Steel Dynamics Inc (STLD) 2021 Q2 法說會逐字稿

Good day, and welcome to the Steel Dynamics' Second Quarter 2021 Earnings Conference Call. (Operator Instructions) Please be advised that this call is being recorded today, July 20, 2021, and your participation implies consent to our recording this call. If you do not agree to these terms, please disconnect.

美好的一天，歡迎參加 Steel Dynamics 2021 年第二季財報電話會議。 （操作員說明）請注意，本次通話將於今天（2021 年 7 月 20 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。

At this time, I would like to turn the conference over to David Lipschitz, Director of Investor Relations. Please go ahead.

現在，我想將會議交給投資者關係總監 David Lipschitz。請繼續。

Thank you, Darryl. Good morning, and welcome to Steel Dynamics' Second 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, President 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，達裡爾。早安，歡迎參加 Steel Dynamics 2021 年第二季財報電話會議。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、總裁兼執行長 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 later SEC through our 10-Q. You will also find any referenced non-GAAP financial measures reconciled to the most directly comparable GAAP measures in the press release issued yesterday entitled Steel Dynamics Reports Record second quarter 2021 results. And now I'm pleased to turn the call over to Mark.

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。相關新聞稿以及我們每年提交的 SEC 10-K 表格中「前瞻性陳述和風險因素」標題下描述了此類範例。可在互聯網 www.sec.gov 上找到，如果適用，還可透過我們的 10-Q 在稍後的 SEC 中找到。您還可以在昨天發布的題為“Steel Dynamics 報告記錄 2021 年第二季度業績”的新聞稿中找到任何引用的非 GAAP 財務指標，這些指標與最直接可比的 GAAP 指標一致。現在我很高興將電話轉給馬克。

Thank you, David, and good morning. Welcome to our second quarter '21 earnings call. We appreciate your time, and thank you for joining us today. The entire Steel Dynamics team delivered yet another phenomenal performance, was filled with operating and financial records including record sales, operating income, cash flow and adjusted EBITDA.

謝謝你，大衛，早安。歡迎參加我們的 21 年第二季財報電話會議。感謝您抽出寶貴的時間，並感謝您今天加入我們。 Steel Dynamics 整個團隊再次取得了驚人的業績，充滿了營運和財務記錄，包括創紀錄的銷售額、營運收入、現金流和調整後的 EBITDA。

The tremendous performance driven by the dedication and passion of our teams executing on our long-term strategies that will continue to drive higher through-cycle earnings. The team is delivering exceptional results, and I'm very proud to be among them.

我們團隊執行長期策略的奉獻精神和熱情推動了巨大的業績，這將繼續推動更高的整個週期收益。團隊正在取得卓越的成果，我很自豪能成為其中之一。

Due to the continued 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 their continued commitment to safety.

由於我們的團隊對彼此、家人和客戶的持續承諾，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，我感謝他們每個人對安全的持續承諾。

Record financial results are a little important and lets everyone goes home safely at the end of each day. The number of injuries and associated severity improved in the first half of '21 compared to last year.

創紀錄的財務表現有點重要，它可以讓每個人在每天結束時安全回家。與去年相比，21 年上半年受傷人數和相關嚴重程度有所改善。

The teams are focused on reducing hazardous practices that could result in significant injury. Nothing is more important than the health and safety of our people. It is our #1 value. Our safety performance continues to be significantly better than industry averages, but our intent will always be to have 0 incidents.

這些團隊致力於減少可能導致嚴重傷害的危險行為。沒有什麼比我們人民的健康和安全更重要。這是我們的第一價值觀。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。

To achieve this, we must all be continuously aware of our surroundings and our fellow team members, keeping safety top of mind in order to take control of safety.

為了實現這一目標，我們所有人都必須不斷意識到我們的周圍環境和我們的團隊成員，並將安全放在首位，以便控制安全。

Our commitment to all aspects of sustainability is embedded in our founding principles woven into the fabric of our company: Valuing the health and safety of our teams, partnering with customers our, supporting our communities and minimizing our environmental footprint. An extension of this commitment is evidenced in our recent announcement concerning goals for greenhouse gas emissions reduction and renewable energy milestones, including a goal for our steel mills to be carbon neutral by 2050.

我們對永續發展各個方面的承諾融入了我們公司的創立原則中：重視我們團隊的健康和安全，與客戶合作，支持我們的社區，並最大限度地減少我們的環境足跡。我們最近宣布的溫室氣體減排目標和再生能源里程碑證明了這項承諾的延伸，其中包括我們的鋼廠在 2050 年實現碳中和的目標。

We have been a leader in the area of sustainability for more than 25 years, and we plan to stay right in that position. We are starting from a place of strength with already industry low Scope 1 and 2 carbon emissions yet we plan to do more. As we progress on this strategic path, we will plan to share our outcomes with you. But now Theresa will now share insights into our recent performance.

25 年來，我們一直是永續發展領域的領導者，我們計劃保持這一地位。我們的出發點是，範圍 1 和範圍 2 的碳排放量已經處於行業較低水平，但我們計劃做得更多。隨著我們在這條策略道路上取得進展，我們將計劃與您分享我們的成果。但現在特蕾莎將分享對我們最近表現的見解。

Good morning, everyone. I'd like to add my sincere appreciation and congratulations to our entire Steel Dynamics's team. As Mark said, we achieved numerous milestones, attained record second quarter performance with record revenues of $4.5 billion derived from record quarterly steel shipments, record fabrication shipments and strong product pricing across all of our operating platforms.

大家，早安。我謹向我們整個 Steel Dynamics 團隊致以誠摯的謝意和祝賀。正如馬克所說，我們實現了許多里程碑，第二季度業績創下歷史新高，營收達到創紀錄的45 億美元，這得益於我們所有營運平台創紀錄的季度鋼材出貨量、製造出貨量和強勁的產品定價。

We achieved record quarterly operating income of $956 million and net income of $702 million or $3.32 per diluted share. and record cash flow from operations of $587 million, with record quarterly adjusted EBITDA of $1 billion. A truly extraordinary performance.

我們實現了創紀錄的季度營業收入 9.56 億美元，淨利潤為 7.02 億美元，即稀釋後每股收益 3.32 美元。營運現金流達到創紀錄的 5.87 億美元，季度調整後 EBITDA 創紀錄的 10 億美元。真正非凡的表演。

Our second quarter 2021 results included costs of approximately $23 million or $0.08 per diluted share associated with the construction of our Sinton, Texas flat-rolled steel mill. Excluding these costs, second quarter 2021 adjusted net income was $719 million or $3.40 per diluted share.

我們 2021 年第二季的業績包括與德州 Sinton 扁鋼廠建設相關的成本約為 2,300 萬美元，即稀釋後每股 0.08 美元。排除這些成本，2021 年第二季調整後淨利為 7.19 億美元，即稀釋後每股收益 3.40 美元。

Our second quarter revenues of $4.5 billion were 26% higher than sequential first quarter results, with growth from all of our operating platforms, but most significantly from our steel operations based on record shipments and continued strong flat-rolled steel selling values.

我們第二季的營收為45 億美元，比第一季環比成長26%，成長來自我們所有的營運平台，但最重要的是我們的鋼鐵業務基於創紀錄的出貨量和持續強勁的扁鋼銷售價值。

Our second quarter 2021 operating income was $956 million, 61% higher than the first quarter results, also driven by strong flat-rolled steel pricing and robust demand more than offsetting increased scrap costs.

我們的 2021 年第二季營業收入為 9.56 億美元，比第一季業績成長 61%，這也是受到強勁的扁鋼定價和強勁需求的推動，足以抵消廢鋼成本的增加。

As we discuss our business this morning, we continue to see positive industry fundamentals for 2021 and 2022, and we're confident in our forthcoming unique earnings catalyst. Our steel operations generated over $1 billion of operating income in the second quarter, 59% greater than first quarter sequential earnings as flat-rolled steel selling values continued to strengthen. We also saw expanded margins throughout operations due to improved pricing and volume. We achieved record quarterly steel shipments of 2.9 million tons, and our steel mills operated at 91% of their capability.

當我們今天早上討論我們的業務時，我們繼續看到 2021 年和 2022 年積極的行業基本面，並且我們對即將到來的獨特盈利催化劑充滿信心。由於扁鋼銷售價值持續走強，我們的鋼鐵業務第二季營業收入超過 10 億美元，比第一季季增 59%。由於定價和銷售的改善，我們也看到整個營運的利潤率有所擴大。我們的季度鋼材出貨量達到創紀錄的 290 萬噸，鋼廠開工率為 91%。

We still have additional steel market opportunity based on our existing annual steel shipping capability of over 13 million tons. And when our new Texas steel mill is fully online, we'll have over 6 million tons of availability.

基於我們現有超過1300萬噸的年鋼材運輸能力，我們仍然擁有額外的鋼材市場機會。當我們位於德克薩斯州的新鋼廠全面投產後，我們將擁有超過 600 萬噸的產能。

Operating income from our mills recycling operations was $51 million, aligned with strong first quarter performance as domestic steel production improved, further supporting ferrous scrap demand and pricing. 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 by reducing company-wide working capital requirements.

我們工廠回收業務的營業收入為 5,100 萬美元，與第一季的強勁表現一致，因為國內鋼鐵產量有所改善，進一步支撐了黑色金屬廢料的需求和定價。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鋼來提高鋼鐵和金屬回收業務，從而提高熔爐效率並減少全公司的營運資金需求。

Our fabrication operations once again achieved record shipments and expanded margins in the quarter as realized selling values more than offset continued higher steel input costs. Operating income was $28 million versus first quarter earnings of $10 million.

