Steel Dynamics Inc (STLD) 2024 Q2 法說會逐字稿

Good day, and welcome to the Steel Dynamics second-quarter 2024 earnings conference call. (Operator Instructions) Please be advised this call is being recorded today, July 18, 2024, and your participation implies consent to our recording of this call. If you do not agree to these terms, please disconnect.

美好的一天，歡迎參加 Steel Dynamics 2024 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（2024 年 7 月 18 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'd like to turn the conference over to David Lipschitz, Director, Investor Relations. Please go ahead.

這次，我想將會議交給投資人關係總監 David Lipschitz。請繼續。

Thank you, Matt. Good morning, and welcome to Steel Dynamics' second-quarter 2024 earnings conference call. As a reminder, today's call is being recorded and will be available on our website for replay later today. Leading today's call are Mark Millett, Chairman and Chief Executive Officer of Steel Dynamics; Theresa Wagler, Executive Vice President and Chief Financial Officer; and Barry Schneider, President and Chief Operating Officer. The other members of our senior leadership team are joining us on the call individually.

謝謝你，馬特。早安，歡迎參加 Steel Dynamics 2024 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 董事長兼執行長 Mark Millett 主持。 Theresa Wagler，執行副總裁兼財務長；以及總裁兼營運長巴里·施奈德。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 risk and uncertainties related to integrating or starting up new assets; the aluminum industry; the use of estimates and assumptions in connection with anticipated project returns; and our steel, metals recycling, and fabrication businesses; as well as the general business and economic conditions.

此類陳述涉及與整合或啟動新資產相關的風險和不確定性；鋁工業；使用與預期項目回報相關的估計和假設；以及我們的鋼鐵、金屬回收和製造業務；以及一般商業和經濟狀況。

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 inapplicable in any later SEC Form 10-Q.

這些例子在相關新聞稿以及我們每年提交的SEC 表格10-K 中都有描述，標題為“前瞻性陳述和風險因素”，可在互聯網www.sec.gov 上找到，並且不適用於任何後續的SEC表格 10-Q。

You'll also find any referenced non-GAAP financial measures reconcile to the most directly comparable GAAP measures in the press release issued yesterday entitled Steel Dynamics Report Second Quarter of 2024 Results.

您還會發現，任何引用的非 GAAP 財務指標均與昨天發布的題為《Steel Dynamics 2024 年第二季度業績報告》的新聞稿中最直接可比的 GAAP 指標相一致。

Now I'm pleased to turn the call over to Mark.

現在我很高興將電話轉給馬克。

Thank you, David. Good morning, everyone. Appreciate you being with us on our second-quarter '24 earnings call. As you likely read, our teams achieved a solid second quarter financial and operational performance. I think most gratifying was achieving another great quarter for safety. Teams have been commissioning and ramping up four new value-add flat-roll steel coating lines at a record rapid pace, which is adding 1.1 million tonnes of higher-margin product diversification.

謝謝你，大衛。大家，早安。感謝您參加我們 24 年第二季的財報電話會議。正如您可能讀到的，我們的團隊在第二季度取得了穩健的財務和營運表現。我認為最令人高興的是安全方面又實現了一個偉大的季度。團隊以創紀錄的速度調試和提高了 4 條新的增值平卷鋼塗層生產線，增加了 110 萬噸高利潤的產品多樣化。

Though experiencing some challenges in the second quarter, the Sinton team continues to make progress, gaining full access to the melting capacity this past week. Steel shipments for the quarter were 3.2 million tonnes. Revenues were $4.6 billion, and adjusted EBITDA, $686 million. Cash flow from operations was $383 million.

儘管在第二季度遇到了一些挑戰，辛頓團隊仍在繼續取得進展，在上週完全獲得了熔化能力。本季鋼材出貨量為 320 萬噸。營收為 46 億美元，調整後 EBITDA 為 6.86 億美元。營運現金流為 3.83 億美元。

I remain incredibly proud of the Steel Dynamics team. They are family. It's an honor to and a pleasure, to be honest, to be part of a team that looks out for one another and that strives for excellence each and every day. And that's why we're so focused on providing the very best for their health, their safety, and their welfare.

我仍然為 Steel Dynamics 團隊感到無比自豪。他們是一家人。說實話，能夠成為一個互相照顧、每天都追求卓越的團隊的一員，是一種榮幸和快樂。這就是為什麼我們如此專注於為他們的健康、安全和福祉提供最好的服務。

We're actively engaged in safety at all times and at every level, keeping it top of mind in an active conversation each and every day. A significant impact, the team continues to be deeply focused on our controller safety program that is yielding an even better safety culture. But as I always say, there's more to do and we will not rest until we consistently achieve our goal of zero injuries.

我們始終在各個層面積極關注安全議題，並在每天的正向對話中始終將其放在首位。團隊繼續深入關注我們的控制器安全計劃，該計劃產生了更好的安全文化，產生了重大影響。但正如我常說的，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。

So with that said, Theresa, would you like to add some color to the quarter?

