Steel Dynamics Inc (STLD) 2023 Q2 法說會逐字稿

Good day, and welcome to the Steel Dynamics Second Quarter 2023 Earnings Conference Call. (Operator Instructions) Please be advised this call is being recorded today, July 20, 2023, 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 2023 年第二季度收益電話會議。 （操作員說明）請注意，本次通話將於今天（2023 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，請斷開連接。

At this time, I would like to turn the conference over to David Lipschitz, Director, 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, Holly. Good morning, and welcome to Steel Dynamics Second Quarter 2023 Earnings Conference Call. As a reminder, today's call is being recorded and will be available on our website for replay later today.

謝謝你，霍莉。早上好，歡迎參加 Steel Dynamics 2023 年第二季度收益電話會議。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。

Leading today's call are Mark Millett, Chairman and Chief Executive Officer of Steel Dynamics; Theresa Wagler, Executive Vice President and Chief Financial Officer; and Barry Schneider, President and Chief Operating Officer. Other members of our senior leadership team are joining us on the call individually.

今天的電話會議由 Steel Dynamics 董事長兼首席執行官 Mark Millett 主持。 Theresa Wagler，執行副總裁兼首席財務官；以及總裁兼首席運營官巴里·施奈德。我們高級領導團隊的其他成員也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 integrating or starting out new assets in the aluminum industry, the use of estimates and assumptions in connection with anticipated project returns and our steel metal 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 annual filed SEC Form 10-K under the heading Forward-Looking Statements and Risk Factors, that's on the Internet at www.sec.gov, and if applicable, in any later SEC Form 10-Q.

此類陳述涉及與整合或啟動鋁行業新資產、與預期項目回報和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估計和假設的使用相關的風險和不確定性。這些示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，該表格位於互聯網 www.sec.gov 上，如果適用，還可以在任何後續的 SEC 表格 10-Q 中進行描述。

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 Second Quarter 2023 Results. And now I'm pleased to turn the call over to Mark.

您還可以在昨天發布的題為“Steel Dynamics 報告 2023 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, everybody. Thank you for being with us on our second quarter earnings call. Once again, our teams achieved a solid financial and operational quarter. Highlights included continued safety improvement, 81% of our facilities were incident free through the quarter.

謝謝你，大衛，大家早上好。感謝您參加我們的第二季度財報電話會議。我們的團隊再次實現了穩健的財務和運營季度業績。亮點包括持續改進安全性，本季度我們 81% 的設施沒有發生事故。

Cash from operations of $808 million and EBITDA generation of $1.2 billion. We also received improved investment-grade credit ratings, providing further third-party confirmation of the strength of our business model. We're also making significant progress on our aluminum flat-rolled investments. There is great excitement within the prospective customer base for new and innovative supply chain solutions from a differentiated supplier. I'm incredibly proud of our teams. They are the foundation of our company, and they drive our success. It's their culture of excellence, combined with our meaningful value-added growth, diversification and supply chain positioning that is resulting in our earnings strength in all market cycles.

運營現金為 8.08 億美元，EBITDA 為 12 億美元。我們還獲得了更高的投資級信用評級，為我們業務模式的實力提供了進一步的第三方確認。我們的鋁壓延投資也取得了重大進展。潛在客戶群對來自差異化供應商的新型創新供應鏈解決方案感到非常興奮。我為我們的團隊感到無比自豪。他們是我們公司的基礎，也是我們成功的推動力。正是他們的卓越文化，加上我們有意義的增值增長、多元化和供應鏈定位，才造就了我們在所有市場週期中的盈利優勢。

However, as I've often said, great financial performance is of no importance without safety for our SDI family. We are focused on providing the very best for their health, safety and welfare. We're actively engaged in safety at all times and at every level, keeping a top of mind and an active conversation. Our focus, as I said, the team's safety performance further improved in the second quarter, way ahead of industry averages. There's more to do, we will not rest until we consistently achieve our goal of 0 injuries.

然而，正如我經常說的，如果沒有我們 SDI 家族的安全，再好的財務業績也毫無意義。我們致力於為他們的健康、安全和福利提供最好的服務。我們始終在各個層面積極參與安全工作，始終將安全放在首位並積極開展對話。正如我所說，我們的重點是團隊的安全績效在第二季度進一步改善，遠遠領先於行業平均水平。還有更多工作要做，我們不會休息，直到我們始終如一地實現零傷害的目標。

But before I continue, Theresa, would you like to give us some financial color.

但在我繼續之前，特蕾莎，您願意給我們介紹一些金融方面的知識嗎？

Thank you, Mark. Good morning, everyone. I add my sincere appreciation and congratulations to the entire team for another strong performance. Our second quarter 2023 net income was $812 million or $4.81 per diluted share with, as Mark mentioned, EBITDA of $1.1 billion.

謝謝你，馬克。大家，早安。我對整個團隊的又一次出色表現表示誠摯的讚賞和祝賀。我們 2023 年第二季度的淨利潤為 8.12 億美元，即稀釋後每股收益 4.81 美元，正如馬克提到的，EBITDA 為 11 億美元。

Second quarter 2023 revenues of $5.1 billion were higher than sequential first quarter results, driven by increased realized steel selling values. Our second quarter operating income of $1.1 billion was 27% higher than first quarter results as a result of significantly expanded steel and metal spread.

受鋼鐵銷售價值增加的推動，2023 年第二季度收入為 51 億美元，高於第一季度環比業績。由於鋼鐵和金屬價差大幅擴大，我們第二季度的營業收入為 11 億美元，比第一季度的業績高出 27%。

As we discussed our business this morning, we are positive with industry fundamentals for the remainder of 2023 and beyond, and we're focused toward our continued transformational growth. Our steel operations generated strong operating income of $706 million in the second quarter due to metal spread expansion and near-record shipments of 3.2 million tonnes. Higher realized pricing more than offset moderately higher scrap costs in the quarter.

正如我們今天早上討論的業務一樣，我們對 2023 年剩餘時間及以後的行業基本面持樂觀態度，並且專注於持續轉型增長。由於金屬價差擴大和接近創紀錄的 320 萬噸發貨量，我們的鋼鐵業務在第二季度創造了 7.06 億美元的強勁營業收入。較高的已實現定價足以抵消本季度適度較高的廢鋼成本。

We realized increased pricing and metal spread across both our flat rolled and our long product steel operations. As a reminder, we are the primary domestic steel supplier into the railroad rail market as well as a producer of all other long steel products, including structural steel, special bar quality, merchant shapes, specialty shapes and reinforcing bar with over 4.5 million tonnes of annual capacity.

我們的扁材和長材鋼材業務的定價和金屬價差均有所增加。需要提醒的是，我們是國內鐵路市場的主要鋼材供應商，也是所有其他長材產品的生產商，包括結構鋼、特殊型材、商用型材、特種型材和鋼筋，年產能超過 450 萬噸。

Operating income from our metals recycling operations was $40 million, consistent with sequential first quarter results due to increased shipments being offset by lower metal spreads. The team continues to lever our circular manufacturing model benefiting us by providing high-quality, lower-cost scrap, which improves furnace efficiency and reduces company-wide working capital.

我們的金屬回收業務的營業收入為 4000 萬美元，與第一季度的連續業績一致，因為發貨量的增加被金屬價差的下降所抵消。該團隊繼續利用我們的循環製造模式，提供高質量、低成本的廢料，從而提高熔爐效率並減少全公司的營運資金，從而使我們受益。

Our Mexico recycling operations also provide a competitive advantage for reliable supply as well as for future increased scrap aluminum collection. We are the largest North American metals recycler today processing and using ferrous scrap and non ferrous aluminum, copper and other metals. Our steel fabrication operations achieved operating income of $462 million in the second quarter lower than first quarter results but historically strong as average pricing decreased 13% and volumes were steady.

我們的墨西哥回收業務還為可靠供應以及未來增加廢鋁收集提供了競爭優勢。我們是當今北美最大的金屬回收商，加工和使用黑色金屬廢料以及有色鋁、銅和其他金屬。我們的鋼鐵製造業務第二季度實現營業收入 4.62 億美元，低於第一季度的業績，但歷史強勁，平均定價下降 13%，銷量穩定。

Our steel joist and deck order backlog extends into the first quarter of 2024. It has contracted from record highs experienced in 2022 as shipments have outpaced spot order activity. However, forward backlog pricing remains very strong and price -- spot pricing remains very resilient.