我們的製造業務在本季再次實現創紀錄的出貨量和擴大的利潤，因為實現的銷售價值足以抵消持續上漲的鋼鐵投入成本。營業收入為 2,800 萬美元，而第一季獲利為 1,000 萬美元。

Steel joists and deck demand remains very strong as evidenced by our record customer order backlog and continued robust order activity. We expect steel fabrication earnings to continue to increase through the remainder of the year.

我們創紀錄的客戶訂單積壓和持續強勁的訂單活動證明了鋼托樑和甲板的需求仍然非常強勁。我們預計今年剩餘時間鋼鐵製造利潤將持續成長。

Our cash generation continues to be strong based on our differentiated business model and highly variable cost structure. At the end of the second quarter, we had liquidity of $2.3 billion, comprised of cash of $1.1 billion and our fully available unsecured revolver of $1.2 billion.

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。截至第二季末，我們的流動性為 23 億美元，其中包括 11 億美元現金和 12 億美元完全可用的無擔保左輪手槍。

During the second quarter of 2021, we generated record cash flow from operations of $587 million and $849 million during the first 6 months of the year, also a record. Working capital grew over $700 million in the first half of 2021 and due to higher prices resulting in increased customer count and inventory values.

2021 年第二季度，我們的營運現金流量創歷史新高，分別為 5.87 億美元和 8.49 億美元，今年前 6 個月也創下歷史新高。 2021 年上半年，由於價格上漲導致客戶數量和庫存價值增加，營運資本增加超過 7 億美元。

During the first half of 2021, we've invested $587 million in capital investment, of which $489 million was invested in our new Texas flat-rolled steel mill. For the second half of 2021, we estimate capital investments will be roughly between $350 million and $400 million, of which the Texas Steel mill represents an estimated $300 million.

2021年上半年，我們已投入5.87億美元的資本投資，其中4.89億美元投資於我們新的德州扁鋼廠。我們預計 2021 年下半年的資本投資將大致在 3.5 億至 4 億美元之間，其中德州鋼鐵廠的資本投資估計為 3 億美元。

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 $393 million of our common stock representing 3% of outstanding shares. In July, we announced the Board's approval of an additional $1 billion share repurchase authorization, demonstrating our confidence in Steel Dynamics' future cash flow generation.

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 3.93 億美元的普通股，佔已發行股票的 3%。 7 月，我們宣布董事會批准額外 10 億美元的股票回購授權，顯示我們對 Steel Dynamics 未來現金流產生的信心。

Since 2016, we've increased our cash dividend per share over 85%, and we've repurchased over $1.6 billion of common stock, representing 19% of our outstanding shares. While during the same time frame, we achieved an investment-grade credit rating and maintained our growth company profile by investing $2.8 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.

自 2016 年以來，我們將每股現金股利增加了 85% 以上，並回購了超過 16 億美元的普通股，占我們已發行股票的 19%。同時，我們透過投資 28 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、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 that's complemented with a variable share repurchase program. 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，其中包括基礎正股息，並輔以可變股票回購計畫。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 and have been since our founding.

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。自成立以來，我們一直致力於以最高的誠信經營我們的業務。

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. To increase transparency, we have set interim milestones for 2025 and 2030. As Mark said, we've led this steel industry with our exclusive use of EAF technology, circular manufacturing model and innovative solutions to increase efficiencies, reduce raw material usage, reuse secondary materials and promote material conservation and recycling.

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，包括我們的鋼廠在2050 年實現碳中和的目標。為了提高透明度，我們設定了2025 年和2030 年的中期里程碑。正如馬克所說，我們透過獨家使用電弧爐技術、循環製造模式和創新解決方案引領鋼鐵業，以提高效率、減少原材料使用、再利用二次材料並促進材料節約和回收。

We plan to sustain our leadership position by executing our sustainability 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 path that is more manageable and we believe considerably less expensive than what may lay ahead for the traditional blast furnace industry.

我們計劃透過其他途徑執行我們的永續發展目標、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。我們有一條更易於管理的可行路徑，我們相信比傳統高爐行業未來的成本要低得多。

Our sustainability and environmental impact strategy is an ongoing journey, and we are moving forward with the intention to make a positive difference. We plan to continue to address these matters and to play a leadership role in developing innovative ways to reduce our impact on the environment.

我們的永續發展和環境影響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，並在開發創新方法以減少對環境的影響方面發揮領導作用。

Additionally, for those that track our individual flat-rolled steel shipments In the second quarter, our hot rolled and our P&O sales or shipments, excuse me, were 719,000 tons, our cold-rolled shipments were 150,000 tons and our coated shipments were 1,055,000 tons. With that, Mark?

此外，對於那些追蹤我們個別扁鋼出貨量的人來說，第二季度，我們的熱軋鋼和P&O 銷售或出貨量為719,000 噸，我們的冷軋出貨量為150,000 噸，我們的塗層出貨量為1,055,000 噸。就這樣，馬克?

Super. Thanks, Theresa. I'll just add a little more color to each operating platform. The steel fabrication platform delivered a strong performance again achieving record quarterly shipments and almost tripling sequential operating income.

極好的。謝謝，特蕾莎。我只是為每個操作平台添加一點色彩。鋼鐵製造平台再次表現強勁，季度出貨量創歷史新高，營業收入幾乎增加了兩倍。

Based on the strength of steel joist and deck in demand, increased product pricing is more than offsetting the continued rise in steel input costs. Order activity continues to be extremely strong. We again ended the quarter with a record fabrication order backlog at levels considerably higher than historical peaks. 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 dynamic will continue for the next several years as we see long lasting changes in consumer behavior.

基於鋼托樑和甲板的需求強勁，產品定價的上漲足以抵銷鋼材投入成本的持續上漲。訂單活動持續極為強勁。本季結束時，我們再次創下了創紀錄的製造訂單積壓水平，遠高於歷史高峰。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，隨著我們看到消費者行為發生長期持久的變化，這種動態將在未來幾年持續下去。

As we mentioned last quarter, we've hired additional people and expanding operating hours at our several steel fabrication locations in order to meet increased customer demand. These changes should increase annual production capability by well over 100,000 tonnes.

正如我們上季度所提到的，我們在幾個鋼鐵製造工廠僱用了更多人員並延長了營業時間，以滿足不斷增長的客戶需求。這些變化將使年產能增加超過 10 萬噸。

Our metals recycling operations had an extremely strong quarter with quarterly operating income of $51 million. Strong ferrous demand and increased pricing related to higher domestic steel production drove strong performance. Prime scrap index pricing average increased $60 to $70 per gross ton during the quarter.

我們的金屬回收業務本季表現非常強勁，季度營業收入為 5,100 萬美元。強勁的黑色金屬需求以及與國內鋼鐵產量增加相關的定價上漲推動了強勁的業績。本季優質廢鋼指數平均定價每總噸上漲 60 美元至 70 美元。

Prime scrap generation has been solid based on strong North American manufacturing. We expect U.S. scrap generation and alternative iron unit production to keep pace with the increased demand from steelmaking in the coming years.

基於北美製造業的強勁，優質廢鋼的產生量一直很穩定。我們預計未來幾年美國廢鋼生產和替代鐵裝置生產將跟上煉鋼需求成長的步伐。

Additionally, we believe China's scrap reservoir will grow considerably over the next 3 to 5 years, offsetting their expanding EAF capability while providing additional global raw material supply. We believe metallics' pricing in general has peaked and scrap will remain flat in the coming quarter.

此外，我們認為中國的廢鋼儲量將在未來 3 至 5 年內大幅成長，抵銷其不斷擴大的電弧爐產能，同時提供額外的全球原料供應。我們認為，金屬價格總體已見頂，廢鋼價格在下一季將保持穩定。

The Steel team had an outstanding quarter, continuing to achieve numerous operating and financial records, including record shipments of 2.9 million tons and record operating income of over $1 billion.

Steel 團隊度過了一個出色的季度，繼續創造多項營運和財務記錄，包括創紀錄的 290 萬噸出貨量和創紀錄的超過 10 億美元的營運收入。

While the domestic steel industry operated at a utilization rate of 81%, our steel mills operated 91% during the second quarter, slightly lower than our first quarter rate of 93%. In June, we experienced the burn through in 1 of our furnaces at our Columbus Flat Roll steel mill. Importantly, no one on the team was injured. The resulting outage though lasted about 10 days, impacting second quarter production and shipments by about 60,000 tonnes and 30,000 tonnes, respectively.

雖然國內鋼鐵業開工率為81%，但我們的鋼廠第二季開工率為91%，略低於第一季93%的開工率。六月，我們哥倫布扁鋼廠的一台熔爐發生了燒穿事故。重要的是，球隊中沒有人受傷。由此造成的停電持續了約 10 天，第二季的產量和出貨量分別受到約 6 萬噸和 3 萬噸的影響。

Columbus is now again fully operational.

哥倫布現已再次全面投入營運。

Fuel demand is strong across our entire steel platform. Our long product steel operations achieved increased shipments at all of their locations with the Structural and Rail division achieving record quarterly volume. The flat-rolled steel markets remain especially tight.

我們整個鋼鐵平台的燃料需求強勁。我們的長材鋼材業務在所有地點的出貨量均實現成長，結構和鐵路部門的季度出貨量創歷史新高。扁鋼市場仍然特別緊張。

Strong demand, coupled with extremely low customer inventory levels across the supply chain continue to support flat rolled steel prices above historical peaks. Customers are placing orders for immediate demand requirements and have not had the ability to rebuild inventory.

強勁的需求加上整個供應鏈極低的客戶庫存水準繼續支撐扁鋼價格高於歷史高峰。客戶下訂單是為了滿足即時需求，但沒有能力重建庫存。

Additionally, the speculative risk associated with the accumulation of higher-priced inventory is also a significant deterrent to procuring imports. We believe current legislative steel trade policies, such as the Section 201 Cases imposed in 2015, 2016, and subsequent anticircumvention restrictions will continue to keep steel imports at moderated levels.

