. We certainly don't want to get into the service center business per se. We would be probably lousy in the service center business, to be honest. The -- as I said earlier, there are 2 principal objectives. One, New Process grew to a very large customer in the value-add pre-paint sort of supply chain and just wanted to secure that supply chain or that outlet to OEM's way into the future. And then secondly, we were looking for a sort of a platform of growth for manufacturing, downstream manufacturing. And that aligns -- New Process aligns well with that strategy, particularly in Mexico.

嗯，我想強調的是，我不一定將這項收購視為我們策略的改變。我們當然不想涉足服務中心業務本身。老實說，我們的服務中心業務可能會很糟糕。正如我之前所說，有兩個主要目標。第一，New Process 已成為加值預塗裝供應鏈中的一個非常大的客戶，並且只是想確保該供應鏈或 OEM 的出口進入未來。其次，我們正在尋找一個製造業、下游製造業的成長平台。新流程與該策略非常一致，特別是在墨西哥。

Our next question today is coming from Andrew Keches at Barclays.

今天我們的下一個問題來自巴克萊銀行的安德魯凱奇斯。

Just 1 to put a finer point on the capital allocation priorities here. But Theresa, you've gradually been refinancing the yield (inaudible) bonds and you have 1 left that's callable here in the fourth quarter. Should we expect that refinancing trend to continue? Or I guess, considering the outlook for cash flow, is there any consideration to possibly just paying that down, get yourselves to an even stronger balance sheet position going forward?

1 是為了更詳細地闡述此處的資本配置優先事項。但是特蕾莎，您已經逐漸對收益（聽不清楚）債券進行再融資，您還剩 1 隻債券可以在第四季度贖回。我們是否應該預期再融資趨勢會持續下去？或者我想，考慮到現金流的前景，是否有考慮可能只是支付這筆費用，讓自己在未來獲得更強勁的資產負債表狀況？

So it's a great question. You're right that it's a $400 million tranche and it has, I think, a 5% rate attached to it. The investment grade market has been very supportive of Steel Dynamics, and we're very excited to be in that market today. So we are very comfortable, I guess, the first point with the debt structure that we have. We really manage to a through-cycle basis at a leverage of 2x or less. So obviously, we're much less than that today. But we're managing to through cycles. I can't give you specifics because I would get in trouble if I did, but there is an opportunity to either repay or refinance and we'll be making that decision here in the near term.

所以這是一個很好的問題。你說得對，這是一筆 4 億美元的資金，而且我認為附加了 5% 的利率。投資等級市場一直非常支持 Steel Dynamics，我們很高興今天能夠進入該市場。所以我想，我們對我們現有的債務結構的第一點感到非常滿意。我們確實能夠以 2 倍或更低的槓桿率實現整個週期的目標。很明顯，我們現在的情況比現在少很多。但我們正在設法度過週期。我無法向您提供具體細節，因為如果這樣做我會遇到麻煩，但有機會償還或再融資，我們將在短期內做出決定。

This concludes our question-and-answer session. I'd like to turn the call back over to Mr. Millett for any closing remarks.

我們的問答環節到此結束。我想將電話轉回給米利特先生，讓他作結束語。

Well, thank you, Kate. And I just would like to emphasize to everyone on the call, our customers, our service providers and particularly our team, thank you for your support. It was an absolutely phenomenal quarter. We're going to see another one in the fourth quarter, and it's only driven by, again, each and every one of you is supporting our company, Steel Dynamics. We will endeavor to continue our growth trajectory going forward and creating even greater shareholder value and wealth. So thank you, and everyone out there, be safe.

好吧，謝謝你，凱特。我想向通話中的每個人、我們的客戶、我們的服務提供者，特別是我們的團隊強調，感謝你們的支持。這絕對是一個非凡的季度。我們將在第四季度看到另一場比賽，而這一切都是由你們每一個人對我們公司 Steel Dynamics 的支持所推動的。我們將努力繼續我們的成長軌跡，創造更大的股東價值和財富。所以謝謝你們，大家注意安全。

Thank you. Ladies and gentlemen, this does conclude today's event. You may disconnect at this time, and have a wonderful day. Thank you for your participation.

謝謝。女士們、先生們，今天的活動到此結束。此時您可能會斷開連接，並度過美好的一天。感謝您的參與。