話雖如此，Theresa，您想為本季增添一些色彩嗎？

Thank you, Mark. Good morning, everyone. Thanks for joining us and thanks to teams for another solid performance. Our second-quarter 2024 net income was $428 million or $2.72 per diluted share, with adjusted EBITDA of $686 million. Second-quarter 2024 revenue of $4.6 billion was slightly below sequential first-quarter results due to lower realized steel pricing.

謝謝你，馬克。大家，早安。感謝您加入我們，並感謝團隊的又一次出色表現。我們 2024 年第二季的淨利潤為 4.28 億美元，即稀釋後每股收益 2.72 美元，調整後 EBITDA 為 6.86 億美元。由於鋼鐵實現定價較低，2024 年第二季營收為 46 億美元，略低於第一季季比業績。

Our second-quarter operating income of $559 million was 26% lower than first-quarter results driven by steel metal spread contraction as pricing declined more than scrap raw material costs. Our steel operations generated operating income of $442 million, 34% lower sequentially due to average realized pricing declining $63 to $1,138 per tonne, while total shipments were generally steady.

我們第二季的營業收入為 5.59 億美元，比第一季的業績低 26%，這是由於鋼鐵金屬價差收縮所致，因為定價下降幅度超過了廢原材料成本。我們的鋼鐵業務產生營業收入 4.42 億美元，環比下降 34%，原因是平均實現價格每噸下降 63 美元至 1,138 美元，而總發貨量總體穩定。

Uniquely, all of our steel mills, except for Roanoke, had planned maintenance outages in the second quarter, which impacted utilization and related conversion costs for the quarter. Additionally, our Sinton, Texas flat-rolled steel division operated close to 60% of capacity for the quarter compared to almost 70% in the first quarter due to required outages to implement needed changes, which Barry will describe in a moment.

獨特的是，除羅阿諾克外，我們所有的鋼廠都計劃在第二季度進行維護停電，這影響了本季的利用率和相關轉換成本。此外，我們德州 Sinton 的扁鋼部門本季的產能接近 60%，而第一季的產能接近 70%，原因是需要停電來實施必要的變革，巴里稍後將對此進行描述。

Operating income from our metals recycling operations was $32 million, significantly higher than sequential first-quarter results despite lower realized pricing as volumes increased and the team continues to gain operating efficiencies.

我們的金屬回收業務的營業收入為 3,200 萬美元，顯著高於第一季的連續業績，儘管隨著產量的增加和團隊不斷提高營運效率，實現的定價較低。

As many of you already know, we're the largest North American metals recycler processing and consuming ferrous scrap and non-ferrous aluminum, copper, and other metals. The team continues to effectively lever the strength of our circular manufacturing model, benefiting both our steel and metals recycling operations, and shortly also our aluminum flat-rolled operations.

正如你們許多人所知，我們是北美最大的金屬回收商，加工和消耗黑色金屬廢料以及有色鋁、銅和其他金屬。團隊繼續有效地利用我們循環製造模式的優勢，使我們的鋼鐵和金屬回收業務受益，不久之後我們的鋁壓延業務也將受益。

Our steel fabrication team achieved strong operating income of $181 million in the second quarter, slightly higher than first-quarter sequential results. Earnings were supported with an 11% increase in shipments, more than compensating for a 5% reduction in realized pricing. Our joist and deck backlog extends to the fourth quarter of 2024.

我們的鋼鐵製造團隊在第二季實現了 1.81 億美元的強勁營業收入，略高於第一季的連續業績。出貨量成長 11% 支撐了獲利，足以彌補實現價格下降 5% 的影響。我們的托樑和甲板積壓訂單將延續至 2024 年第四季。

Infrastructure Inflation Reduction Act, DOE decarbonization support, and manufacturing onshoring are expected to increase domestic fixed asset investment and in turn related to flat and long product steel consumption and joist and deck consumption later this year and in the coming years.

基礎設施通膨削減法案、美國能源部脫碳支援和製造業外包預計將增加國內固定資產投資，進而與今年稍後和未來幾年的板材和長材鋼材消費以及托樑和甲板消費相關。

A reminder, as we construct the aluminum facilities, non-capitalizable expenses are required to flow through SG&A until startup. So you'll see increased costs in this line item until we start operations mid-2025. This amount was $19 million in the second quarter. Our supplemental schedule provides visibility as a separate aluminum segment. We estimate that average similar costs of approximately $25 million per quarter will occur through the first half of 2025.