此外，與高價庫存累積相關的投機風險也是採購進口的重大障礙。我們認為，目前的鋼鐵貿易立法政策，例如2015年、2016年實施的201調查以及隨後的反規避限制將繼續使鋼鐵進口保持在適度水平。

The current U.S. administration has also commented constructively concerning trade parameters and the issues created by China's steelmaking overcapacity. Regarding the ongoing negotiations between the U.S. and the EU and revoking 232 tariffs, we expect the final agreement will include import surge protections to protect U.S. national security goals. Aside from Turkey, Europe has never been a significant import source, and we have long thought and we have long thought collaborating with them against China and other Asian export-based economies that are the greatest contributors to global overcapacity, is the most effective path to fair trade.

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發表了建設性評論。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進口激增保護，以保護美國的國家安全目標。除了土耳其外，歐洲從來都不是重要的進口來源地，我們長期以來一直認為，與他們合作對抗中國和其他亞洲出口型經濟體（這些經濟體是全球產能過剩的最大根源）是解決全球產能過剩問題的最有效途徑。公平貿易。

From an end market perspective, the automotive sector is operating at solid production levels due to low inventories coupled with strong consumer demand. Current build rate forecast for the '22 and '23 are at 17 million units, representing a very strong outlook. Auto inventories are 55% below the 5-year average and at the lowest supply level in over 35 years. And additionally, at this point, we have been fortunate that our automotive order book has not seen any significant impact from the ongoing electronic chip shortage.

從終端市場的角度來看，由於庫存較低以及消費者需求強勁，汽車產業的生產水準穩定。目前 '22 和 '23 的建造量預測為 1700 萬套，前景非常樂觀。汽車庫存比 5 年平均低 55%，供應水準處於 35 年來的最低水準。此外，目前我們很幸運，我們的汽車訂單尚未受到持續的電子晶片短缺的任何重大影響。

The nonresidential construction sector remains strong as evidenced by our record Structural and Rail division shipments, record steel fabrication shipments and strong long product steel order backlogs. We expect this strength to continue through the rest of this year and into next.

非住宅建築業依然強勁，我們創紀錄的結構和鐵路部門出貨量、創紀錄的鋼材製造出貨量和強勁的長材訂單積壓證明了這一點。我們預計這種勢頭將持續到今年剩餘時間和明年。

Residential construction has always been strong, resulting in high demand for HVAC, appliances and other related products.

住宅建設一直強勁，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 and yellow goods customers at our Engineered Bar Products Division. And more recently, we have finally seen some indications of an improved energy sector as global energy prices have improved.

我們的工程酒吧產品部門也看到採礦和黃色商品客戶的健康需求。最近，隨著全球能源價格的上漲，我們終於看到了能源產業改善的一些跡象。

We've executed numerous strategic investments across the company in the last several years, and we continue to position Steel Dynamics for the future. We and our customers continue to be extremely excited about our Sinton, Texas electric arc furnace flat-rolled steel mill investment. It represents transformational, competitively advantaged strategic growth. with associated long-term value creation for all of our study quotes. It provides lower carbon emitting next-generation EAF steel production capabilities, new products and new customers.

過去幾年，我們在整個公司範圍內進行了大量策略性投資，並將繼續為 Steel Dynamics 的未來定位。我們和我們的客戶仍然對我們在德克薩斯州辛頓電弧爐扁鋼廠的投資感到非常興奮。它代表了變革性的、具有競爭優勢的策略成長。為我們所有的研究引言創造相關的長期價值。它提供低碳排放的下一代電爐鋼生產能力、新產品和新客戶。

The 3 million tons state-of-the-art facility is designed to have product capabilities beyond that of existing electric arc furnace flat roll steel producers, competing even more effectively with higher carbon emitting integrated steel facilities and high carbon foreign competition. It provides us with broader steel portfolio while providing our customers with an even larger climate conscious supply option.

這座年產能 300 萬噸、最先進的工廠旨在擁有超越現有電弧爐扁鋼生產商的產品能力，從而更有效地與高碳排放綜合鋼鐵工廠和高碳外國競爭對手競爭。它為我們提供了更廣泛的鋼鐵產品組合，同時為我們的客戶提供了更大的氣候意識供應選擇。

The electric arc furnished production rate is by far the most sustainable, environmentally friendly supply chain and our their lowest carbon footprint. We are currently hot commissioning, the 250,000 tonne paint line, and we expect the 550,000-ton galvanizing line with Galvalume-coating capability to be operational next month.

電弧設備的生產率是迄今為止最永續、最環保的供應鏈，也是我們最低的碳足跡。目前，我們的 25 萬噸塗裝線正在熱調試中，預計具有鍍鋁鋅能力的 55 萬噸鍍鋅線將於下個月投入運作。

The entire Sinton team is doing a tremendous job. But due to the excessive heavy rains experienced in Texas over the last several months, actual steel production at Sinton is not likely to begin until mid-fourth quarter of this year. Theresa shared our views concerning shipments and through-cycle earnings capability of this new steel mill. It's truly a transformational project. And we are just at the edge of seeing the tremendous benefits it will bring to us, our teams, our customers and our stakeholders.

整個 Sinton 團隊做得非常出色。但由於過去幾個月德州經歷了過多的暴雨，辛頓的實際鋼鐵生產要到今年第四季中期才可能開始。特蕾莎分享了我們對這家新鋼廠的出貨量和整個週期獲利能力的看法。這確實是一個轉型計畫。我們即將看到它將為我們、我們的團隊、我們的客戶和我們的利害關係人帶來的巨大好處。

The town of Sinton provides a strategic location near Corpus Christi, with regional commercial markets representing over 27 million tons of relevant flat-rolled steel consumption in the U.S. and Mexico as customers are excited to have freight advantaged regional flat-rolled steel supplier. We currently have 5 customers committed to locate on site, representing over 1.5 million tons of annual processing and consumption capability. Based on our location with much shorter lead times, we can provide a superior customer supply chain solution. It also allows us to effectively compete with imports coming into Houston and the West Coast, which inherently have long lead times and speculative price risk.

辛頓鎮在科珀斯克里斯蒂附近擁有戰略位置，區域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，因為客戶對擁有貨運優勢的區域扁鋼供應商感到興奮。目前我們已簽約客戶5家，年加工消費量超過150萬噸。基於我們的地理位置和更短的交貨時間，我們可以提供卓越的客戶供應鏈解決方案。它還使我們能夠有效地與進入休士頓和西海岸的進口產品競爭，這些地區本來就具有較長的交貨時間和投機價格風險。

We have also made considerable progress concerning our raw material procurement strategy for Sinton. We completed the acquisition of a Mexican scrap company last August, a critical step. The operations are strategically located near high-volume industrial scrap sources throughout Central and Northern Mexico. They have an estimated annual scrap processing capability of almost 2 million gross tons. And we also acquired 3 smaller scrap locations in the Houston and Corpus Christi area, which we did the last quarter.

我們在 Sinton 的原物料採購策略方面也取得了相當大的進展。去年八月，我們完成了對一家墨西哥廢料公司的收購，這是關鍵的一步。這些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。據估計，他們的年廢鋼加工能力接近 200 萬噸。我們還在休士頓和科珀斯克里斯蒂地區收購了 3 個較小的廢品處理地點，這是我們上個季度完成的。

Our performance-based operating culture, coupled with our considerable experience in successfully constructing and operating highly profitable steel mills, positions us incredibly well to successfully execute this transformational growth. 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 an import alternative to a region in need of options.

我們以績效為基礎的營運文化，加上我們在成功建造和營運高利潤鋼廠方面的豐富經驗，使我們能夠成功地實現這一轉型成長。我們不僅僅是增加扁鋼產能，我們還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進口替代方案。

We also recently announced plans to have 4 additional value-add flat-rolled coating lines, comprised of 2 new paint lines and 2 new galvanizing lines with Galvalume-coating capability. Our preferred supply chain has resulted in our existing lines consistently running at full capacity through both increased consumption and market share gain.

我們最近也宣布計劃增設 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。我們首選的供應鏈使我們現有的生產線透過增加消耗和增加市場份額而持續滿載運作。

2 of the new lines will be in the Southern U.S. region to support Sinton. The other 2 lines will be in the Midwest and will also be comprised of a new paint line and galvanizing line with a combined annual capacity of 540,000 tonnes. These lines will support our regional flat-rolled steel operations, providing them with more value-add product diversification to serve our customer needs. We currently believe these lines will be beginning -- or will begin operations in the second half of 2022.

其中 2 條新線路將位於美國南部地區，為 Sinton 提供支援。另外兩條生產線將位於中西部，包括一條新的油漆生產線和鍍鋅生產線，年產能合計為 54 萬噸。這些生產線將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，以滿足我們客戶的需求。我們目前認為這些線路將開始運營，或將於 2022 年下半年開始運營。

Our strategy consistently places value-added products and supply chain differentiation of the 4 and its benefit as well.

我們的策略始終將增值產品和供應鏈差異化放在第四位及其優勢上。

In closing, our business model and execution of our long-term strategy continues to strengthen our financial position through strong cash flow generation, demonstrating our sustainability and differentiating us from our competition.

最後，我們的業務模式和長期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。

Additionally, our customer focus, coupled with market diversification and low-cost operating platforms, support our ability to maintain our best-in-class financial performance. Our amazing teams and the spirit of excellence are the foundation of that success.

此外，我們以客戶為中心，加上市場多元化和低成本營運平台，支持我們維持一流財務表現的能力。我們出色的團隊和卓越的精神是成功的基礎。

I thank each of them for their passion and dedication to one another. And remember that your health and safety are always the most important issue at hand.