我們的鋼托樑和甲板訂單積壓一直持續到 2024 年第一季度。由於發貨量超過了現貨訂單活動，積壓量已較 2022 年創下的歷史高位有所收縮。然而，遠期積壓定價仍然非常強勁，而現貨定價仍然非常有彈性。

Based on our backlog, customer sentiment and manufacturing momentum, we expect steel fabrication earnings to remain strong, but slightly lower than the first half of 2023 levels for the second half of the year. Infrastructure Inflation Reduction Act, Department of Labor, decarbonization support and manufacturing onshoring are expected to support not only fixed asset investment in steel consumption, but also steel joist index demand in the coming years.

根據我們的積壓訂單、客戶情緒和製造勢頭，我們預計下半年鋼鐵製造盈利將保持強勁，但略低於 2023 年上半年的水平。勞工部的基礎設施通脹削減法案、脫碳支持和製造業外包預計不僅將支持鋼鐵消費中的固定資產投資，還將支持未來幾年的鋼托樑指數需求。

Our cash generation continues to be strong based on our differentiated circular business model and variable cost structure. At June 30, our liquidity was $3.5 billion, inclusive of our recently renewed unsecured $1.2 billion revolver.

基於我們差異化的循環業務模式和可變成本結構，我們的現金生成能力持續強勁。截至 6 月 30 日，我們的流動性為 35 億美元，其中包括最近更新的 12 億美元無擔保左輪手槍。

I'd like to congratulate the team. They actually refinanced revolver yesterday. So thank you to Rick and Dominic. During the second quarter of 2023, we generated cash flow from operations of $808 million and $1.5 billion for the first half of the year. During the first half, we invested $585 million in fixed asset investments. We believe capital investments for the second half of the year will be in the range of $1 billion. The vast majority relating to our aluminum flat-rolled investments and the completion of our 4 flat-rolled steel coating lines by the end of 2023.

我想祝賀我們的團隊。他們昨天實際上為左輪手槍進行了再融資。謝謝里克和多米尼克。 2023 年第二季度，我們的運營現金流為 8.08 億美元，上半年為 15 億美元。上半年，固定資產投資完成5.85億元。我們認為下半年的資本投資將在 10 億美元左右。絕大多數與我們的鋁壓延投資以及到 2023 年底完成 4 條壓延鋼塗層生產線有關。

In February, we increased our cash dividend 25% and repurchased $734 million or 3.9% of our outstanding shares in 2023. At June 30, $606 million remained authorized for repurchase under our existing $1.5 billion program that we put in place during November of 2022.

2 月份，我們將現金股息增加了 25%，並回購了 7.34 億美元，即 2023 年已發行股票的 3.9%。截至 6 月 30 日，根據我們在 2022 年 11 月實施的現有 15 億美元計劃，仍有 6.06 億美元可供回購。

Since 2017, we've increased our cash dividend 174% and repurchased $4.8 million of our common stock, representing 39% of our outstanding shares. In recognition of our growth, strong balance sheet profile and consistent free cash flow generation capability, last month, we received upgrades, as Mark mentioned, to our investment grade credit designation from both Moody's and from S&P.

自 2017 年以來，我們將現金股息增加了 174%，並回購了 480 萬美元的普通股，占我們已發行股票的 39%。正如馬克提到的，由於對我們的增長、強勁的資產負債表狀況和持續的自由現金流生成能力的認可，穆迪和標準普爾均將我們的投資級信用評級升級。

Our capital allocation strategy prioritizes high-return growth with shareholder distributions comprised of a positive base dividend that's complemented with a variable share repurchase program, while we remain dedicated to our investment-grade credit designation.

我們的資本配置策略優先考慮高回報增長，股東分配包括積極的基本股息，並輔以可變股票回購計劃，同時我們仍然致力於投資級信用評級。

We've placed ourselves in a position of strength to have a sustainable capital foundation that supports meaningful strategic growth, strong shareholder returns and investment grade metrics. Our free cash flow profile has fundamentally increased over the last 5 years from an annual average of $580 million to $2.6 billion currently. Our aluminum growth strategy is consistent with this strategy. We will readily fund our flat-rolled aluminum investments with available cash and cash flow from operations. We also plan to continue strong and responsible shareholder distributions, as we have clearly demonstrated, we are squarely positioned for the continuation of sustainable optimized long-term value creation.

我們擁有強大的實力，擁有可持續的資本基礎，支持有意義的戰略增長、強勁的股東回報和投資等級指標。過去 5 年來，我們的自由現金流狀況從年均 5.8 億美元大幅增加至目前的 26 億美元。我們的鋁增長戰略與這一戰略是一致的。我們將隨時利用可用現金和運營現金流為我們的壓延鋁投資提供資金。我們還計劃繼續進行強有力和負責任的股東分配，正如我們已經清楚地表明的那樣，我們完全有能力繼續可持續優化的長期價值創造。

Sustainability is also a significant part of our long-term value creation strategy, and we're dedicated to our people, our communities and our environment. We're committed to operating our businesses with the highest integrity. We have an actionable path towards carbon neutrality that is more manageable, and we believe considerably less expensive than they may lay ahead for many of our industry and other peers.

可持續發展也是我們長期價值創造戰略的重要組成部分，我們致力於為我們的員工、社區和環境服務。我們致力於以最高的誠信度經營我們的業務。我們有一條更易於管理的實現碳中和的可行途徑，而且我們相信，比我們許多行業和其他同行可能面臨的成本要低得多。

Our sustainability and carbon reduction strategy is an ongoing journey, and we're moving forward with the intention to make a positive difference playing a leadership role. For those of you on the call, that like to track the product differentiation among our flat-rolled shipments. For the second quarter, our hot-rolled shipments were 972,000 tonnes. Our cold-rolled shipments were 149,000 tonnes, and our coated shipments were 1,150,000 tonnes.

我們的可持續發展和碳減排戰略是一個持續的旅程，我們不斷前進，旨在發揮領導作用，做出積極的改變。對於那些喜歡跟踪我們平捲髮貨中的產品差異的通話人員。第二季度，我們的熱軋出貨量為972,000噸。我們的冷軋出貨量為149,000噸，我們的塗層出貨量為1,150,000噸。

With that, I'll turn the call back over to Mark.

這樣，我會將電話轉回給馬克。

Thank you, Theresa. And hopefully, folks can hear us -- I know it's -- I guess (inaudible) is not quite up to [snuff] today, so I apologize for that. But nonetheless, our steel fabrication platform turned in another strong quarter. The team continues to do an absolutely phenomenal job there. 1 second -- Everyone apologies, but it appears that many folks can't hear us, hear the call. I would ask you to hang up and call back in and we'll just pause the call for a second. Thank you.

謝謝你，特蕾莎。希望人們能夠聽到我們的聲音——我知道——我想（聽不清）今天不太符合[鼻煙]，所以我為此道歉。但儘管如此，我們的鋼鐵製造平台又迎來了一個強勁的季度。該團隊繼續在那裡做著絕對出色的工作。 1秒——每個人都道歉，但似乎很多人聽不到我們的聲音，聽不到電話。我會請您掛斷電話並再撥過來，我們將暫停通話一秒鐘。謝謝。

Ladies and gentlemen, apologies. Please remain connected. David, we will dial out to you and reconnect on your line. Ladies and gentlemen, participants please remain connected. We will reconnect the speaker line. David will dial out to you momentarily.

女士們先生們，抱歉。請保持聯繫。 David，我們將撥打您的電話並重新連接您的線路。女士們、先生們，請與會者保持聯繫。我們將重新連接揚聲器線。 David 將立即撥通您的電話。

Thank you for holding, ladies and gentlemen. We do apologize. Please remain on the line. The Steel Dynamics conference call will resume shortly. And the speaker line is now reconnected.

謝謝你們的支持，女士們先生們。我們深表歉意。請保持通話。 Steel Dynamics 電話會議將很快恢復。現在揚聲器線路已重新連接。

Sorry about that folks, we'll just continue from where you were.

抱歉，各位，我們將從你們所在的地方繼續。

Again. Apparently, I believe you heard everything that's been said, but it's very, very choppy. So obviously, we'll clarify things in the Q&A that perhaps you didn't hear. I was just kicking off our steel fabrication platform turned in another strong quarter. That team continues to do an absolutely phenomenal job. So thank you to each and every 1 of them.

再次。顯然，我相信你已經聽到了所說的一切，但它非常非常不穩定。顯然，我們將在問答中澄清您可能沒有聽到的內容。我剛剛啟動我們的鋼鐵製造平台，該平台迎來了另一個強勁的季度。該團隊繼續出色地完成工作。感謝他們每一個人。

We continue to have high expectations for that business, and we believe nonresidential construction markets will continue to be strong in the coming years. Nonresidential starts and build rates are forecast to remain strong through the rest of this year and into '24 and related spending has been higher in 2023 compared to last year at this time.