提醒一下，當我們建造鋁廠時，在啟動之前需要透過 SG&A 支付不可資本化的費用。因此，在我們於 2025 年中期開始營運之前，您會發現此訂單項目的成本增加。第二季這金額為 1900 萬美元。我們的補充時間表提供了作為單獨鋁部門的可見性。我們估計，到 2025 年上半年，每季平均會產生約 2,500 萬美元的類似成本。

We have expectations to be EBITDA positive in the second half of 2025 for our aluminum investments with plans to initially ramp with industrial-type products as we qualify our can sheet and automotive products. We expect to be operating the rolling mill at approximately 75% of its capability for the full-year 2026 and full thereafter. Mark is going to provide more details related to our ramp and product mix expectations for aluminum investments later on the call, as well as our differentiated cost expectations.

我們預計我們的鋁投資將在 2025 年下半年實現 EBITDA 為正值，並計劃在我們對罐頭板材和汽車產品進行資格認證時首先增加工業型產品。我們預計軋機在 2026 年全年及之後將以其產能的約 75% 運作。馬克將在稍後的電話會議上提供有關我們對鋁投資的產能和產品組合預期以及我們差異化成本預期的更多詳細資訊。

The construction of the aluminum rolling mill and the San Luis Potosí recycled [slab] center is going extremely well. We want to reaffirm the total project cost at $2.7 billion. of which $1.5 billion has already been invested through June of 2024. For the remainder of 2024, we expect to invest another $900 million in the aluminum investments and finally, in 2025, the remaining $250 million.

鋁軋機和聖路易斯波托西回收[板坯]中心的建設進展非常順利。我們想重申項目總成本為 27 億美元。其中 15 億美元已在 2024 年 6 月前完成投資。

Our cash generation continues to be strong based on our differentiated circular business model and highly variable cost structure. During the second quarter of 2024, we generated cash flow from operations of $383 million. Inventories were moderately higher in the quarter as we increased product ahead of our new value-added flat-roll coding lines.

基於我們差異化的循環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。 2024 年第二季度，我們的營運現金流為 3.83 億美元。由於我們在推出新的增值平卷打碼生產線之前增加了產品，因此本季庫存略有增加。

Additionally, estimated tax payments were $273 million in the quarter, representing a 23% cash tax rate for the first half of the year. We ended the quarter with strong liquidity of $2.7 billion, comprised of cash and short-term investments of $1.5 billion, and our fully available unsecured revolver of $1.2 billion.

此外，本季預計納稅額為 2.73 億美元，相當於上半年現金稅率為 23%。本季結束時，我們擁有 27 億美元的強勁流動性，其中包括 15 億美元的現金和短期投資，以及 12 億美元的完全可用的無擔保循環資金。

For 2024, we believe total capital investments will be in the range of $2 billion, of which we've already funded $793 million this year. In February, we increased our quarterly cash dividend 8% to $0.46 cents per common share, continuing our positive dividend profile as through-cycle cash flow grows. We also repurchased $607 million of our common stock in 2024, representing 3% of our outstanding shares.

我們認為 2024 年總資本投資將在 20 億美元左右，其中我們今年已融資 7.93 億美元。 2 月份，我們將季度現金股息提高了 8%，達到每股普通股 0.46 美分，隨著整個週期現金流的增長，我們繼續保持積極的股息狀況。我們也在 2024 年回購了 6.07 億美元的普通股，占我們已發行股票的 3%。

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

我們的資本配置策略優先考慮高回報策略成長，股東分配包括基本的正股利狀況，並輔以可變份額的購買計劃，同時我們仍然致力於維持我們的投資等級信用稱號。

Our free cash flow profile was fundamentally changed over the last five years, from an annual average of $540 million to currently $2.9 billion, excluding our large strategic Sinton and aluminum investments. In July, we successfully issued $600 million of 5.375% investment-grade notes with a 10-year tender. The proceeds will be used for general purposes and anticipation of repaying our $400 million notes due December 2024. We're very pleased with the transaction. We thank those who invested.

過去五年，我們的自由現金流狀況發生了根本性變化，從年均 5.4 億美元增加到目前的 29 億美元（不包括我們在 Sinton 和鋁業的大型策略投資）。 7 月，我們成功發行了 6 億美元、利率為 5.375% 的 10 年期投資等級票據。所得將用於一般用途，並預計償還 2024 年 12 月到期的 4 億美元票據。我們感謝那些投資的人。

Lastly, sustainability is a significant part of our long-term value-creation strategy. In that regard, we remain excited about our joint venture with Aymium, a leading producer of renewable biocarbon products. We believe our first joint venture facility, which we plan to start commissioning late in the fourth quarter, could decrease our steel Scope 1 greenhouse gas emissions by as much as 35%.

最後，永續發展是我們長期價值創造策略的重要組成部分。在這方面，我們對與可再生生物碳產品領先生產商 Aymium 的合資企業仍然感到興奮。我們相信，我們計劃在第四季末開始調試的第一個合資工廠可以將我們的鋼鐵範圍 1 溫室氣體排放量減少多達 35%。

We uniquely have an actionable path toward carbon neutrality that is more manageable and we believe considerably less expensive that may lay ahead for many of our industry peers. Our sustainability and carbon reduction strategy is an ongoing journey, and we're moving forward with the intention to make a positive difference.