我感謝他們每一個人的熱情和對彼此的奉獻。請記住，您的健康和安全始終是當前最重要的問題。

So thanks to all for you being on the call today. I appreciate you listening.

感謝大家今天的來電。我很感謝你的聆聽。

And now Darryl, please open the line for questions.

現在，達裡爾，請打開電話提問。

(Operator Instructions) Our first questions come from the line of Emily Chieng with Goldman Sachs.

（操作員說明）我們的第一個問題來自高盛的 Emily Chieng。

Mark and Theresa, thanks for the update here. My first question is around the full value-add coating line. And I thought last quarter that the expected CapEx for these value-added lines ranged between $400 million and $425 million. But I think you've outlined a budget of $450 million to $500 million today. So I would be curious as to what has changed around the scope of the project? Or on all the time line that has maybe driven sort of this increase yield?

馬克和特蕾莎，感謝您的更新。我的第一個問題是關於完整的增值塗層生產線。我認為上個季度這些增值業務的預期資本支出在 4 億美元到 4.25 億美元之間。但我認為您今天已經概述了 4.5 億至 5 億美元的預算。所以我很好奇該專案的範圍發生了什麼變化？或在所有可能推動產量增加的時間線上？

I think 2 things as we delved into it, we've got a clearer picture, firstly, the cost structure. But I think more importantly, it's just the expansion of line capability added a little bit more.

我認為，當我們深入研究時，我們對兩件事有了更清晰的認識，首先是成本結構。但我認為更重要的是，這只是線路能力的擴展增加了一點點。

It also is being priced on current steel values, and so that appreciate the total project cost as well.

它也是根據當前的鋼鐵價格定價的，因此項目總成本也有所提高。

That's clear. And maybe just a further this sort of line of questioning around growth. It sounds like you've got a pretty constructive view of the U.S. industry, clearly providing some further opportunities for growth in the coming years. What else do you think that could be planned, the Steel Dynamics longer term beyond these 4 coating lines as it relates to growth within your capital allocation budget? Should it be further organic growth in the Downstream, additional capacity? How else should we think about how you could be allocating capital yield?

很清楚。也許只是對成長的進一步質疑。聽起來您對美國產業有相當建設性的看法，顯然為未來幾年的成長提供了一些進一步的機會。您認為除了這 4 條塗層生產線之外，Steel Dynamics 還可以規劃哪些長期計劃，因為它與您的資本分配預算內的成長有關？下游是否應該進一步有機成長，增加產能？我們還應該如何考慮如何分配資本利得？

Sure. I think you will see going forward a continued sort of plan to invest downstream and value-added downstream processing. That has been a key part of our strategy to date and we'll continue to do so. And as one looks across our sort of operating platform on the steel side, we see continued growth capability there.

當然。我認為您會看到繼續實施投資下游和增值下游加工的計劃。到目前為止，這是我們策略的關鍵部分，我們將繼續這樣做。當人們審視我們在鋼鐵方面的營運平台時，我們看到了那裡的持續成長能力。

I do believe also we have an incredibly strong balance sheet, strong liquidity cash flow generation capability continues to improve through cycle. And there will be, I think, a good balanced sort of cash allocation strategy, transactional growth will certainly be part of that. There appears to be a strong pipeline of opportunity in both sort of pull-through manufacturing-type operations on the market today, along with the assets.

我確實相信，我們擁有令人難以置信的強勁資產負債表，強大的流動性現金流產生能力在整個週期中持續改善。我認為，將會有一種良好平衡的現金分配策略，交易成長肯定會是其中的一部分。當今市場上的兩種拉動式製造型業務以及資產似乎都存在大量機會。

Our next question comes from the line of Carlos De Alba with Morgan Stanley.

我們的下一個問題來自摩根士丹利的卡洛斯·德阿爾巴。

Mark, perhaps for you. You mentioned that you expect metallic prices to have peaked already. Any views on steel prices given what you said about metallics?

馬克，也許適合你。您提到您預計金屬價格已經見頂。鑑於您對金屬的看法，您對鋼鐵價格有何看法？

So I think as the -- we remain incredibly bullish of the market in -- for the rest of this year and into next year. On the demand side, it's just incredibly strong. You have a tight supply side right now. Inventories are at record low levels. I think MSCI data is 1.8 months, incredibly low. And there's no restocking capability there currently because there's just lack of availability to meet present demand.

因此，我認為，在今年剩餘時間和明年，我們仍然對市場非常樂觀。在需求方面，它非常強勁。目前供應緊張。庫存處於歷史最低水準。我認為 MSCI 數據是 1.8 個月，低得令人難以置信。目前那裡沒有補貨能力，因為缺乏足夠的庫存來滿足當前的需求。

Mill lead times are stretched. You have, yes, imports have picked up a little, but they're still moderated. And honestly, despite the large arbitrage availability, near-term availability for imports is still very, very, very, very tight.

工廠的交貨時間被拉長。是的，進口有所回升，但仍處於放緩狀態。老實說，儘管套利空間很大，但近期進口供應仍然非常非常緊張。

So I don't see being any ability for a surge there to take things over the time. And if you look at the second half of this year, there are a myriad of mill outages both for just regular maintenance outages, but also for installation of new equipment, Delta, Gallatin, those mills as they plan on their future expansion. So there's going to be a lot of steel actually coming offline in the second half, which is going to just tighten the supply-demand balance even more. So I think for the rest of this year, it's a bullish market for us.

因此，我認為隨著時間的推移，那裡的激增沒有任何能力來解決問題。如果你看看今年下半年，你會發現無數工廠停電，不僅是定期維護停電，還有新設備的安裝，Delta、Gallatin 等工廠計畫未來擴張。因此，下半年將會有大量鋼鐵實際停產，這只會進一步收緊供需平衡。所以我認為今年剩下的時間裡，這對我們來說是一個牛市。

All right. So basically, you expect increasing margins perhaps as scrap prices go down and the capacity remain high. What are the implications maybe to -- for working capital given that it was -- I mean, cash generation was very solid, but working capital, obviously, for obvious reasons, consume cash during the first half. Do you continue to see that basically at the same level in terms of days of working capital, maybe can receivable on inventories in terms of days of sales and costs at similar levels than what we experienced in the second quarter?

好的。因此，基本上，隨著廢鋼價格下降且產能保持在高水平，您預計利潤率可能會增加。對於營運資本來說，這可能意味著什麼——我的意思是，現金產生非常穩定，但營運資本顯然由於明顯的原因在上半年消耗了現金。您是否仍然認為，就營運資金天數而言，基本上處於同一水平，就銷售天數而言，庫存應收帳款和成本可能與我們在第二季度經歷的水平相似嗎？

I think we should see that moderating because from the perspective of pricing, Mark's correct, we've had very strong steel pricing and volumes have increased, but now that we're at this level, I don't see there being significant draws for the second half of the year, although we will be increasing working capital as Sinton ramps up. So Sinton could be as much as $150 million to $200 million of working capital in the next, call it, 6 to 9 months. But I don't think that you're going to see as significant of a draw in working capital in the second half of the year as we experienced in the first half of the year.

我認為我們應該看到這種放緩，因為從定價的角度來看，馬克是正確的，我們的鋼鐵定價非常強勁，銷量也有所增加，但現在我們處於這個水平，我不認為對鋼材有重大吸引力。下半年，儘管隨著 Sinton 的擴張，我們將增加營運資金。因此，Sinton 在接下來的 6 到 9 個月內可能會獲得高達 1.5 億到 2 億美元的營運資金。但我認為下半年營運資金的減少不會像上半年那麼嚴重。

Our next questions come from the line of Sathish Kasinathan with Deutsche Bank.

我們的下一個問題來自德意志銀行的 Sathish Kasinathan。

Mark and Theresa, my first question is on the steel fabrication segment. The second quarter '21 shipments were at record levels. But if you look at on a quarter-on-quarter basis, the shipments were only up 3% despite the record backlog and your guidance in April on adding more crews. So just wanted to get a sense of was there any weather-related impact in 2Q? And how should we look at the shipment progression for the rest of the year?

馬克和特蕾莎，我的第一個問題是關於鋼鐵製造領域的。 21 年第二季的出貨量創歷史新高。但如果按季度來看，儘管積壓量創歷史新高，並且您在 4 月份指導增加更多人員，但出貨量僅增長了 3%。所以只是想了解第二季是否有任何與天氣相關的影響？我們該如何看待今年剩餘時間的出貨進度？

Well, as you point out, it did increase, albeit incrementally quarter-over-quarter. But the additional folks that we've brought on board. Obviously, they have been ramping up and they need to be trained. And you won't see or wouldn't have seen a massive increase second quarter, but you will see that ramping up third and fourth quarter.

嗯，正如您所指出的，它確實有所增加，儘管逐季度遞增。但我們已經引進了更多的人。顯然，他們一直在進步，需要接受培訓。您不會看到或不會看到第二季的大幅成長，但您會看到第三季和第四季的成長。

And you mentioned about planned outages at some of your peers. I just wanted to get a sense of if you have any outages planned within your system for the second half of 2021?

您也提到了一些同行的計畫停電。我只是想了解您的系統是否計劃在 2021 年下半年進行任何停機？

Well, both, I believe, Columbus and Butler will take the normal kind of 4-day outages in the third, fourth quarter.

好吧，我相信哥倫布和巴特勒都將在第三、第四季經歷正常的為期 4 天的停電。

Third and fourth quarter. And good luck for the next quarter.

第三、第四季。祝下個季度好運。

Our next questions come from the line of David Gagliano with BMO Capital Markets.

我們的下一個問題來自 BMO 資本市場部的 David Gagliano。

Question. Just on the capital allocation side of it. first of all, historically, the mix over the last 5 years have been kind of 65-35 between growth versus shareholder returns. Should we expect that mix to change meaningfully in the out years?