我們仍然對該業務抱有很高的期望，我們相信非住宅建築市場在未來幾年將繼續強勁。預計非住宅項目的開工率和建設率將在今年剩餘時間內保持強勁，直至 2024 年，且 2023 年的相關支出將高於去年同期。

Continued onshoring of manufacturing businesses, coupled with infrastructure spending and fixed asset investment related to the IRA programs should provide momentum for additional construction spending and extend the whole nonresidential construction cycle. Equally important, our customers tell us demand remains solid and share our perspective.

製造業企業的持續外包，加上與 IRA 計劃相關的基礎設施支出和固定資產投資，將為額外的建築支出提供動力，並延長整個非住宅建設週期。同樣重要的是，我們的客戶告訴我們需求仍然強勁，並同意我們的觀點。

Our steel fabrication order backlog has shortened from its all-time high of over 12 months achieved in 2022, but it remains very strong from a historical perspective, extending into January of 2024 with a strong pricing profile. Current order entry pricing remains resilient, and we expect second half '23 volumes to be comparable to the first half 2023 shipments.

我們的鋼鐵製造訂單積壓量較 2022 年超過 12 個月的歷史最高水平有所縮短，但從歷史角度來看，它仍然非常強勁，一直延續到 2024 年 1 月，且定價狀況強勁。目前的訂單輸入定價仍然具有彈性，我們預計 23 年下半年的出貨量將與 2023 年上半年的出貨量相當。

We also believe average pricing will remain elevated, but possibly drift 10% to 15% lower than average for the first half of the year. Not only a significant contributor itself our fabrication platform provides meaningful pull-through volume for our steel mills, particularly important in softer markets, allowing for higher through-cycle utilization rates compared to our peers. It also provides an effective natural hedge to lower steel prices. Our metals recycling platform achieved a strong second quarter despite price declines. After rising in the first quarter, scrap prices pulled back May through July with shredded scrap prices falling almost $100 a tonne.

我們還認為平均價格仍將保持較高水平，但可能比今年上半年的平均價格低 10% 至 15%。我們的製造平臺本身不僅是一個重要的貢獻者，還為我們的鋼廠提供了有意義的拉動量，這在疲軟的市場中尤其重要，與同行相比，可以實現更高的全週期利用率。它還為降低鋼材價格提供了有效的自然對沖。儘管價格下跌，我們的金屬回收平台第二季度仍表現強勁。在第一季度上漲後，廢鋼價格在 5 月至 7 月期間回落，碎廢鋼價格每噸下跌近 100 美元。

We expect scrap pricing to fluctuate modestly during the second half of the year, perhaps seasonally rising somewhat in the third quarter and moderating again in the fourth. Our metals recycling geographic footprint provides a strategic competitive advantage for our electric arc furnace steel mills and our scrap generating customers.

我們預計下半年廢鋼價格將小幅波動，第三季度可能會季節性上漲，第四季度再次放緩。我們的金屬回收地理足跡為我們的電弧爐鋼廠和廢鋼生產客戶提供了戰略競爭優勢。

In particular, our Mexican volumes competitively advantaged our Columbus and Sinton raw material positions. They will also strategically support aluminum scrap procurement for our future flat-rolled aluminum investments. Our metals recycling team is partnering even more closely with both our steel and aluminum teams to expand scrap segregation capabilities through process and technology solutions. This will preclude prime first scrap supply issues in the future. It will also provide margin enhancement from the aluminum scrap streams and materially increased recycled content of our aluminum sheet products.

特別是，我們的墨西哥產量使我們的哥倫布和辛頓原材料地位具有競爭優勢。他們還將戰略性地支持我們未來扁軋鋁投資的廢鋁採購。我們的金屬回收團隊正在與我們的鋼鐵和鋁團隊更加緊密地合作，通過工藝和技術解決方案擴大廢料分離能力。這將消除未來主要的第一廢鋼供應問題。它還將提高鋁廢料流的利潤率，並大幅增加我們鋁板產品的回收含量。

Our steel operations achieved near record shipments of 3.2 million tonnes and solid financial results in the second quarter. Our steel production utilization rate, excluding Sinton was 93% compared to a domestic industry rate of 76%. Our higher utilization rates have been clearly demonstrated throughout all market cycles and is manifest by our value-added diversified product offerings, which amount to about 70% of our sales today, competitive advantage supply chain solutions, which is driving customer preference and mitigating price volatility, and the support of internal pull-through manufacturing volume.

我們的鋼鐵業務在第二季度實現了接近創紀錄的 320 萬噸發貨量和穩健的財務業績。我們的鋼鐵生產利用率（不包括 Sinton）為 93%，而國內行業的利用率為 76%。我們較高的利用率在所有市場週期中都得到了清晰的體現，這體現在我們的增值多元化產品供應（約占我們目前銷售額的 70%）、競爭優勢供應鏈解決方案（推動客戶偏好並減輕價格波動）以及內部拉動製造量的支持。

Our higher through-cycle utilization rate is a key differentiator and supports our strong and growing through-cycle cash generation capability. and best-in-class financial metrics. Looking forward, backlogs are strong, and the customer order entry is good.

我們較高的整個週期利用率是一個關鍵的差異化因素，並支持我們強大且不斷增長的整個週期現金生成能力。和一流的財務指標。展望未來，積壓情況強勁，客戶訂單錄入情況良好。

Auto production is good with expectations of higher output in 2023 relative to 2022 rates and dealer inventories have improved, but still remain below historical norms. Nonresidential construction remains strong, our long product steel backlogs are solid. Onshoring and infrastructure spending should provide further meaningful support in the coming years. The turn down in residential construction seems to be abating. Oil and gas activity is strong, driving improved orders for OCTG, and solar continues to grow substantially.

汽車生產狀況良好，預計 2023 年產量將高於 2022 年，經銷商庫存有所改善，但仍低於歷史正常水平。非住宅建築依然強勁，我們的長材鋼材積壓量也很充足。在岸和基礎設施支出應在未來幾年提供進一步有意義的支持。住宅建設的下滑似乎正在減弱。石油和天然氣活動強勁，推動了油井管訂單的增加，太陽能繼續大幅增長。

At Sinton, the team achieved positive EBITDA for the second quarter and produced shy of 390,000 tonnes, which is about 52% of full capacity, which is obviously lower than we had planned. But that said, the team has done a phenomenal job to get to that EBITDA positive position. Some of that lack of utilization was being on a single electric arc furnace for a portion of the quarter.

在 Sinton，團隊第二季度實現了正 EBITDA，產量不到 39 萬噸，約為滿負荷產能的 52%，明顯低於我們的計劃。但話雖如此，該團隊已經完成了出色的工作，取得了 EBITDA 的積極地位。利用率不足的部分原因是本季度的一部分時間是在單個電弧爐上。

As we announced on July 1, we experienced equipment issues with the [cast] this year. Repairs are well underway, and we should be restarting within the next few days. Once restarted, we fully expect to progressively ramp up month-over-month to an 80% run rate by the end of the year. The team has demonstrated the key competitive advantages of the mill.

正如我們在 7 月 1 日宣布的那樣，今年我們的[演員]遇到了設備問題。維修工作正在進行中，我們應該會在接下來的幾天內重新啟動。一旦重新啟動，我們完全預計到年底，運行率將逐月逐步提高至 80%。該團隊展示了工廠的關鍵競爭優勢。

We have 4 product dimensional capability. That has been proven all the way out to 84-inch down to the 057 and up to 1-inch thick. Customers are reporting surface quality to be exceptional. Our strip mill design has allowed for the thermal mechanical rolling, allowing the production of higher strength grades with lower alloy content and thus lower costs. Grade 80, grade 100 have been achieved, and we've been approved on and shipped some API grades. And it affirms our technical process choices, and there's no doubt that this is the next-generation electric arc furnace flat-rolled steel technology of choice.

我們有4個產品維度的能力。事實證明，從 84 英寸到 057，厚度最高達 1 英寸。客戶報告表面質量非常出色。我們的帶鋼軋機設計允許進行熱機械軋製，從而可以生產具有較低合金含量的較高強度等級，從而降低成本。已經達到了 80 級、100 級，並且我們已經獲得了一些 API 等級的批准並發貨。這肯定了我們的技術工藝選擇，毫無疑問，這是下一代電弧爐平軋鋼技術的首選。

We have gained strong market acceptance and can sell everything we make and (inaudible). Our exceptional through-cycle operating and financial performance continues to support our cash generation and growth investment strategies relative to our expansion into aluminum, responses from both current and new customers across all market sectors remains incredible. We are developing the mill site to co-locate processing and consuming operations as we have successfully done in Sinton, and we have a number of customers already speaking with us about such opportunities, which would be a competitive and sustainably competitive model for all of us.