我們擁有獨特的實現碳中和的可行途徑，該途徑更易於管理，而且我們相信，對於我們的許多行業同行而言，這可能會大大降低成本。我們的永續發展和減碳策略是一個持續的旅程，我們不斷前進，旨在做出積極的改變。

Finally, for those of you on the call that track categories of our flat-rolled steel shipments, in the second quarter, we shipped hot rolled and P&O of 1,004,000 tonnes, cold-rolled products of 124,000 tonnes, and coated products of 1,245,000 tonnes. Barry?

最後，對於那些在電話中追蹤我們扁鋼出貨量類別的人來說，第二季度，我們運送了熱軋和P&O 1,004,000噸，冷軋產品124,000噸，塗層產品1,245,000噸。巴里？

Thank you, Theresa. Our steel fabrication operations performed well in the second quarter, achieving strong earnings and steady volume aligned with first-quarter results. The market segments that we participate in influence the mix of joist and deck that we engineer for each job. Our team's ability to engineer and manufacture the best solution for each segment remains a core strength.

謝謝你，特蕾莎。我們的鋼鐵製造業務在第二季度表現良好，實現了強勁的盈利和穩定的產量，與第一季的業績保持一致。我們參與的細分市場會影響我們為每項工作設計的托樑和甲板的組合。我們的團隊為每個細分市場設計和製造最佳解決方案的能力仍然是我們的核心優勢。

Our steel fabrication order backlog remains at a healthy level, not extending to the end of the year. We continue to have high expectations for the business, continue to onshoring and manufacturing, continue with infrastructure spending, and fixed asset investment related to the IRA programs should provide momentum for additional construction spending later this year and through 2025.

我們的鋼鐵製造訂單積壓保持在健康水平，不會延續到年底。我們繼續對業務抱有很高的期望，繼續進行外包和製造，繼續進行基礎設施支出，以及與 IRA 計劃相關的固定資產投資應該為今年晚些時候和 2025 年的額外建設支出提供動力。

Our steel fabrication platform provides meaningful volume support for our steel operations, critical and softer demand environments, allowing for higher through-cycle utilization compared to our peers. It also helps mitigate the financial risk of lower steel prices.

我們的鋼鐵製造平台為我們的鋼鐵業務、關鍵和較疲軟的需求環境提供了有意義的批量支持，與同行相比，可以實現更高的全週期利用率。它還有助於減輕鋼材價格下跌帶來的財務風險。

Our metals recycling operations improved earnings in the second quarter as increased demand from North American steel producers supported higher ferrous scrap volume, more than compensating for the challenging price environment. We believe ferrous scrap prices have stabilized and should remain relatively stable to the rest of the year, subject to seasonal moves.

我們的金屬回收業務第二季的獲利有所改善，因為北美鋼鐵生產商的需求增加支撐了黑色金屬廢料量的增加，這足以彌補充滿挑戰的價格環境。我們認為，黑色金屬廢鋼價格已穩定，並應在今年剩餘時間內保持相對穩定，但會受到季節性波動的影響。

The North American geographic footprint of our metals recycling platform provides a strategic competitive advantage for our steel mills and for our scrap-generating customers. In particular, our Mexican recycling locations competitively advantage our Columbus and Sinton raw material positions. They also strategically support increased procurement of aluminum scrap for our future flat-rolled aluminum operations.

我們的金屬回收平台在北美的地理足跡為我們的鋼廠和廢鋼生產客戶提供了戰略競爭優勢。特別是，我們的墨西哥回收地點對我們哥倫布和辛頓的原料地位具有競爭優勢。他們也策略性地支持我們未來的壓延鋁業務增加鋁廢料的採購。

Our metals recycling team is partnering even more closely with both our steel and aluminum teams to expand scrap separation capabilities through both process and technology solutions. This will help mitigate potential prime ferrous scrap supply issues in the future. It will also provide us with a significant advantage to materially increase the recycle content in our aluminum flat-rolled products and increase our earnings potentials.

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，透過製程和技術解決方案擴大廢料分離能力。這將有助於緩解未來潛在的優質黑色金屬廢料供應問題。它還將為我們提供顯著的優勢，大幅增加鋁壓延產品的回收含量，並增加我們的獲利潛力。

Steel team has a solid quarter, achieving shipments of 3.2 million tonnes. In the second quarter, 2024, the domestic steel industry operated at an estimated production utilization rate of 78% while our steel mills operated at a rate of 81%. We consistently operate at higher utilization rates due to our value-added steel product diversification, our differentiated customer supply chain solutions, and the support of our internal manufacturing businesses.

鋼鐵團隊季度表現穩健，出貨量達 320 萬噸。 2024年第二季度，國內鋼鐵業的生產利用率預計為78%，而我國鋼廠的開工率為81%。由於我們的增值鋼鐵產品多元化、差異化的客戶供應鏈解決方案以及內部製造業務的支持，我們始終以較高的利用率運作。

The higher through-cycle utilization of our steel mills is a key competitive advantage, supporting our strong and growing cash-generation capability and best-in-class financial metrics. Our realized steel pricing declined across product portfolios as prices weakened throughout the second quarter.