問題。只是在資本配置方面。首先，從歷史上看，過去 5 年成長與股東回報之間的比例為 65-35。我們是否應該期望這種組合在未來幾年內會發生有意義的變化？

And a related question, I notice long product utilization rates are now creeping up close to 90%, which is pretty amazing. And I'm just wondering if you can speak to, as you think about capital allocation plans, are you interested in expanding your long products capacity given the utilization rates at this point and the positive outlook? And if so, would that more likely be organic or inorganic opportunities? That's my first question.

還有一個相關的問題，我注意到長材利用率現在已經接近 90%，這非常驚人。我只是想知道，當您考慮資本配置計劃時，考慮到目前的利用率和積極的前景，您是否有興趣擴大長材產能？如果是這樣，那麼更有可能是有機機會還是無機機會？這是我的第一個問題。

Dave, from a shareholder distributions and capital allocation. So first and foremost, we definitely are a growth-oriented company. We intend to stay that way. But we believe it's important during these periods of excess cash flow generation to provide increased distributions to the shareholders.

戴夫，來自股東分配和資本分配。因此，首先，我們絕對是一家以成長為導向的公司。我們打算保持這種狀態。但我們認為，在現金流產生過剩的時期，向股東提供更多的分配是很重要的。

And as we've said in the past, we like to keep our dividend in a very manageable level. When Sinton is up and operational, you will see a significant increase in the dividend at that point because we're going to have significantly higher through-cycle cash flow. But until that time and as we're generating excess cash, we will be utilizing the share buyback program as well. We think that's an important tool.

正如我們過去所說，我們希望將股息保持在非常易於管理的水平。當 Sinton 啟動並運營時，您會看到此時股息顯著增加，因為我們將擁有顯著更高的整個週期現金流。但在那之前，隨著我們產生多餘的現金，我們也將利用股票回購計畫。我們認為這是一個重要的工具。

However, we are very much focused on growth. As Mark mentioned, there are transaction opportunities today. There's quite an extensive pipeline. The teams are very busy, again, focused on manufacturing businesses as well as potentially steel production assets as well. You're correct. The long product utilization has improved nicely. And we're seeing a lot of both good demand. And then we've also -- the commercial teams have been doing a good job of cross-selling those products and we've gotten some market share gains out of that as well. Mark, would you like to address the question whether or not we want to grow in long products?

然而，我們非常關注成長。正如馬克所提到的，今天有交易機會。有相當廣泛的管道。這些團隊再次非常忙碌，專注於製造業務以及潛在的鋼鐵生產資產。你是對的。長材利用率良好提高。我們看到兩者都有很多良好的需求。然後我們的商業團隊在交叉銷售這些產品方面也做得很好，我們也從中獲得了一些市場份額。馬克，您想回答我們是否想要發展長材產品的問題嗎？

Yes. But just to touch on David. You're right, the long products markets have got incredibly hot here as of late. Certainly, you're seeing that in the margin expansion, there's been a change there, whereby pricing tended to be adjusted in lockstep with any change in scrap.

是的。但只是想談談大衛。你是對的，最近這裡的長材市場變得異常火熱。當然，您會看到在利潤率擴張方面發生了變化，定價往往會隨著廢品的任何變化而調整。

But as you've seen over the last few months, it's become a market-based, demand-based sort of pricing scenario and margins have increased 150%, sometimes 200% on products. So it is a very, very strong market for us today for sure across the space, merchants, beams, rail is stellar, and engineered bar, in all honestly, I think we're pretty well closed down from an order book perspective for the rest of the year and going into next year. So a great, great market.

但正如您在過去幾個月中看到的那樣，它已經成為一種基於市場、基於需求的定價方案，產品的利潤率增加了 150%，有時甚至增加了 200%。因此，今天對我們來說，這無疑是一個非常非常強勁的市場，在整個空間、商人、橫梁、鐵路都是一流的，而且工程酒吧，老實說，我認為從訂單簿的角度來看，我們已經關閉了今年剩餘時間並進入明年。這是一個非常非常好的市場。

That said, if you look at the kind of the capacity in merchant shapes and beams in particular, relative to through-cycle consumption. That's one area that it's kind of overcapacity situation through the cycle. And therefore, I wouldn't envision us having any meaningful increase in sort of hot side production of shapes.

也就是說，如果你看看商業形狀和樑的容量，特別是相對於整個週期消耗的容量。這是整個週期中產能過剩的一個領域。因此，我不認為我們會在形狀的熱面生產方面有任何有意義的增加。

I think you'll see us utilize excess hot metal capability that we've got in a couple of our mills on the long product side. But again, it won't be a massive increase in capacity.

我認為您會看到我們利用我們的幾家工廠在長材方面擁有的過剩鐵水能力。但同樣，容量不會大幅增加。

That's helpful. And then just my second -- or my second question on switching gears a little bit. On the cost side, if we kind of try to back into conversion costs, and obviously, there's different moving parts there, but it does look like they've crept fairly meaningfully higher. I was wondering if you could just speak to the cost creep there. Is that -- was that mix driven? Or are there underlying cost pressures? And how should we be modeling conversion costs relative to what we just saw this quarter on a forward-looking basis?

這很有幫助。然後是我的第二個問題——或者說我的第二個問題，關於稍微切換方向。在成本方面，如果我們嘗試回歸轉換成本，顯然，那裡有不同的移動部分，但看起來它們確實已經相當有意義地上升了。我想知道您是否可以談談那裡的成本上升。那是——是混合驅動的嗎？或是是否有潛在的成本壓力？我們應該如何前瞻性地根據本季剛剛看到的情況對轉換成本進行建模？

So David, I know how you try to back in the conversion costs. And in the world where now we have a lot more processing versus just steel production, it's going to be harder and harder for you to back into that number that way.

大衛，我知道你如何嘗試收回轉換成本。現在，我們的加工量遠高於鋼鐵生產量，因此您將越來越難以以這種方式恢復到這個數字。

So we had a considerable amount of more substrate coming into the system, and having it coated versus directly from the steel production itself. And so we're in as that makes it look like there's an increased conversion cost, there's actually not. It's just that we are processing more outside tons because there's such strong demand. And we can maybe try to unpack that a little bit better from quarter-to-quarter, but there were no significant increases in conversion costs.

因此，我們有大量的基材進入系統，並對其進行塗層，而不是直接來自鋼鐵生產本身。所以我們之所以這麼做，是因為這看起來轉換成本增加了，但實際上並沒有。只是因為需求如此強勁，我們正在加工更多的外來噸數。我們也許可以嘗試逐季度更好地解決這個問題，但轉換成本並沒有顯著增加。

Our next question is come from the line of Gordon Johnson with GLJ Research.

我們的下一個問題來自 GLJ Research 的 Gordon Johnson。

Question. I just wanted to get your thoughts on comments made by the President yesterday that the economy is booming. And looking at some of the survey data that came out of Michigan last week with respect to home buying trends and car buying trends, home buying trends being the worst based on the survey since the '90s, same for cars. Clearly, things are great right now. But do you guys see any potential for some pullback in the second half? And then I have a follow-up.

問題。我只是想了解一下您對總統昨天關於經濟正在蓬勃發展的言論的看法。看看密西根州上週關於購屋趨勢和汽車購買趨勢的一些調查數據，根據調查，購屋趨勢是 90 年代以來最糟糕的，汽車也是如此。顯然，現在一切都很好。但你們認為下半年有可能出現回檔嗎？然後我有一個後續行動。

Well, the simple answer to that is no. The demand is incredibly strong across all our sectors. We can't make enough steel there's massive pent-up demand, particularly on the automotive side. And as I said earlier, if you look at inventories right now, they are at very, very, very low levels on a historic basis, and there's a pent-up demand. And if you talk to the large dealers out there, they just cannot get enough product and they would suggest there's going to be a couple of years before they actually catch up.

嗯，簡單的答案是否定的。我們所有行業的需求都非常強勁。由於大量被壓抑的需求，特別是在汽車方面，我們無法生產足夠的鋼材。正如我之前所說，如果你看看現在的庫存，你會發現它們在歷史基礎上處於非常非常低的水平，並且存在著被壓抑的需求。如果你與那裡的大型經銷商交談，他們就是無法獲得足夠的產品，他們會建議他們需要幾年時間才能真正趕上。

So we remain incredibly bullish for the rest of this year going into next year. There's absolutely no doubt about it. There's a lot -- there seems to be this cloud over people's minds or heads. But we're in the trenches. We're talking to customers each and every day. I'm talking to customers each and every day. I think we have a good finger on the pulse and it's got legs. There's no doubt about it.

因此，我們對今年剩餘時間和明年仍然非常樂觀。這是毫無疑問的。有很多——似乎有這樣的烏雲籠罩在人們的頭腦或頭腦上。但我們正處於戰壕中。我們每天都在與客戶交談。我每天都在與客戶交談。我認為我們已經掌握了脈搏，而且有腿。毫無疑問。

That's helpful. And then on the flip side, there's been fears around -- and this is in my term, but I think we all know it well, (inaudible) and a lot of the incremental capacity that a lot of people expect to come online. But based on our estimates, a lot of that capacity is either redundant or has been pushed out. Do you guys share that view? And on the positive side, do you see the potential for maintenance, Cliffs has taken a mill down here pretty soon. It's going to be down for a while. There's some other meals coming down. Do you see the potential for prices to move even higher from here?

這很有幫助。另一方面，人們也擔心——這是我的說法，但我想我們都清楚這一點，（聽不清楚）以及許多人期望上線的大量增量容量。但根據我們的估計，其中許多產能要么是多餘的，要么已經被淘汰。你們同意這個觀點嗎？從積極的一面來看，你是否看到了維護的潛力，克里夫斯很快就在這裡拆除了一座工廠。會下降一段時間。還有一些其他的飯菜也下來了。您認為價格有可能進一步上漲嗎？

Well, we've had a, as many of you on the call know, I've had a very long-standing contrasting view to the overcapacity issue or situation. And while people have not been able to figure out or understand is that the U.S. is one of the few, if not the only countries that is still short.