我們已經獲得了強烈的市場認可，可以出售我們生產的所有產品（聽不清）。我們卓越的整個週期運營和財務業績繼續支持我們與鋁業務擴張相關的現金生成和增長投資戰略，所有市場領域的現有客戶和新客戶的反應仍然令人難以置信。我們正在開發工廠，將加工和消費業務集中在同一地點，就像我們在辛頓成功做到的那樣，我們有許多客戶已經與我們談論這樣的機會，這對我們所有人來說將是一個具有競爭力和可持續競爭的模式。

To recap the project. It's a 650,000 metric tonne aluminum flat roll facility, which will be located in Columbus, Mississippi, right across the highway essentially from our steel mill there. State-of-the-art facility serving the sustainable beverage and packaging markets, both including body (inaudible) and the automotive arena and industrial sectors.

回顧一下這個項目。這是一座年產 65 萬噸的鋁扁卷工廠，位於密西西比州哥倫布市，與我們當地的鋼廠隔著高速公路相望。最先進的設施，服務於可持續飲料和包裝市場，包括車身（聽不清）以及汽車領域和工業領域。

Specifically, we're targeting 300,000 tonnes of can, 200,000 tonnes of auto and 150,000 tonnes of industrial product. The on-site melt cast slab capacity of 600,000 metric tons will be supported by 2 satellite recycled aluminum slab casting centers. We are purchasing and we should be closing on land, both in San Luis Potosi and central Mexico and also in the Southwest U.S. in the next 2 or 3 weeks.

具體來說，我們的目標是生產30萬噸罐頭、20萬噸汽車和15萬噸工業產品。 60萬噸的現場熔鑄板坯產能將由兩個衛星再生鋁板坯鑄造中心支持。我們正在購買土地，並且應該會在未來 2 到 3 週內關閉聖路易斯波托西和墨西哥中部以及美國西南部的土地。

The mill includes 2 cash lines for automotive, coating line, downstream processing and packaging lines. We expanded the project scope to include additional scrap processing and treatment to maximize aluminum recycled content. All the principal equipment has been ordered, we anticipate rolling mill start up around mid-'25. The Mexico slabs center should be January 1, the '25 and the Southwest U.S. slab center sometime in the first quarter of the '25.

該工廠包括 2 條汽車現金生產線、塗裝生產線、下游加工和包裝生產線。我們擴大了項目範圍，納入了額外的廢料加工和處理，以最大限度地提高鋁的回收含量。所有主要設備均已訂購，我們預計軋機將於 25 年中期左右啟動。墨西哥板坯中心應為 25 年 1 月 1 日，美國西南部板坯中心應為 25 年第一季度的某個時間。

Total project cost, including the recycled slab centers should be $2.5 billion. 100% of that is going to be funded with cash. We expect to add $650 million to $700 million of through-cycle annual EBITDA to the company through that investment, plus around $40 million to $50 million of additional earnings from the Omni recycling platform. And from an investment premise perspective, we just see a market environment not unlike that in the steel industry when we started SDI 30 years ago.

包括回收板中心在內的項目總成本應為 25 億美元。其中100%將由現金資助。我們預計通過這項投資將為公司增加 6.5 億至 7 億美元的全週期年度 EBITDA，再加上 Omni 回收平台帶來的約 4000 萬至 5000 萬美元的額外收入。從投資前提來看，我們看到的市場環境與30年前我們創辦SDI時鋼鐵行業的市場環境沒有什麼不同。

Old assets, little reinvestment, heavy legacy costs, inefficiency and high-cost operations. significant aluminum flat rolled supply deficit is existing today in North America and is expected to grow in the coming years. And we see a real business alignment whereby we can leverage our core competencies of construction strength on operational know-how and our culture to truly leverage and exploit the technology.

資產陳舊、再投資少、遺留成本高、運營效率低、成本高。目前北美地區存在嚴重的鋁扁材供應短缺，預計未來幾年將進一步擴大。我們看到了真正的業務結合，我們可以利用我們的建設實力、運營知識和文化的核心能力來真正利用和利用技術。

We also will be able to leverage Omni's recyclement footprint and maximize recycled content of the product. We believe it's a very, very cost-effective, high return growth for us. And again, the existing and new customer interest and support is quite unbelievable.

我們還能夠利用 Omni 的回收足跡並最大限度地提高產品的回收含量。我們相信這對我們來說是一個非常非常具有成本效益、高回報的增長。再說一次，現有和新客戶的興趣和支持是令人難以置信的。

In closing, we are excited. We're impassioned by the future growth opportunities as they will continue the high returning growth momentum we've consistently demonstrated over the years. And we're celebrating our 30th year in business this August, and there are only better things to come. Our teams are our foundation, and I thank each of them for their passion and their dedication and their commitment. And we are committed to them. I remind those listening today that safety for yourselves, your families and each other is our highest priority. There's nothing more important.

最後，我們很興奮。我們對未來的增長機會充滿熱情，因為它們將延續我們多年來一貫表現出的高回報增長勢頭。今年 8 月，我們將慶祝我們成立 30 週年，而且還會有更好的事情發生。我們的團隊是我們的基礎，我感謝他們每個人的熱情、奉獻和承諾。我們致力於實現這些目標。我提醒今天聽眾，你們自己、家人和彼此的安全是我們的首要任務。沒有什麼比這更重要的了。

Our culture and business model continue to positively differentiate our performance leading to best-in-class financial metrics. As I said, I think, on the last call, we're no longer a pure steel company, but an integrated metals business providing an enhanced supply chain solutions to the industry, which in turn, mitigates volatility in cash flow generation through all market cycles. We're competitively positioned and continue to focus on providing superior value for our company, customers, team members and shareholders alike. We look forward to creating new opportunities for all of us today and in the years ahead.

我們的文化和商業模式繼續積極地使我們的業績脫穎而出，從而實現一流的財務指標。正如我所說，我認為，在最後一次通話中，我們不再是一家純粹的鋼鐵公司，而是一家綜合金屬企業，為該行業提供增強的供應鏈解決方案，從而減輕所有市場週期中現金流生成的波動性。我們處於競爭地位，並將繼續專注於為我們的公司、客戶、團隊成員和股東等提供卓越的價值。我們期待著為今天和未來的所有人創造新的機會。

So with that said, Holly, we would love to hand the call over to you and start the Q&A session.

話雖如此，Holly，我們很樂意將電話轉交給您並開始問答環節。

(Operator Instructions) Your first question is coming from Curt Woodworth at Credit Suisse.

（操作員說明）您的第一個問題來自瑞士信貸銀行的 Curt Woodworth。

Mark and Theresa. Mark, you talked about fab pricing. You said it would be roughly 10% to 15% lower in the back half of the year versus the first half, which seems to put realized pricing around the $4,100 per tonne level. Can you help us understand maybe the cadence of how that would shake out between 3Q and 4Q?

馬克和特蕾莎。馬克，你談到了晶圓廠定價。您說今年下半年的價格將比上半年低約 10% 至 15%，這似乎使實際價格在每噸 4,100 美元左右。您能否幫助我們了解第三季度和第四季度之間的節奏？

And then you noted the backlog for fabrication is extending into 2024. Are you seeing any evidence of price stabilization at this point in terms of how the backlog is shaping up in the [early] part of next year.

然後您注意到製造積壓將延續到 2024 年。就明年初積壓的情況而言，目前您是否看到任何價格穩定的證據？

Thanks, Curt. This is Theresa. So I appreciate the question. When Mark said that the average pricing was expected to be down 10% to 15%, that was just for clarity for everyone on the call, that was measuring the first half of 2023 to the second half of 2023. So it wasn't specific to a point in time or specific to the second quarter itself. And we would say that we expect the cadence to be pretty equal from that step down in the third quarter and then stepping down a bit finally into the fourth quarter.