我們鋼廠較高的全週期利用率是一項關鍵的競爭優勢，支持我們強大且不斷增長的現金產生能力和一流的財務指標。隨著第二季價格走軟，我們所有的產品組合的鋼鐵實際定價均有所下降。

However, value-added flat-rolled steel pricing spreads remained very resilient during this same timeframe, supporting our earnings as we already are the largest producer of these products in North America. And we are growing with the new addition of four coating lines with 1.1 million tonnes of additional capacity.

然而，在同一時間段內，增值扁鋼價差仍然非常有彈性，支撐了我們的收益，因為我們已經是北美這些產品的最大生產商。隨著新增加的 4 條塗層生產線的增加，我們的產能不斷擴大，產能達 110 萬噸。

Underlying demand remains steady, but customers remain hesitant to place orders due to the continuing decline of scrap prices throughout the quarter. Additionally, a surge in steel imports put pressure on the supply dynamics. However, order activity has increased over the last month, especially within the last several weeks, stabilizing our lead times.

基礎需求保持穩定，但由於整個季度廢鋼價格持續下跌，客戶對下訂單仍猶豫不決。此外，鋼材進口激增對供應動態帶來壓力。然而，訂單活動在過去一個月有所增加，特別是在過去幾週內，穩定了我們的交貨時間。

We believe this is the bottom range of pricing with positive moves in the future. The Sinton steel team continues to make improvements in operating efficiency and consistency. We are planning for Sinton to see additional improvements in production and profitability as the team took two different four-day outages during the second quarter to, among other things, resolve the transformer limitations we have previously discussed.

我們認為這是定價的底部範圍，未來將出現積極趨勢。新東鋼鐵團隊不斷提高營運效率和一致性。我們計劃讓 Sinton 在生產和盈利能力方面取得進一步的進步，因為該團隊在第二季度進行了兩次不同的為期四天的停電，以解決我們之前討論過的變壓器限制問題。

The outages were necessary to install the necessary additional safety circuits and restore our electrical capacity, which will now allow us to access 100% of our melting capacity versus the previous 80%. Also, the additional two new value line -- coding lines that's in were successfully commissioned and commenced operations with great success, improving the mill's value-added product mix and improving the operating efficiency of the facility. The additional lines will support increased volume and margins as we head through this year.

這次停電是為了安裝必要的額外安全電路並恢復我們的電力容量，這將使我們能夠獲得 100% 的熔煉能力，而之前為 80%。此外，另外兩條新的價值生產線——編碼生產線已成功調試並開始運營，取得了巨大成功，改善了工廠的增值產品組合併提高了工廠的運營效率。隨著我們今年的發展，額外的生產線將支持銷售和利潤的增加。

Regarding the steel market environment, North America automotive production estimates for 2024 recently revised with strong 16 million units with continued growth expected in 2025 and 2026. This forecast is based on demand resilience and stronger production results as supply chain constraints continue to dissipate. Automotive dealer inventories also continue to remain below historical norms despite the recent cyber disruptions.

關於鋼鐵市場環境，北美汽車產量預測最近修正為2024 年的1600 萬輛，預計2025 年和2026 年將繼續增長。生產結果。儘管最近出現網路中斷，但汽車經銷商的庫存仍繼續低於歷史正常水準。

Non-residential construction remains stable with slowdowns across some building types due to hesitancy around higher interest rates. Additionally, onshoring and infrastructure spending should provide further meaningful support to fixed-asset investment and related construction-oriented projects in the coming years.

非住宅建築保持穩定，但由於對加息猶豫不決，一些建築類型放緩。此外，在岸和基礎設施支出應在未來幾年為固定資產投資和相關建設項目提供進一步有意義的支援。

As for the energy market, the solar industry continues to grow. It did oil and gas activity steady. However, increasing OTCG and line pipe imports create a challenging second-quarter environment for the domestic producers. Looking forward, we are optimistic regarding steel demand and pricing dynamics for 2024.

在能源市場方面，太陽能產業持續成長。石油和天然氣活動保持穩定。然而，OTCG 和管線管進口的增加給國內生產商帶來了充滿挑戰的第二季環境。展望未來，我們對 2024 年鋼鐵需求和價格動態持樂觀態度。

And with that, I'll turn it over to Mark.

有了這個，我會把它交給馬克。

Well, thank you, Theresa. Thank you, Barry. I appreciate that. But looking toward our continued growth, our consistently strong through-cycle operating and financial performance continues to support our cash generation and growth investment strategies. The four value-added flat-rolled steel coating lines are increasing volume and have performed extremely well. These types of high-return investments are key to our value-added product and supply chain differentiation strategies.