嗯，正如在座的許多人都知道的那樣，我對產能過剩問題或情況持有長期相反的觀點。儘管人們無法弄清楚或理解，美國即使不是唯一的，也是少數幾個仍然短缺的國家之一。

Additional capacity is not our problem. In fact, our industry is doing the right thing. It needs to reinvest. It needs to get state-of-the-art equipment on board, both from a global competitive perspective, because if you look at the China, 85% of Chinese capacity today is less than 15 years old. It's modern. So our industry needs to invest and it needs to continue to invest in electric arc furnace type production routes from a sustainability standpoint.

額外的容量不是我們的問題。事實上，我們的產業正在做正確的事。它需要再投資。無論是從全球競爭的角度來看，它都需要配備最先進的設備，因為如果你看看中國，中國目前 85% 的產能還不到 15 年。這是現代的。因此，我們的產業需要投資，從永續發展的角度來看，需要繼續投資電弧爐型生產路線。

So in my humble opinion, when you have a an industry that arguably has somewhere 95 million to 100 million tons of production capability, and a need in a normal market of at least 120 million tons, production capability is not the issue. Imports are the issue and controlling them, and I think, as I said earlier, we do believe the tools are in place. Section 201 will maintain a sort of a barrier even if the 232 tariffs get (inaudible). So I'm not concerned about overcapacity 1 little bit. Some of the older antiquated high-cost integrated capability will remain offline and I think will offset the somewhat 6 million tons or so of new flat rolled coming into our marketplace.

因此，以我的拙見，當一個行業可以說具有9500萬到1億噸的生產能力，並且正常市場的需求至少為1.2億噸時，生產能力就不是問題。進口是問題所在並對其進行控制，我認為，正如我之前所說，我們確實相信這些工具已經就位。即使 232 關稅生效（聽不清楚），第 201 條仍將維持某種障礙。所以我一點也不擔心產能過剩。一些較舊的過時的高成本整合能力將保持離線狀態，我認為這將抵消進入我們市場的約 600 萬噸左右的新扁材。

Our next questions come from the line of Phil Gibbs with KeyBanc Capital Markets.

我們的下一個問題來自 KeyBanc Capital Markets 的 Phil Gibbs。

Congrats on all the progress. Mark, I just have first question just on the demand side with automotive and oil and gas. I know auto has been strong, kind of the first to lead us out of the whole last year. But recently, IHS has taken down their forecast on demand and the semi chip issues, kind of wondering just what you're seeing there in terms of pull from your customers? And then secondarily, you did mention oil and gas getting better at the margin. maybe just expand upon what you're seeing there and if your customers are trying to prepare you for a strong bounce back in '22?

祝賀所有的進步。馬克，我的第一個問題是關於汽車、石油和天然氣的需求面。我知道汽車產業表現強勁，是去年全年第一個帶領我們走出困境的汽車產業。但最近，IHS 取消了對需求和半晶片問題的預測，有點想知道您在客戶的拉動方面看到了什麼？其次，你確實提到石油和天然氣的邊際效益有所改善。也許只是擴展一下您在那裡看到的情況，以及您的客戶是否正在努力讓您為 22 年的強勁反彈做好準備？

Well, again, Phil, from our intelligence people are looking at a 17 million ton build rate this year and next year -- next year, sorry. That's an incredibly strong number. And I think as I suggested, when we talk to the dealers out there, when we look at the inventories, that is going to be demand or it's a pent-up demand out there that's going to sustain things. The chip shortage for some may the sort of hindering shipping capability. As I said earlier, very few of our auto platforms have been affected to date. So we've been fortunate.

好吧，菲爾，我們的情報人員預計今年和明年的建造速度將達到 1700 萬噸——抱歉，明年。這是一個令人難以置信的強勁數字。我認為，正如我所建議的，當我們與經銷商交談時，當我們查看庫存時，這將是需求，或者是被壓抑的需求，它將維持現狀。對某些人來說，晶片短缺可能會阻礙運輸能力。正如我之前所說，迄今為止，我們的汽車平台很少受到影響。所以我們很幸運。

But if you think about it, Okay. So chip shortages slow things down a little bit. The demand is still pent up, is still there, and it's just going to help extend into this incredible cycle that we're on or in.

但如果你仔細想想，好吧。因此，晶片短缺會稍微減慢速度。需求仍然被壓抑，仍然存在，這只會有助於延伸到我們正在或處於的這個令人難以置信的周期。

And then on the oil and gas side, Mark?

那麼在石油和天然氣方面，馬克？

Yes. On the -- yes, Theresa whispered that across, sorry. On the energy side, it's a little bit of a mixed bag. Obviously, global pricing, energy prices have come up a little, rig counts coming up a little. We're seeing improved downhole OCTG requirements. So engineered bar, for instance, we supply road bar into the seamless tube market that has been picking up.

是的。是的，特蕾莎低聲說道，抱歉。在能源方面，情況有點複雜。顯然，全球定價、能源價格有上漲，鑽機數量也有所增加。我們看到井下 OCTG 要求有所改善。例如，工程棒材，我們向一直在回升的無縫管市場供應公路棒材。

A little slower though on the kind of the infrastructure, the distribution pipeline is still very, very soft and the cancellation of a couple of pipelines here over the last few months less inventory in the supply chain that's trying to get sort of reallocated across the country. So OCTG, downhole strengthening, infrastructure, distribution, line pipe is going to be a little soft for probably at least another 12 months.

儘管在基礎設施方面有點慢，但分配管道仍然非常非常軟，過去幾個月這裡取消了幾條管道，供應鏈中試圖在全國範圍內重新分配的庫存減少了。因此，OCTG、井下加固、基礎設施、分配、管線可能至少在接下來的 12 個月內會有點疲軟。

Appreciate that. And then just a follow-up here on the CapEx side. I think, Theresa, you said CapEx of $350 million to $400 million in the second half. Was there something pushed out into next year? Because I thought last time you had talked about making some pre-stage investments for your tandem lines?

感謝。然後是資本支出方面的後續行動。我想，Theresa，您說過下半年的資本支出為 3.5 億至 4 億美元。有什麼事情延到明年嗎？因為我認為上次您談到為您的串聯生產線進行一些前期投資？

Yes. Based on engineering and some of the more detailed plans that we've received on the 4 lines, some of that is likely to be pushed from the fourth quarter into the first quarter. So next year, without doing our detailed planning yet, you're likely to see capital expenditures of probably somewhere between $550 million and $600 million.

是的。根據工程設計和我們收到的 4 條生產線的一些更詳細的計劃，其中一些計劃可能會從第四季度推遲到第一季。因此，明年，在尚未進行詳細規劃的情況下，您可能會看到資本支出可能在 5.5 億至 6 億美元之間。

Our next questions come from the line of Tristan Gresser with Exane BNP.

我們的下一個問題來自 Tristan Gresser 和 Exane BNP 的線路。

Regarding the new environmental targets, is there any CapEx associated to those targets? And what's the time line? You have already identified new initiatives to cut the machines by 2025 and 2030. And if you can, what is roughly the contribution from each focus area? I mean I think you talked about new technology efficiency, but also renewable? If you have that split, that would be helpful as well.

關於新的環境目標，是否有與這些目標相關的資本支出？時間線是怎樣的？您已經確定了到 2025 年和 2030 年削減機器的新舉措。如果可以的話，每個重點領域的貢獻大致是多少？我的意思是，我認為您談到了新技術的效率，但也談到了再生能源？如果你有這種分裂，那也會有幫助。

That was a very detailed question. I'm not sure I'm going to be able to go into all of it at this point in time. We do have some things that we can't discuss yet. They're very exciting on the renewable energy side of the equation. There will be some capital dollars obviously spent as we look at efficiency projects and as we move toward more renewable energy and the carbon reduction itself, we really don't have estimates to be able to discuss this morning because there's still a lot of projects that are being vetted. We will be disclosing those items as we move forward. But we have a very, and this is the thing that we want everybody to understand, how we're trying to differentiate ourselves in our carbon goals and in our renewable energy goals, is that we're being very transparent. There is a clear path on how we're going to achieve 2025 and 2030. And as we're able to disclose some of these projects, we absolutely, Tristan, will be sharing these projects. But at this point in time, it's just too early to do so.

這是一個非常詳細的問題。我不確定此時是否能夠討論所有內容。我們確實有一些事情還不能討論。他們在再生能源方面非常令人興奮。當我們考慮效率項目時，隨著我們轉向更多的可再生能源和碳減排本身，顯然會花費一些資本，我們確實沒有估計能夠在今天早上討論，因為仍然有很多項目正在接受審查。隨著我們的進展，我們將揭露這些項目。但我們希望每個人都明白，我們如何努力在碳目標和再生能源目標中脫穎而出，那就是我們非常透明。關於我們如何實現 2025 年和 2030 年目標，有一條明確的道路。由於我們能夠披露其中一些項目，特里斯坦，我們絕對會分享這些項目。但目前來看，這樣做還為時過早。

All right. No problem. And maybe a follow-up on raw material. Can you talk a bit about how your raw material strategy will evolve in both the context of capacity expansion, but also decarbonization as it has an impact on, for instance, Scope 3. How do you think your raw material mix will move in coming years?

好的。沒問題。也許還有原料的後續行動。您能否談談您的原材料策略將如何在產能擴張和脫碳背景下發展，因為它對範圍 3 等產生影響。您認為未來幾年您的原材料結構將如何變化？

Well, the raw material strategy really is consistent from the perspective, at least, of what we're looking at today. And that's, we use really only about 20% to 25% pig iron in our flat rolled mills. And so it's not as much as being advertised by maybe some of our peers today. And that is being sourced, obviously, internationally.