謝謝，柯特。這是特蕾莎。所以我很欣賞這個問題。當 Mark 表示平均價格預計將下降 10% 至 15% 時，這只是為了讓參加電話會議的每個人都清楚起見，這是在衡量 2023 年上半年到 2023 年下半年。因此，這並不是特定於某個時間點或特定於第二季度本身。我們會說，我們預計從第三季度的下降到第四季度的最後下降，節奏將相當相等。

Pricing is stable. It's been very -- I think the term we keep using is resilient, and that's something that we've pointed to in the past. We think there's been a structural shift in pricing for steel fabrication as there's really a lack of substitutability when you think about steel joist and deck and there is a very good demand today and we think increasing demand with the momentum behind manufacturing for all the different reasons that we pointed to this morning.

定價穩定。我認為我們一直使用的術語是“彈性”，這也是我們過去指出的。我們認為，鋼鐵製造的定價發生了結構性轉變，因為當你想到鋼托樑和甲板時，確實缺乏可替代性，而今天的需求非常好，我們認為，由於我們今天早上指出的各種不同原因，需求隨著製造業背後的動力而增加。

The backlog has a good pricing, very strong pricing from a historical perspective. And I think that we see that heading very favorably into the first quarter. And frankly, we were just talking about it this morning, as you think about a lot of the public monies in those programs, those are being awarded, especially with the IRA and some of the Department of Labor dollars.

積壓訂單具有良好的定價，從歷史角度來看，定價非常強勁。我認為我們看到第一季度的進展非常順利。坦率地說，我們今天早上剛剛討論過這個問題，當你想到這些計劃中的大量公共資金時，這些資金正在被授予，特別是愛爾蘭共和軍和勞工部的一些資金。

Those are getting awarded sometime this fall, kind of call it late third quarter, early fourth quarter. So that should really benefit 2024 and 2025 as you think about manufacturing and construction. And definitely, steel fabrication will benefit from that.

這些獎項將在今年秋天的某個時候獲得，可以稱之為第三季度末、第四季度初。因此，當你考慮製造業和建築業時，這應該真正有利於 2024 年和 2025 年。毫無疑問，鋼鐵製造將從中受益。

Okay. And then in terms of the volume guidance, it seems like volumetrically you're still expecting year-on-year declines in kind of the 15% to 20% level and you noted some project delays. Can you just kind of comment on within the backlog, or I guess, projects that have been burning off?

好的。然後就數量指導而言，從數量上看，您似乎仍預計同比下降 15% 至 20% 的水平，並且您注意到一些項目延遲。您能否對積壓的項目（或者我猜是已經燒毀的項目）發表評論？

Are there certain pockets of weakness you're seeing that are greater than others. Obviously, there's been kind of a lot of talk on some of the warehouse spending dying down, but data centers and other areas seem to be really strong. So any color you can give on that would be helpful. And then just as a follow-up, can you give a comment on what you think capital spending for 2024 would be.

您是否發現某些弱點比其他弱點更大？顯然，關於一些倉庫支出逐漸減少的討論很多，但數據中心和其他領域似乎非常強大。所以你可以賦予它任何顏色都會有幫助。作為後續行動，您能否評論一下您認為 2024 年的資本支出會是多少。

Thanks, Curt. Yes. So as it relates to the mix of the backlog and I would say more so even in the current order intake activity. We have seen -- and I think it's positive for the economy in general. We've seen more projects coming in from, whether it be education, health care, definitely manufacturing. So we're starting to even see the electric vehicle batteries.

謝謝，柯特。是的。因此，由於它與積壓的混合有關，即使在當前的訂單接收活動中，我也會說更多。我們已經看到了——我認為這對整體經濟是積極的。我們看到更多的項目來自，無論是教育、醫療保健，還是製造業。所以我們甚至開始看到電動汽車電池。

We've seen the chips, we've seen a lot of advent and manufacturing from onshoring new things that we've talked about. So there is a mix towards those type of projects and away from just purely retail warehouses, which we've been seeing and talking about for a while now, probably 6 to 9 months. As it relates to capital spending for 2024 we expect to have capital spending for the aluminum project this year is likely to be somewhere between $900 million and $950 million in total. Next year for the aluminum project it's likely to be about $1.2 billion. So when you combine that with additional growth projects as well as a minimal amount of maintenance capital.

我們已經看到了芯片，我們已經看到了我們所討論的許多新事物的出現和製造。因此，這些類型的項目是混合的，而不僅僅是純粹的零售倉庫，我們已經看到並討論了一段時間，可能是 6 到 9 個月。由於與 2024 年的資本支出相關，我們預計今年鋁項目的資本支出總額可能在 9 億至 9.5 億美元之間。明年鋁項目的投資額可能約為 12 億美元。因此，當您將其與額外的增長項目以及最少的維護資本結合起來時。

We're likely to have total capital spending in 2024 from what we can see today, still around that $1.5 billion for the year.

從目前的情況來看，2024 年的資本支出總額可能仍約為 15 億美元。

Your next question for today is coming from Cleveland Rueckert at UBS Securities.

今天你們的下一個問題來自瑞銀證券的克利夫蘭·呂克特。

Maybe just 1 sort of on the aluminum side. I guess just looking at your budget and sort of outlook for demand there. Recently, there's been a downturn in aluminum can demand and that industry has been, I guess, a little bit disrupted. I'm wondering if that's at all concerning to you and if you've adapted your demand forecast at all.

也許只是鋁側的一種。我想只是看看你的預算和那裡的需求前景。最近，鋁罐需求下降，我想該行業受到了一些干擾。我想知道這是否與您有關，以及您是否已經調整了需求預測。

Absolutely not. We remain very, very bullish now. If you go back like a year now, perhaps the folks were projecting that demand would grow and you need 4 new aluminum mills. We didn't believe that then. We don't believe that now. But we certainly feel there's more space than to satisfy our market share for sure.

絕對不。我們現在仍然非常非常樂觀。如果你回到一年前，也許人們預測需求會增長，你需要 4 個新的鋁廠。那時我們還不相信。我們現在不相信了。但我們確實認為還有更多的空間來滿足我們的市場份額。

The kind of the -- the sort of the pull back, I would say, is more an inventory standpoint. There's a lot of inventory people panicked a lot last year. That inventory has to flow through the system. And there's absolutely no doubt that it is doing so today. And in all honesty, when our mill comes up, I think that the marketplace is going to be in a beautiful place for us to receive product.

我想說，這種回調更多的是庫存的角度。去年庫存很多，讓人很恐慌。該庫存必須流經系統。毫無疑問，今天它正在這樣做。老實說，當我們的工廠建成時，我認為市場將是一個非常適合我們接收產品的地方。

So, when you're going to look longer term, there definitely is a social change away from POC plastic bottles that will continue. It's not just beer, it's water, it's all fluids. And then when you look at the automotive arena, we believe and we've -- with our communications with virtually all the automotive folks, they have been restrained from developing greater volumes of aluminum through the lack of availability. We're providing that availability going forward.

因此，從長遠來看，遠離 POC 塑料瓶的社會變革肯定會持續下去。這不僅僅是啤酒，還有水，都是液體。然後，當你看看汽車領域時，我們相信並且我們已經 - 通過與幾乎所有汽車行業人士的溝通，他們因缺乏可用性而無法開發更多的鋁。我們將繼續提供這種可用性。

And I think we -- just as we've done in steel, we will gain market share quite rapidly. So from a market perspective, we are still very bullish that the amount of interest we have across the aluminum space is incredible. And I think I said it on our last call, in steel, we've never entered a market that is underserved. Every market we've gone into, we've had to differentiate ourselves to gain market share. It's refreshing for us that people are actually coming to us and when you combine that need with our ability to change the supply chain to provide much greater value to the customer base, I think we're confident to gain that market share quite rapidly.

我認為，就像我們在鋼鐵行業所做的那樣，我們將很快獲得市場份額。因此，從市場角度來看，我們仍然非常看好我們對鋁領域的興趣是令人難以置信的。我想我在上次電話會議上說過，在鋼鐵領域，我們從未進入過一個服務不足的市場。我們進入的每個市場都必須使自己與眾不同才能獲得市場份額。讓我們感到耳目一新的是，人們實際上來找我們，當你將這種需求與我們改變供應鏈的能力結合起來，為客戶群提供更大的價值時，我認為我們有信心很快獲得市場份額。

Cleve, just as a quick reminder. In the last several years, they've had domestically the consumers of aluminum sheet actually had to import about 20% of their needs, and that had a high tariff associated with that imported costs. So there's definitely room for just [650,000] tonnes of additional supply.