嗯，謝謝你，特蕾莎。謝謝你，巴里。我很感激。但展望我們的持續成長，我們持續強勁的整個週期營運和財務表現將繼續支持我們的現金產生和成長投資策略。 4條增值扁鋼塗裝線產量不斷增加，且表現極為優異。這些類型的高回報投資是我們增值產品和供應鏈差異化策略的關鍵。

Regarding Sinton's progress, Barry will provide some more information, but the team completed a key task this week. And as we look forward to the rest of the year, we have confidence in increased volume and profitability from them.

關於辛頓的進展，巴里將提供一些更多信息，但球隊本週完成了一項關鍵任務。當我們展望今年剩餘時間時，我們對它們的銷售和盈利能力的增加充滿信心。

Our aluminum growth strategy, I believe, is especially compelling. We're achieving fast-paced progress on the construction of our aluminum flat-rolled investments. There continues to be strong commercial support for a new and innovative supply chain solution from Steel Dynamics for the aluminum industry has come to consider a well-known and highly regarded metals producer today. Responses from existing and new customers across the markets still remain incredible.

我相信，我們的鋁成長策略尤其引人注目。我們的鋁壓延投資建設正在快速取得進展。 Steel Dynamics 為鋁業提供的新型創新供應鏈解決方案持續獲得強大的商業支持，現已成為當今知名且備受推崇的金屬生產商。整個市場現有和新客戶的反應仍然令人難以置信。

As a quick overview of the project, it's a 650,000-metric-tonne aluminum flat roll facility in Columbus, Mississippi. So it's a state-of-the-art plant and with an optimized target mix of 300,000 tonnes of can stock [and] thousand tons of industrial and construction products.

簡要概述該項目，這是位於密西西比州哥倫布市的一座 65 萬噸鋁扁卷工廠。因此，它是一家最先進的工廠，優化目標組合為 30 萬噸罐頭庫存[以及]數千噸工業和建築產品。

On-site melting and casting slab capacity is 600,000 metric tonnes and is supported by two satellite recycled aluminum slab casting centers located in UBC scrap-rich regions. We expanded the project scope to include additional scrap processing and segregation technologies to maximize our aluminum recycled content. Startup plans right now for the rolling mill to start up in mid '25, the Mexico slab center in the first quarter of '25, with the US slab center coming in online in the second half of '25.

現場熔煉和鑄造板坯產能為 60 萬噸，由位於 UBC 廢料豐富地區的兩個衛星再生鋁板坯鑄造中心提供支援。我們擴大了專案範圍，納入了額外的廢料處理和分離技術，以最大限度地提高我們的鋁回收含量。 Startup 目前計畫軋機於 25 年中期啟動，墨西哥板坯中心於 25 年第一季啟動，美國板坯中心於 25 年下半年啟動。

From an investment premise perspective, I think the market environment today in aluminum is similar to the domestic steel industry when we started SDI 30 years ago. It has older assets. It has heavy legacy costs. The mills are somewhat inefficient and high-cost operations. It's an industry that has difficulty or has had difficulty in earning cost of capital and hence has little investment in facilities and new technologies over time.

從投資前提的角度來看，我認為現在鋁業的市場環境與30年前我們創辦SDI時的國內鋼鐵業類似。它擁有較舊的資產。它具有沉重的遺留成本。這些工廠的營運效率有些低且成本較高。這是一個很難或已經難以賺取資本成本的行業，因此隨著時間的推移，對設施和新技術的投資很少。

Different though than the steel environment 30 years ago is that there's an absolute supply deficit which exists in the market in North America, and that deficit is likely to grow. It's aligned with our business. We can leverage our core competencies of our construction and operation know-how, and we can drive performance through our culture, which in turn will drive high efficiency and low-cost operation.

但與30年前的鋼鐵環境不同的是，北美市場存在絕對的供應短缺，而且這種供應短缺可能會進一步擴大。這與我們的業務是一致的。我們可以利用我們的建設和營運專業知識的核心能力，我們可以透過我們的文化來推動績效，從而推動高效率和低成本的營運。

It also levers our Omni recycling footprint. Today, Omni is the largest North American aluminum scrap recycler and has developed some very unique and innovative separation technologies that can segregate the different aluminum supply streams coming to them. It's a very, very cost effective and a high-return growth opportunity for us.

它還利用了我們的 Omni 回收足跡。如今，Omni 是北美最大的鋁廢料回收商，並開發了一些非常獨特和創新的分離技術，可以分離進入他們的不同鋁供應流。這對我們來說是一個非常非常具有成本效益和高回報的成長機會。

The team plans to begin production of slabs in San Luis Potosí, Mexico, as I said, in the first quarter of 2025, followed by the commissioning of the rolling mill mid '25, and those are both on schedule for those days. In '25, we plan to begin production with a mix heavier weighted to industrial and construction product sectors as we qualify our can sheet and automotive products. We believe volumes for the second half of 2025 will be at 50% capacity, growing to 75% in 2026.