嗯，至少從我們今天看到的角度來看，原料策略確實是一致的。也就是說，我們在平軋機中實際上只使用約 20% 至 25% 的生鐵。因此，它並不像我們今天的一些同行所宣傳的那麼多。顯然，這是從國際上採購的。

So today, we use a mix of HBI as well, and we'll continue to do that moving forward. but I don't see the strategy at this point in time or, at least, over the next near term changing dramatically. Mark?

所以今天，我們也混合使用 HBI，並且我們將繼續這樣做。但我認為目前的策略或至少在下一個短期內不會發生巨大變化。標記？

No, I think we are -- again, we're executing on our plan that we've had in place for some time. Fortunately, we have a very, very good foundation through our omni source recycling platform that has a capability of some 6 million, 7 million tons of capability. So supply of scrap is not going to be an issue for us, for sure. And we're adding to that capability, as I said, in Mexico and some of those tons of flow up to Sinton and to our Columbus mill. So I think we're in good shape on the scrap side of things. as Theresa suggested, we are using HBI and have been using a little bit more of that of late.

不，我認為我們再次執行我們已經實施了一段時間的計劃。幸運的是，我們透過全源回收平台擁有非常非常好的基礎，該平台的能力約為 600 萬、700 萬噸。因此，廢鋼供應對我們來說絕對不會成為問題。正如我所說，我們正在墨西哥增加這種能力，其中一些流量會流向辛頓和我們的哥倫布工廠。所以我認為我們在廢品方面處於良好狀態。正如 Theresa 所建議的，我們正在使用 HBI，並且最近已經使用了更多的 HBI。

We have IDI that people seem to forget. That's a very, very effective use for our Butler mill in particular. It's making about 260,000 tonnes of liquid iron that we put into our electric arc furnace each year. And just to emphasize, if you look across our steel platform, in total, pig iron is only, I think it's less than 8% of the total input. So yes, it's an impact. but not a massive one.

人們似乎忘記了我們的 IDI。對於我們的巴特勒磨坊來說，這是一個非常非常有效的用途。我們每年生產約 26 萬噸鐵水，並放入電弧爐中。需要強調的是，如果你縱觀我們的鋼鐵平台，生鐵總量僅佔總投入的不到 8%。所以，是的，這是一種影響。但不是一個巨大的。

Our next questions come from the line of John Tumazos with Very Independent Research.

我們的下一個問題來自 John Tumazos 的 Very Independent Research。

Congratulations on $0.7 billion in the quarter. Looking at your CapEx strategy for the next 2 years, it looks like the focus is to maximize sent complete the painting lines, the Galvalume, galvanizing, get all the squeal out of the pig.

恭喜本季營收 7 億美元。看看你們未來兩年的資本支出策略，看起來重點是最大限度地完成塗漆線、鍍鋁鋅、鍍鋅，消除豬的所有尖叫聲。

Is it fair for us to expect your next big capital expenditure initiatives to be 2024, 2025 completion, maybe the outlays begin a little sooner? But where your focus right now is making hay while the sun shines and getting everything out of the 3 million-ton new mill.

我們期望你們的下一個大型資本支出計畫將於 2024 年、2025 年完成，也許支出會更早一點開始，這是否公平？但您現在的重點是趁著陽光曬乾草，並從 300 萬噸新磨坊中取出所有東西。

John. It's good to hear from you. There's absolutely no doubt that the team's focus has been execution of Sinton, and it's a very large-scale facility. You can actually, if you jump on our website, we have a drone video that gets updated, I think, once a month, and it's a colossal phenomenal facility that's being built by the team down there.

約翰。很高興收到你的來信。毫無疑問，團隊的重點是辛頓的執行，這是一個非常大規模的設施。事實上，如果你跳到我們的網站上，我們有一個無人機視頻，我想，每月更新一次，這是一個由那裡的團隊正在建造的巨大的非凡設施。

And so the focus for sure has been execution, execution, execution. Nonetheless, we have other folks on our team that continue to look at transactional activity. and also the individual mills, we have very talented teams that continue to look at areas of organic growth. So I think you'll certainly see just a continuation of that organic growth that you've seen in the last 20, 25 years or so.

因此，焦點肯定是執行、執行、執行。儘管如此，我們團隊中仍有其他人繼續關注交易活動。以及各個工廠，我們擁有非常有才華的團隊，他們不斷關注有機成長領域。因此，我認為您肯定會看到過去 20、25 年左右的有機成長的延續。

From a Sinton's standpoint, the new lines that you mentioned, that sort of parallels or just supports a long-term strategy of fully utilizing or building high levels of through-cycle utilization. And so not only are those 4 new lines very effective uses of CapEx with very, very, very good returns. It allows those capital-intense steel mill assets to run at a high utilization, as I said, through the cycle. I think we've demonstrated clearly that, that strategy allows us to have superior shipments, production capabilities in any market environment.

從 Sinton 的角度來看，您提到的新生產線與充分利用或建立高水準的全週期利用率的長期策略相類似或只是支持。因此，這 4 條新生產線不僅非常有效地利用了資本支出，而且帶來了非常非常好的回報。正如我所說，它允許那些資本密集型鋼廠資產在整個週期中以高利用率運作。我認為我們已經清楚地表明，該策略使我們能夠在任何市場環境下擁有卓越的出貨量和生產能力。

So there could be a big project before '24, '25 or a transaction?

那麼在 24、25 之前可能會有一個大項目或一筆交易？

We would imagine. And I think I've stated in the past, we don't see a Sinton esque greenfield project on our horizon transactional activity, there could be something meaningful there.

我們會想像。我想我過去曾說過，我們在我們的地平線交易活動中沒有看到辛頓式的綠地項目，那裡可能有一些有意義的東西。

Congratulations. $3 billion annual rate is amazing for profits.

恭喜。每年30億美元的利潤是驚人的。

Thank you, John. We've got a great team. A little bit of a market tailwind is not hurting either.

謝謝你，約翰。我們有一支很棒的團隊。市場的一點順風也沒有什麼壞處。

Our next questions come from the line of Michael Glick with JPMorgan.

我們的下一個問題來自摩根大通的 Michael Glick。

You mentioned talking to customers and auto customers in particular, but inventories across or beyond auto are also pretty low. Any sense as to what the game plan is for your non-auto customers in terms of rebuilding those inventories once they have access to more supply?

您提到與客戶、特別是汽車客戶交談，但汽車內外的庫存也相當低。對於您的非汽車客戶來說，一旦他們獲得更多供應，重建這些庫存的遊戲計劃是什麼？

Well, I don't think there's really any desire right now to rebuild. Firstly, people just can't get enough steel to satisfy their immediate needs, number one -- domestically. Number two, the speculative risk associated with the accumulating inventory in today's sort of market environment is very pretty gutsy call, Imports as I said, despite the high arbitrage, there's very little available currently. The global markets are very strong and most of the material is being consumed within those markets. So there's not much available even if they wanted to.

嗯，我認為現在確實沒有任何重建的願望。首先，人們無法獲得足夠的鋼鐵來滿足他們的眼前需求，第一——國內。第二，在當今的市場環境下，與累積的庫存相關的投機風險是非常大膽的，正如我所說，進口，儘管套利很高，但目前可用的很少。全球市場非常強勁，大部分材料都在這些市場中消耗。所以即使他們願意，也沒有太多可用的東西。

That said, the speculative risk of material flowing in, of course, delivery times are November, December, January today. People don't want to take that risk. So I don't see any rebuild in the near term. And again, that's just another factor that's going to extend the cycle.

也就是說，投機風險的物資流入，當然，交割時間是11月、12月、1月今天。人們不想冒這個風險。所以我認為短期內不會有任何重建。再說一次，這只是另一個會延長週期的因素。

Understood. And then I think you noted $475 million to $500 million of incremental through-cycle EBITDA once in the value-add lines are complete. Could you walk us through some of the spread assumptions there, so we can understand the moving parts a bit better?

明白了。然後我認為您注意到，一旦增值線完成，整個週期的 EBITDA 增量將達到 4.75 億至 5 億美元。您能否向我們介紹一些價差假設，以便我們更能理解移動部分？

Michael, we won't go through the detailed spreads themselves. We will tell you that the spreads are based on mid-cycle spreads, so definitely not what we're experiencing today. And we're starting with a base hot rolled to prime scrap kind of mix spread. And then we build the value-added product mix off of that. And we are using what we've experienced historically and then also looking forward at what the expectations are in those individual markets on a mid-cycle basis.

邁克爾，我們不會親自查看詳細的價差。我們會告訴您，利差是基於週期中期利差，所以絕對不是我們今天所經歷的。我們從基礎熱軋到優質廢鋼的混合物開始。然後我們以此為基礎建構加值產品組合。我們正在利用我們的歷史經驗，然後展望這些個別市場在周期中期的預期。

So I'm sorry, we can't give you specific spreads. But it is showing that sitting -- our expectations are that the volume operates very much like our Columbus and Butler facilities operate, that means that production and shipments tend to be at or near capacity on a mid-cycle basis.

所以很抱歉，我們無法為您提供具體的點差。但它表明，我們的預期是，銷售的運作與我們哥倫布和巴特勒工廠的運作非常相似，這意味著生產和發貨往往在周期中期達到或接近產能。

Our next questions come from the line of Sean Wondrack with Deutsche Bank.

我們的下一個問題來自德意志銀行的 Sean Wondrack。

Mark and Theresa, congratulations on another great quarter here. Just a couple of housekeeping items, and I apologize if you've mentioned these. But taxes, I recognize you had a shield related to Sinton. I think it's supposed to continue to work in your favor. Can you maybe touch on that and sort of expectations for working capital for the year, please?