克利夫，只是作為一個快速提醒。在過去的幾年裡，國內鋁板消費者實際上需要進口約 20% 的需求，而進口成本卻伴隨著高額關稅。因此，肯定還有[650,000]噸額外供應的空間。

Good. Got it. I appreciate the confidence. And if I may just sneak in 1 follow-up question on Sinton. I think you had to replace a bearing on the caster. I'm just wondering if you've got -- I didn't hear it in the prepared remarks that maintenance work has been done and (inaudible) back on schedule.

好的。知道了。我很欣賞這種信心。我可以順便問一個關於 Sinton 的後續問題嗎？我認為你必須更換腳輪上的軸承。我只是想知道您是否——我在準備好的發言中沒有聽到維護工作已經完成並且（聽不清）已按計劃恢復。

Yes, this is Barry. I'd just like to comment that those bearing issues we talked about at the tail end of last year, our teams mitigated most of the effects of that. We have a supply chain now that is both a more robust design and a [work] more robust supply chain. So we're really excited about the quality improvements and really the reliability of those casting segment parts.

是的，這是巴里。我只想評論一下，我們在去年年底討論過的那些軸承問題，我們的團隊減輕了大部分影響。我們現在擁有一條設計更穩健的供應鏈，也是一條更穩健的供應鏈。因此，我們對這些鑄造部件的質量改進和可靠性感到非常興奮。

We believe our long-term plans, we kind of approached it with several different prongs. And all of them are really being successful and it's to the point now that we can manage it very well and we're operating at full capacity, as Mark spoke, all capabilities of the machine right now are in place.

我們相信我們的長期計劃，我們從幾個不同的方面來實現它。所有這些都確實取得了成功，現在我們可以很好地管理它，並且我們正在滿負荷運轉，正如馬克所說，機器的所有功能現在都已到位。

So we believe long term, that's going to be not an issue going forward that it will just continue to be high reliability and continuing high quality.

因此，我們相信，從長遠來看，這將不再是一個問題，它將繼續保持高可靠性和持續的高質量。

But didn't -- wasn't there an unplanned outage very recently?

但最近不是發生了意外停電嗎？

Yes, that -- we had a [caster sheer] issue just here at the beginning of July, not related to the bearing issue, perhaps as you mentioned with the casting machine. And it's kind of a technical issue with the caster sheer . And suffice to say is it's large parts that we wanted to make sure we had put in properly and we are taking this opportunity to address a couple of other issues, but we anticipate that facility being up and operational in the next few days.

是的，我們在七月初就遇到了[腳輪純粹]問題，與軸承問題無關，也許正如您在鑄造機中提到的那樣。這是後傾角的一個技術問題。可以說的是，我們希望確保我們已經正確安裝了大部分部件，並且我們正在藉此機會解決其他一些問題，但我們預計該設施將在未來幾天內啟動並投入運行。

Our team has done a phenomenal job for working together and getting this the scope of a project. We're super excited. Mark and I were down there for moral support, definitely not getting in the way of the guys making the repairs. But great to see this team just really owning their technology and bringing it forward. So we anticipate this problem to be behind us. And we think we've put in really good things to mitigate any future failures that are similar to this.

我們的團隊在共同努力並將其納入項目範圍方面做得非常出色。我們非常興奮。馬克和我在那裡尋求道義上的支持，絕對不會妨礙修理人員。但很高興看到這個團隊真正擁有自己的技術並將其向前發展。所以我們預計這個問題已經過去了。我們認為我們已經投入了非常好的東西來減輕未來類似的失敗。

Your next question is coming from Tristan Gresser with Exane BNP Paribas.

您的下一個問題來自法國巴黎銀行 Exane 的 Tristan Gresser。

Yes. The first 1 is maybe on the steel side. Can you tell us a little bit about the volume outlook into Q3. I noticed loan volumes were down on a year-on-year basis in Q2. So should we expect some pickup there? And with the Sinton outage, how should we think, generally speaking, for steel shipments into Q3? That's my first question.

是的。第一個 1 可能位於鋼側。您能否告訴我們一些有關第三季度銷量前景的信息？我注意到第二季度的貸款量同比下降。那麼我們應該期待那裡有一些回升嗎？隨著 Sinton 停運，一般來說，我們應該如何看待第三季度的鋼鐵出貨量？這是我的第一個問題。

Tristan, this is Theresa. Thanks for the question. So we -- generally, we don't give guidance as it relates to specifics on shipments. And if you look historically, the third quarter is going to be generally the strongest shipment quarter. that we have in shipments for steel simply because of seasonality.

特里斯坦，這是特蕾莎。謝謝你的提問。因此，一般來說，我們不會提供與運輸細節相關的指導。如果你回顧歷史，第三季度通常將是出貨量最強勁的季度。我們的鋼材出貨量僅僅是因為季節性。

Sinton is going to be down for July. We are still running the coal mill and the value add lines, which will help to place some of the lost volume. But we're likely to have lost volume of anywhere between 50,000 and 70,000 tonnes of total steel shipments as it relates to the sheer outage in July. Other than that, we really can't give you any additional guidance, but as Mark mentioned, the backlogs across the steel platform are very strong and order activity has been very good.

辛頓將在七月停業。我們仍在運營磨煤機和增值生產線，這將有助於彌補部分損失的產量。但由於 7 月份的停電，我們的鋼鐵總出貨量可能會減少 50,000 至 70,000 噸。除此之外，我們確實無法給您任何額外的指導，但正如馬克提到的，整個鋼鐵平台的積壓訂單非常強勁，訂單活動也非常好。

Okay. No, that's helpful. And maybe a quick follow-up just on the fabrication business. You mentioned that joist and deck spot prices have stopped falling, at which level exactly you're seeing them now.

好的。不，這很有幫助。也許只是對製造業務進行快速跟進。您提到托樑和甲板現貨價格已經停止下跌，您現在看到的正是這個水平。

Tristan, we can't give specific pricing related to, the commercial teams would be after me. So I think what we said about pricing for fabrication is that the pricing has been very resilient. We have strong pricing in the backlog, but we did mention that there are expectations that pricing on average from -- compared to the first half of the year, pricing on average for the second half of the year is likely to be down 10% to 15%, but we do believe pricing is stable, and it's been very resilient.

特里斯坦，我們無法給出相關的具體定價，商業團隊會追隨我。所以我認為我們所說的製造定價是定價非常有彈性。我們在積壓訂單中定價強勁，但我們確實提到，與上半年相比，下半年的平均定價可能會下降 10% 至 15%，但我們確實相信定價是穩定的，而且非常有彈性。

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

您的下一個問題來自摩根士丹利的卡洛斯·德阿爾巴。

So just on pricing as well. Maybe you can provide some color even without giving those details. What we have seen in the benchmark information is how [deep] galvanized prices have been recently below the substrate cold-rolled coil prices, which is a little bit weird and obviously not sustainable. But can you provide some color as to whether you are also seeing that in your realized prices for these products? And 1 might explain this (inaudible) situation?

所以也只是在定價上。也許即使不提供這些細節，您也可以提供一些顏色。我們在基准信息中看到的是，最近鍍鋅價格[深度]低於基材冷軋卷價格，這有點奇怪，顯然不可持續。但您能否提供一些信息，說明您是否也在這些產品的實際價格中看到了這一點？ 1 可以解釋這種（聽不清）情況嗎？

Yes. Carlos, thanks for the question. The marketplace is a little frothy right now. I would tell you the recent -- the most recent change here in the CRU downward here yesterday or the day before in our mind, doesn't represent the market dynamics that's going on at [right now].

是的。卡洛斯，謝謝你的提問。現在市場有點泡沫。我想告訴你，在我們看來，昨天或前天 CRU 最近的下跌並不代表（現在）正在發生的市場動態。

All right. Okay. And then just on Sinton, I wanted to confirm that you still expect the cost of the recent outage to be around $1 million, which is pretty significant. And when would you expect to reach closer to 100% capacity utilization, if that is your intent or you believe or you want to stay around 80% that you will reach towards the end of the year?

好的。好的。然後就 Sinton 而言，我想確認您仍然預計最近的停電成本約為 100 萬美元，這是相當可觀的。如果這是您的意圖，或者您相信或希望在年底前保持在 80% 左右，那麼您預計什麼時候能夠接近 100% 的產能利用率？

Well, the -- actually, the outage -- the actual specific cost it was well under $1 million. It -- as Barry said, the issue was just getting parts and just the size of the equipment involved, it wasn't necessarily a large expense to repair.

嗯，實際上，停電的具體成本遠低於 100 萬美元。正如巴里所說，問題只是獲取零件以及所涉及設備的大小，維修費用不一定很高。

And the second part of that, sorry. Well, again, as you saw or as you heard from our comments, we're just tempering our expectations. We've always had high expectations. And we just believe once we get up and running here in the next few days, we were at -- when we shut down 52%, 55% or thereabouts we're just suggesting now that month-over-month, we're going to progressively ramp up to that 80% by the end of the year. And then into next year, we'll continue to incrementally ramp up to full production through '24.