正如我所說，該團隊計劃於 2025 年第一季在墨西哥聖路易斯波托薩開始生產板坯，隨後軋機將於 25 年中期投入運行，這些都按計劃進行。 25 年，我們計劃開始生產以工業和建築產品部門為主的混合產品，因為我們對罐頭板材和汽車產品進行了鑑定。我們認為 2025 年下半年的產能利用率將達到 50%，到 2026 年將增至 75%。

Through the first 24 months, we will continue to transition the product mix to more can sheet and automotive, targeting the 45% can sheet, 30% to 35% automotive in probably 2027. We have some key can and auto customers that are keen in helping us achieve the highest quality in as short a time as possible, and I know our team is up to it.

在前24 個月裡，我們將繼續將產品組合轉向更多的罐頭板材和汽車產品，目標是到2027 年，罐頭板材佔45%，汽車行業佔30% 至35%。罐頭板材和汽車產品的主要客戶幫助我們在盡可能短的時間內實現最高的質量，我知道我們的團隊有能力做到這一點。

The total project cost, including the recycled slab centers, is $2.7 billion, and we are confident in the budget. Virtually, all equipment and construction contracts are complete. And we also expect to add about $650 million to $700 million of through cycle annual EBITDA, plus an additional $40 million to $50 million for the Omni recycling platform.

包括回收板中心在內的專案總成本為 27 億美元，我們對預算充滿信心。事實上，所有設備和施工合約均已完成。我們也預計整個週期的年度 EBITDA 將增加約 6.5 億至 7 億美元，另外 Omni 回收平台將增加 4,000 萬至 5,000 萬美元。

We are confident in our operating cost assumptions. And some of you have asked us to try and quantify these areas of savings as we've outlined them in the past and help you differentiate our project to the rest of the industry.

我們對營運成本假設充滿信心。你們中的一些人要求我們嘗試量化這些節省領域，正如我們過去概述的那樣，並幫助你們將我們的專案與行業其他專案區分開來。

The most significant savings are in four key areas: labor, recycled content, yield, and logistics. The labor, which makes up in our mind about 35% of the differential, we will have a reduced workforce. We would anticipate somewhere around 750 people versus over 1,200 or more for a competitive plant today. That comes from an optimized plant layout and material flow.

最顯著的節省體現在四個關鍵領域：勞動力、回收材料、產量和物流。在我們看來，勞動力約佔差異的 35%，我們將減少勞動力。我們預計大約有 750 名員工，而如今競爭性工廠的員工數量超過 1,200 人或更多。這來自優化的工廠佈局和物料流。

We also have a central automated storage system, so when -- there will be no sort of human touch to the product from slab to truck, eliminating a massive amount of material handling and a huge number of folks. We drive productivity through our culture and our performance-based incentives.

我們還有一個中央自動化儲存系統，因此，從板坯到卡車的過程中，產品將不再需要任何人為接觸，從而消除了大量的物料搬運和大量人員。我們透過我們的文化和基於績效的激勵措施來提高生產力。

We obviously will not have the high legacy costs that some, again, existing competitors have today. I would suggest that there should be no doubt that we can achieve these sorts of things, the productivity levels, et cetera, as we have done in steel over the years.

顯然，我們不會像某些現有競爭對手那樣承受高昂的遺留成本。我認為，毫無疑問，我們可以實現這些目標，提高生產力水平等等，就像我們多年來在鋼鐵領域所做的那樣。

The second differential would be recycled content, and that's probably 25% of the differential. We, I believe, can do that through levering the OmniSource platform. Again, they're the largest non-ferrous recycler in North America today. We already have a secondary aluminum operation that we can also lean on. The satellite facilities will also help being close to UBC-rich areas.

第二個差異是回收成分，這可能佔差異的 25%。我相信，我們可以透過利用 OmniSource 平台來做到這一點。他們再次成為當今北美最大的有色金屬回收商。我們已經擁有了值得信賴的再生鋁業務。衛星設施也將有助於靠近 UBC 資源豐富的地區。

Again, I think the innovative segregation technologies that we've developed actually in-house will also allow us to increase the research or content compared to our competitors. The third area would be yield. And I think we'll be in a little conservative here, but that would be about 20% of the differential.

同樣，我認為我們內部實際開發的創新分離技術也將使我們能夠比競爭對手增加研究或內容。第三個領域是產量。我認為我們會有點保守，但這大約是 20% 的差異。

Firstly, obviously we're going to have just a brand-new state-of-the-art facility, which will help for sure. The sculpting technology is an innovative state of the art. It doesn't just rely on just shaving off a half an inch or three quarters of an inch or whatever off a slab. It measures the profile of the slab, measures the quality of the slab, and we will only take off what is absolutely needed.