馬克和特蕾莎，恭喜又一個偉大的季度。只是一些家務用品，如果您提到這些，我深表歉意。但是稅收，我知道你有一個與辛頓有關的盾牌。我認為它應該會繼續對你有利。您能否談談這一點以及今年營運資金的預期？

Absolutely. So yes, Sinton will still expect it to provide a tax shield this year as we're able -- to the year of operations, we will expense that asset investment. It likely will shield upwards of $350-plus million. However, our earnings are so strong that we're still having tax payments that are required this year. And I think we're estimating our effective tax rate to be about 15%.

絕對地。所以，是的，Sinton 仍然希望它今年能夠提供我們所能提供的稅盾——到營運當年，我們將支出該資產投資。它可能會保護超過 3.5 億美元。然而，我們的收入如此強勁，以至於今年我們仍然需要繳稅。我認為我們估計我們的有效稅率約為 15%。

From the perspective of working capital, Sinton is likely to build working capital as it starts operations in the next 6 to 9 months of somewhere between $150 million and $200 million. Outside of that, I would expect the rest of our operations working capital to remain fairly steady, just given that our volumes have already picked up and pricing has been really strong as well. So I don't see a lot of additional movement in working capital.

從營運資金的角度來看，Sinton 在未來 6 至 9 個月內開始營運時可能會累積 1.5 億至 2 億美元的營運資金。除此之外，我預計我們的其餘營運資本將保持相當穩定，因為我們的銷售量已經有所增加，而且定價也非常強勁。因此，我認為營運資金不會有太多額外變動。

That's helpful. And then just in terms of opportunistic use of cash flow. You have $1 billion of cash on the balance sheet. You're going to continue to generate cash going forward. You've obviously done a nice job outlining the various ways you can use that cash. But I guess my question is, do you think it's prudent to keep a solid cash balance there should an opportunity arise? Or should the market turn at some point So that you have the ability to go out and make these transactions?

這很有幫助。然後就現金流的機會主義使用而言。您的資產負債表上有 10 億美元現金。未來您將繼續產生現金。顯然，您已經很好地概述了使用這些現金的各種方式。但我想我的問題是，您認為在機會出現時保持穩定的現金餘額是否明智？或者市場是否應該在某個時刻發生轉變，以便您有能力出去進行這些交易？

It's a good question. Our balance sheet is extraordinarily strong. So even if you look at our net leverage or our gross leverage, either metric, it's solidly in the investment-grade arena. We have additional, significant additional debt capacity and the capital structure. And so whereas, yes, it makes sense to keep some cash on the balance sheet. We also have things that we can spend that money on, whether it's additional share repurchases as we expect to make to the second half of the year, and it still won't hinder all the growth expectations or projects that we think are available to us on the transaction side. So yes, we do keep dry powder at the same token, there's still that capacity as well.

這是一個好問題。我們的資產負債表異常強勁。因此，即使您查看我們的淨槓桿率或總槓桿率，無論是哪種指標，它都處於投資級領域。我們擁有額外的、顯著的額外債務能力和資本結構。因此，是的，在資產負債表上保留一些現金是有意義的。我們還有可以花這筆錢的東西，無論是我們預計在下半年進行的額外股票回購，但它仍然不會阻礙我們認為可以進行的所有成長預期或專案在交易方面。所以，是的，我們確實保留了乾粉，同樣的道理，仍然有這種能力。

And I guess I would just add, if you look, hopefully, when you look at our experience of growth, over the years, it's always been very, very intentional, I would say. I would also say it's also very disciplined, and we won't do a transaction at ludicrous numbers, we always look at through cycle. So if we were to do a transaction today, it will be a good investment through the cycle, not just based on today's crazy profitability that some may have.

我想我想補充一點，如果你看看，希望，當你看看我們多年來的成長經歷，我會說，這一直是非常非常有意義的。我還想說，這也是非常有紀律的，我們不會以可笑的數字進行交易，我們總是關注整個週期。因此，如果我們今天進行交易，這將是整個週期中的一項良好投資，而不僅僅是基於今天某些人可能擁有的瘋狂獲利能力。

No, that makes sense. I feel like you've demonstrated that over time as you've scaled this business up. It's not always easy to do that. I guess just my last question, just touching on something you said earlier, Mark. When you think about the U.S. market sort of being in a deficit and it's been in a deficit for years. I guess, philosophically, do you believe that eventually domestic producers will evolve to fill that demand gap? Or do you think we'll always have a component of imports coming into this country?

不，這是有道理的。我覺得隨著時間的推移，隨著業務規模的擴大，你已經證明了這一點。做到這一點並不總是那麼容易。我想這只是我的最後一個問題，只是觸及你之前所說的，馬克。當你想到美國市場有點處於赤字狀態時，而且多年來一直處於赤字狀態。我想，從哲學上講，您是否相信國內生產商最終會發展來填補這一需求缺口？還是您認為我們總是會有一部分進口產品進入這個國家？

I think there will always be some element of imports for sure. It's been a long, long, long, long time. I think, I don't know, mid-'70s or '80 or whatever, when imports were de minimis. We're not going to be a country that self satisfies its demand in total. So import is always going to be there.

我認為肯定總是會有一些進口元素。已經過了很長、很長、很長、很長的時間。我想，我不知道，在 70 年代中期或 80 年代或其他什麼時候，進口是微不足道的。我們不會成為一個完全自我滿足需求的國家。所以進口總是存在的。

Today, we typically need 20% of demand as an import need. We just don't need 30 million tonnes or 30% imports. But I think if you -- all the discussion has been relatively near term. When I see near term, 6, 9 months into next year. But people are not, I don't believe any way, recognizing that the industry is in transition. And I think there's some paradigm shifts occurring that are going to retain a lot higher sort of health, market health in our industry and a much higher margins going forward.

如今，我們通常需要 20% 的需求作為進口需求。我們只是不需要 3000 萬噸或 30% 的進口。但我認為如果你——所有的討論都是相對近期的。當我看到近期的情況時，也就是明年的 6、9 個月。但我不相信人們並沒有意識到這個產業正在轉型。我認為正在發生一些範式轉變，這將在我們的行業中保持更高的健康、市場健康和更高的利潤率。

You look at the leadership mindset today and the consolidation, the integrated industry is really focused on returning shareholder value. They are totally focused on sort of consolidating and rationalizing their assets to make good business sense. And that's going to bring, I think, market health and market strength long term.

你看看今天的領導思維和整合，整合的產業確實專注於回報股東價值。他們完全專注於整合和合理化其資產，以實現良好的商業意義。我認為，這將帶來長期的市場健康和市場實力。

USMCA has, I think, certainly for us, been a market change in dynamic where you see particularly the European automakers are shifting their supply chain from imports to domestic sourcing. And again, we've been a very, very large beneficiary of that.

我認為，對我們來說，USMCA 無疑是一個市場動態變化，尤其是歐洲汽車製造商正在將其供應鏈從進口轉向國內採購。再說一遍，我們是其中非常非常大的受益者。

So the market is changing for sure in this country. And as I said earlier, it needs more capacity. It needs state-of-the-art technological capability, low-cost, sustainable, low-carbon footprint production routes. And so I am not fearful for a second at the capacity coming online is needed, and it will benefit the North American manufacturer base in spades going forward.

所以這個國家的市場肯定正在改變。正如我之前所說，它需要更多的容量。它需要最先進的技術能力、低成本、永續、低碳足跡的生產路線。因此，我一點也不擔心需要上線的產能，這將使北美製造商基地的未來受益匪淺。

I appreciate that. It's a very thoughtful answer to a pretty difficult question. But thank you very much, and good luck going forward.

我很感激。這是對一個相當困難的問題的非常深思熟慮的答案。但非常感謝你，祝你未來一切順利。

Thank you. That does conclude our question-and-answer session. I'd like to turn the call back over to Mr. Millett for any closing remarks.

謝謝。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, Daryl. I would just emphasize -- well, firstly, thank you for those that are still on the call. Thank you for listening today to our thoughts and opinions anyway.

好吧，謝謝你，達裡爾。我只想強調——首先，感謝那些仍在通話中的人。無論如何，感謝您今天聆聽我們的想法和意見。

It was an incredible quarter. We believe next quarter is going to be better even so. And that is driven certainly by the market tailwinds that we're experiencing, but it's also more importantly, driven by the most phenomenal steel and metals team in the world. They are an incredible bunch of individuals. We're numbered 10,000 now. If you include the wives and partners and kids we've got, I don't know, 25,000 people in the SDI family today. They all contribute to our success.

這是一個令人難以置信的季度。即便如此，我們相信下個季度會更好。這當然是由我們正在經歷的市場順風推動的，但更重要的是，是由世界上最出色的鋼鐵和金屬團隊所推動的。他們是一群令人難以置信的人。我們現在有10,000人。如果算上我們的妻子、伴侶和孩子，我不知道，今天 SDI 家族有 25,000 人。他們都為我們的成功做出了貢獻。

So thank you to each and every 1 of them. thank you to our customers. We can't do what we do without you. We've had some incredibly loyal support, and I wish we could support them even more today because they -- we're struggling to meet all their needs. So thank you, everyone. Make it a great day, and be safe. Take care.

感謝他們每一個人。感謝我們的客戶。沒有你我們就做不到我們所做的事情。我們得到了一些非常忠誠的支持，我希望今天我們能夠為他們提供更多支持，因為我們正在努力滿足他們的所有需求。謝謝大家。讓它成為美好的一天，並注意安全。小心。

Once again, ladies and gentlemen, that does conclude today's call. Thank you for your participation, and have a great and safe day.

女士們、先生們，今天的電話會議到此結束。感謝您的參與，祝您有美好而安全的一天。