抱歉，第二部分。好吧，再說一次，正如您在我們的評論中看到或聽到的那樣，我們只是在降低我們的期望。我們一直抱有很高的期望。我們相信，一旦我們在接下來的幾天裡啟動並運行，當我們關閉 52%、55% 或左右時，我們只是建議逐月地，到年底我們將逐步提高到 80%。然後到明年，我們將繼續逐步提高產量，直至 2024 年全面生產。

Got it. So in the second half of next year, fourth quarter next year is when you expect to get full capacity then?

知道了。那麼明年下半年、明年第四季度是你們預計滿負荷產能的時候嗎？

No, Carlos. I would say that's not what Mark meant, so what Mark said is that we're going to have kind of an even pace we expect of ramp-up in the second half of this year for 2023 to get up to that 80%. But then we'll reach 100% of capacity very quickly in 2024.

不，卡洛斯。我想說這不是馬克的意思，所以馬克所說的是，我們預計將在今年下半年以均勻的速度增長，到 2023 年達到 80%。但到 2024 年，我們將很快達到 100% 的產能。

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

今天的下一個問題來自 Wolfe Research 的 Timna Tanners。

I wanted to just ask a little bit more about the cadence of added supply that you've outlined on the new coating and painting lines. Like should we start modeling contribution immediately in the third quarter? Will that be more fourth and first quarter weighted? And then I have a second question.

我想多問一點關於您在新塗層和噴漆生產線上概述的增加供應的節奏。就像我們應該在第三季度立即開始建模貢獻一樣嗎？第四季度和第一季度的權重會更大嗎？然後我還有第二個問題。

Timna, this is Barry. We're anticipating bringing the new coating and the galvanizing lines, paint lines on at the end of the year, but I wouldn't expect any kind of a significant contribution to shipment still going into 2024. But the lines are constructing very well. There continues to be supply chain issues with certain parts of the construction, but we're resolving those and mitigating them and moving stuff, teams are very active and manned up. So we look forward to bringing these lines on, but it will be near the end of the year.

蒂姆納，這是巴里。我們預計將在今年年底引入新的塗層、鍍鋅生產線、噴漆生產線，但我預計 2024 年不會對發貨量產生任何重大貢獻。但這些生產線建設得非常好。施工的某些部分仍然存在供應鏈問題，但我們正在解決這些問題並減輕它們並移動東西，團隊非常活躍並且人員配備齊全。因此，我們期待著這些線路的開通，但要到年底才能開通。

Okay. Helpful. Appreciate that. And then my only other question was just an update on your export activity and just how that's trending. I know you've been pretty active shipping to Mexico. Just wondering if there's anything new there.

好的。有幫助。感謝。然後我唯一的另一個問題就是你們的出口活動的最新情況以及趨勢如何。我知道你們一直非常積極地運送到墨西哥。只是想知道那裡是否有什麼新東西。

From -- other than a small little bit of nonferrous, we have no export activity other than Mexico.

除了少量有色金屬之外，我們除了墨西哥以外沒有任何出口活動。

Yes. Timna, this is Barry again. We've been doing quite a bit of shipments into Mexico this year. Sinton is uniquely -- the capabilities of Sinton are unique for what the Mexican markets are. So being able to get some heavier gauge products and wider product down there has been a very good place for us to develop relationships. So we've been down and shipping to Mexico for a long time, but significantly so in the first half of this year, and we continue to do more of that, especially through our campus partners at the Sinton facility.

是的。蒂姆納，這又是巴里。今年我們向墨西哥發貨了相當多的貨物。 Sinton 是獨一無二的——Sinton 的能力對於墨西哥市場來說是獨一無二的。因此，能夠在那裡獲得一些更重規格的產品和更寬的產品，對我們來說是發展關係的一個非常好的地方。因此，我們長期以來一直在向墨西哥運送貨物，但今年上半年尤其如此，我們將繼續做更多這樣的事情，特別是通過辛頓工廠的校園合作夥伴。

So we see that as a really good business and continuing to grow forward.

因此，我們認為這是一項非常好的業務，並且會繼續向前發展。

We certainly capitalized a little on the AMSA situation down there. And even as they restart, and obviously, there's a lot of projections as to how quickly they restart -- if they restart. But we're quite confident that the customer base there around AMSA selling Monclova has recognized that single sourcing is a huge mistake. And even with an AMSA start up, we're going to continue to secure a lot of that business that we've -- and market share that we've gained.

我們當然利用了 AMSA 那裡的情況。即使它們重新啟動，顯然，也有很多關於它們重新啟動的速度的預測——如果它們重新啟動的話。但我們非常有信心，AMSA 銷售 Monclova 的客戶群已經認識到單一採購是一個巨大的錯誤。即使有了 AMSA 初創公司，我們也將繼續確保我們已經擁有的大量業務以及我們已經獲得的市場份額。

Your next question is coming from Bill Peterson at JPMorgan.

您的下一個問題來自摩根大通的比爾·彼得森。

I wanted to ask you about the decarbonization strategy. You put some information on the [charts] on bio-carbon initiatives. I mean, you discussed the operations by early 2024. But just to confirm, I guess, has the plant construction begun? Or are there any other areas to prove out or technical readiness issues to address? That's the first question.

我想問你有關脫碳戰略的問題。您在生物碳倡議的[圖表]上添加了一些信息。我的意思是，你們討論了 2024 年初的運營情況。但我想只是為了確認工廠建設是否已經開始？或者還有其他需要證明的領域或需要解決的技術準備問題嗎？這是第一個問題。

Thanks, Jim. So the -- the bioreduct and biocarbon facility is actually going really well. The teams have done a lot of groundwork already. The major equipment is either has been ordered or is on order and some of it is actually going to be received fairly shortly. So the team is doing a phenomenal job.

謝謝，吉姆。因此，生物還原和生物碳設施實際上進展順利。團隊已經做了很多基礎工作。主要設備要么已經訂購，要么正在訂購，其中一些實際上很快就會收到。所以這個團隊做得非常出色。

I'm very proud of them in Mississippi and the expectations are that it will start before the end of 2024. There's nothing left to prove as far as the product itself. There is a facility in Marquette, Michigan that Aymium operates, which is the technology provider. And we've tested the product extensively, both for injection and charge carbon. So we don't have any expectations for anything other than a wonderful product that we can replace eventually 100% or a very large portion thereof of our [anthracite] usage going forward. So everything is going really, really well.

我為密西西比州的他們感到非常自豪，預計它將在 2024 年底之前啟動。就產品本身而言，沒有什麼可以證明的了。 Aymium 在密歇根州馬凱特設有一家工廠，是技術提供商。我們對該產品進行了廣泛的測試，包括噴射碳和充碳。因此，除了最終可以 100% 或很大一部分取代我們的[無菸煤]使用的出色產品之外，我們對任何東西都沒有任何期望。所以一切都進展得非常非常順利。

Yes, appreciate that. And I forgot to ask what do you expect in terms of the cost on that. But compared to traditional. But I guess my second question is, as we think about this additional galvanized capacity, you mentioned kind of end of the year and then more contribution for next year. But I guess, how is your view given that there's also another -- a lot of other plant capacity coming to market? What's the risk you might see in terms of lower prices longer term with the additional capacity from competitors in the space in -- so with that kind of inform you [indiscernibe].

是的，很感激。我忘了問你對此的成本有何期望。但相比傳統。但我想我的第二個問題是，當我們考慮這種額外的鍍鋅產能時，您提到了年底的情況，然後是明年的更多貢獻。但我想，鑑於還有另一個——大量其他工廠產能進入市場，您對此有何看法？從長遠來看，隨著該領域競爭對手的額外產能，您可能會看到更低的價格，從而帶來什麼風險——因此，請告知您[難以辨別]。

Let me address the cost of the bio facility and then Barry and Mark can take the galvanizing pricing question. We believe we're still kind of fine point on it, but it's likely to cost somewhere between $200 million and $230 million for the entire project. But remember, it is a joint venture that we have with Aymium. And so we have 75% ownership of the facility and Aymium has 25% of the facility.

讓我來談談生物設施的成本，然後巴里和馬克可以回答令人興奮的定價問題。我們相信我們在這方面仍然做得很好，但整個項目的成本可能在 2 億至 2.3 億美元之間。但請記住，這是我們與 Aymium 的合資企業。因此，我們擁有該設施 75% 的所有權，Aymium 擁有該設施 25% 的所有權。

And relative to the concern of overcapacity in almost the -- over the years now, perhaps I've been in the industry too long. But everyone -- it wasn't so long ago that there was going to be overcapacity in the iron ore business and (inaudible) going to go down to $35 a tonne. And then it was the sheet issue where I think everyone is recognizing now that with the continued shutdown of the old inefficient high-cost assets in the integrated business in the country.

相對於近幾年來對產能過剩的擔憂，也許我在這個行業呆得太久了。但大家都知道——不久前，鐵礦石行業還出現產能過剩，並且（聽不清）價格將跌至每噸 35 美元。然後是票據問題，我認為現在每個人都認識到，隨著該國綜合業務中舊的低效高成本資產的持續關閉。

The desire for low carbon product that we're not going to see a material impact to any increase in the sheet market. And I think the same with coated, people are gravitating to produce their parts with more coated. I can remember cars a not so long ago, the outside skin was just galvanized and now you look at a car today and almost every single piece is galvanized.

我們不會看到對低碳產品的渴望對板材市場的任何增長產生重大影響。我認為與塗層一樣，人們傾向於生產具有更多塗層的零件。我記得不久前的汽車，外皮只是鍍鋅，現在你看一輛車，幾乎每一塊都是鍍鋅的。

So demand is increasing for sure. The world is getting lighter gauge galvanized and so the line time of goes up and thus the actual sort of effective throughput of a line -- lines are going down today. So we're not overly concerned.

所以需求肯定會增加。世界上的鍍鋅規格越來越輕，因此生產線時間增加，因此生產線的實際有效吞吐量 - 今天的生產線正在下降。所以我們並不過分擔心。

Your next question is coming from John Tumazos at Very Independent Research.

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

In planning Sinton, you have 1.8 million tonnes of customers on your campus. The buy end to the distributor based in Houston, for coating lines as well as the customer opportunities in Mexico, you were describing more than the 3 million-tonne capacity. As you're ramping up how are you allocating the volume among those customers? It appears as though there's more customers in tonne output.

在規劃 Sinton 時，您的園區內有 180 萬噸客戶。對於位於休斯敦的經銷商的買方，對於塗裝線以及墨西哥的客戶機會，您描述的產能超過 300 萬噸。當您的業務量增加時，您如何在這些客戶之間分配數量？看來噸產量的客戶更多了。

What specifications have you been not yet gotten to melting and casting and rolling in terms of chemistries, gauges, width, et cetera?

在化學成分、規格、寬度等方面，您尚未獲得熔化、鑄造和軋製的哪些規格？

John, this is Barry. As far as the product dimensions, we've explored everything that we believe we needed to do. So we're doing light gauge to heavy stuff full with the products. We've done many different of the metallurgical needs from vacuum to gas products all the way up through the range of different steels we would make. We are minded to do automotive there, but those types of trials require us to really get an idea of what our line capabilities are. So we are doing those.

約翰，這是巴里。就產品維度而言，我們已經探索了我們認為需要做的一切。因此，我們正在生產從輕型到重型的產品。我們已經滿足了許多不同的冶金需求，從真空到氣體產品，一直到我們生產的各種不同鋼材。我們有意在那裡做汽車業務，但這些類型的試驗要求我們真正了解我們的生產線能力。所以我們正在做這些。

We are doing the same with the API type products. And that requires us to have confidence in the data so that we design the best products to go into trials. We do have customers in both areas taking material. So we're doing it in a very controlled manner to make sure that again, we are understanding the unique capabilities that Sinton has. So at this point, the broad swath of products, we've done something for almost every single thing we hope to sell.

我們對 API 類型的產品也做了同樣的事情。這要求我們對數據充滿信心，以便我們設計出最好的產品進行試驗。我們確實在這兩個領域都有客戶在獲取材料。因此，我們以一種非常可控的方式進行，以確保我們再次了解 Sinton 所擁有的獨特能力。因此，到目前為止，我們已經為幾乎所有我們希望銷售的產品做了一些事情。

And it's more about getting more data, getting more characteristics from how we produce those things. And at the same time, establishing those internal, how we process things is very important. Just this week, the ISO certification audits are going on. So it's very important that we do this as our customers expect. But right now, good progress. We're excited by it. and we will look to optimize each of our units. So we've always had a very diversed order book so that we have many small markets that we can participate in.

更重要的是獲取更多數據，從我們生產這些東西的方式中獲取更多特徵。與此同時，建立內部的處理方式也非常重要。就在本週，ISO認證審核正在進行中。因此，按照客戶的期望行事非常重要。但現在，進展良好。我們對此感到興奮。我們將尋求優化我們的每個單元。因此，我們一直擁有非常多樣化的訂單簿，因此我們有許多可以參與的小型市場。

So we're focused on making sure that we're feeding all the different buckets, keeping all of our lines operational as we ramp up and bring these new coating lines online. So it's a very controlled structure, and we're trying to be very respective to the customer base that's very anxious to receive these products.

因此，我們專注於確保為所有不同的桶提供原料，在我們加大力度並將這些新的塗裝線上線時保持所有生產線的運行。因此，這是一個非常受控的結構，我們正在努力滿足非常渴望收到這些產品的客戶群。

Yes, John, the I guess we remain (inaudible). Hopefully, you can hear us still. But we remain incredibly excited by what we've seen in Sinton. As I said earlier, we can sell everything we can make and a whole bunch more. We're really excited about the additional galv line and pre-paint line down there that will allow us to, as we've done at Columbus and Butler diversify the product mix and bring even more value add to it.

是的，約翰，我想我們會留下來（聽不清）。希望您仍然能聽到我們的聲音。但我們對在辛頓所看到的一切仍然感到非常興奮。正如我之前所說，我們可以出售我們能生產的所有產品，甚至更多。我們對那裡額外的鍍鋅生產線和預塗裝生產線感到非常興奮，這將使我們能夠像我們在哥倫布和巴特勒所做的那樣，使產品組合多樣化，並為其帶來更多附加值。

The energy products, the ability to film a mechanical role produce those higher strength [freers] the high tough grades at lower cost is working incredibly well. And that's going to be a great market for us down there. And those products are value-add it may be hot band, but you accrue a good premium for those products. And we're also seeing in the plate arena, great potential then. One of the on-site processes that you mentioned that we co-locate is a real heavy plate cutter length line. And we feel there's going to be massive opportunity there, particularly as the infrastructure growth occurs and plate is going to be a big component in that. So Sinton, it's incredible. One needs to go there to really experience it. The equipment reliability issues are frustrating, but it's absolutely a stated art mill. The team is excited. They will get that thing running for blast in time. And it will be the technology of choice going forward.

能源產品、薄膜機械作用的能力以較低的成本生產出更高強度的高韌性等級，效果非常好。這對我們來說將是一個巨大的市場。這些產品是增值產品，可能是熱門產品，但您可以從這些產品中獲得很高的溢價。我們也看到了板材領域的巨大潛力。您提到的我們位於同一地點的現場流程之一是一條真正的厚板切割機長度線。我們認為那裡將存在巨大的機會，特別是隨著基礎設施的增長，而板材將成為其中的重要組成部分。所以辛頓，這太不可思議了。需要去那裡才能真正體驗到。設備可靠性問題令人沮喪，但它絕對是一家正規的藝術工廠。團隊很興奮。他們會及時讓那東西運行起來。這將是未來的首選技術。

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

我們的問答環節到此結束。我想將電話轉給米利特先生，讓他作結束語。

Thank you. And for those still on the call, our employees, in particular, thank you for what you do each and every day. You do drive a success. We can't do things without you, our customers. Thank you for your loyal support. And our shareholders, thank you, those that are invested in us. We will continue to treat your dollars just like they are our own. We're going to continue to grow them.

謝謝。對於那些仍然在通話中的人，特別是我們的員工，感謝你們每天所做的事情。你確實取得了成功。沒有您，我們的客戶，我們就無法開展工作。感謝您的忠實支持。感謝我們的股東，感謝那些投資於我們的人。我們將繼續像對待我們自己的美元一樣對待您的美元。我們將繼續種植它們。

And we have a huge bright future ahead of us Sinton kicking in the aluminum going forward. The growth momentum continues. So thank you.

Sinton 在鋁業的發展中有著廣闊的前景。增長勢頭仍在持續。所以謝謝。

Once again, ladies and gentlemen, that concludes 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，祝您度過美好而安全的一天。