首先，顯然我們將擁有一個全新的、最先進的設施，這肯定會有所幫助。雕刻技術是一項創新的藝術水準。它不僅僅依賴從一塊板上削掉半英寸或四分之三英寸或其他任何東西。它測量板的輪廓，測量板的質量，我們只會去除絕對需要的部分。

We will also be utilizing, through the mill, sort of supersized coils. The less -- front end, tails, et cetera, you utilize there. So I think we were comfortable with a substantial improvement in yield. And then logistics are probably 10% of that. And again, locating the satellite slab centers next to or within UBC-rich areas, allowing us to melt and cast that material and ship big, heavy, solid slab versus less-dense UBC bales and then taking the yield loss there, there's a considerable freight advantage to that.

我們也將透過工廠利用某種超大線圈。您在那裡使用的前端、尾部等較少。所以我認為我們對產量的大幅提高感到滿意。然後物流可能佔其中的 10%。再說一次，將衛星板中心定位在UBC 資源豐富的區域附近或內部，使我們能夠熔化和鑄造該材料，並運輸大而重的實心板，而不是密度較低的UBC 包，然後在那裡考慮產量損失，會有相當大的收益。

But we're excited, and I think that excitement is palpable within our company as our younger generations want to emulate our steel history and revolutionize the North American aluminum market. More generally, we're impassioned by our current and future growth plans as they will continue to drive the high-return growth momentum we've consistently demonstrated over the years.

但我們很興奮，我認為我們公司內部的興奮是顯而易見的，因為我們的年輕一代希望效仿我們的鋼鐵歷史並徹底改變北美鋁市場。更廣泛地說，我們對當前和未來的成長計劃充滿熱情，因為它們將繼續推動我們多年來一貫表現出的高回報成長勢頭。

A disciplined, intentional, organic, and acquisition strategy focused on differentiated value-added supply chain solutions is providing sustainable cash generation. Near term, the continued stint and ramp up for new coating lines, closely followed by our aluminum strategy, will significantly increase that through-cycle cash flow generation. I'm excited looking forward. I believe that market dynamics are in place to support long-term demand growth across all our operating platforms.

專注於差異化增值供應鏈解決方案的嚴格、有目的、有機的收購策略正在提供可持續的現金產生。短期內，新塗層生產線的持續投入和增加，以及我們的鋁策略的密切關注，將顯著增加整個週期現金流的產生。我很興奮期待。我相信市場動態已經到位，可以支持我們所有營運平台的長期需求成長。

As Theresa mentioned, North America will benefit from continued onshoring of manufacturing businesses, and the US will benefit from the allocation of public monies from the infrastructure program, Inflation Act, and other public programs. Steel Dynamics is levered to benefit from those programs through increased steel joist and deck demand, flat and long product steel demand, and the associated higher demand for recycled scrap in aluminum.

正如特蕾莎所提到的，北美將受益於製造業企業的持續外包，而美國將受益於基礎設施計劃、通貨膨脹法案和其他公共計劃的公共資金分配。 Steel Dynamics 透過增加鋼托樑和甲板需求、扁平材和長材鋼材需求以及相關的鋁回收廢料需求增加，從這些計劃中受益。

Furthermore, and I don't believe it should be understated, we are blessed with a best-in-class carbon footprint. Our integrated peers, both domestic and global, will be spending substantial CapEx to bring their carbon footprint down.

此外，我認為不應低估，我們有幸擁有一流的碳足跡。我們的國內和全球綜合同業將花費大量資本支出來降低碳足跡。

Those that are including hydrogen-based DRI will also incur additional operating expense of some $200 per tonne. This will materially steepen the global cost curve and will support higher product pricing in the future. And we, SDI, being at the bottom of the cost curve, will effectively expand our long-term metal spread through the cycle.

那些包含氫基 DRI 的企業還將產生每噸約 200 美元的額外營運費用。這將大大加劇全球成本曲線，並將支援未來更高的產品定價。而我們，SDI，處於成本曲線的底部，將有效地擴大我們在整個週期中的長期金屬價差。

In closing, our teams, as I've always said, are our foundation. I thank each of them for their passion and their dedication. We are committed to them. And I remind those listening today that safety for yourselves, your families, and each other is the highest priority.

最後，正如我一直所說，我們的團隊是我們的基礎。我感謝他們每個人的熱情和奉獻。我們致力於他們。我提醒今天聽眾，你們自己、家人和彼此的安全是最重要的。

Our culture and our business model continue to positively differentiate our performance, leading to best-in-class financial metrics. And we are no longer a pure steel company, but an integrated metals business providing enhanced supply chain solutions to the industry, in turn mitigating volatility and cash flow generation through all market cycles.

我們的文化和業務模式繼續使我們的業績脫穎而出，從而實現一流的財務指標。我們不再是一家純粹的鋼鐵公司，而是一家綜合金屬企業，為產業提供增強的供應鏈解決方案，從而減輕整個市場週期的波動性和現金流的產生。

We are competitively positioned and continue to focus on providing superior value for our company, our 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。我們期待為今天和未來的所有人創造新的機會。

That being said, Matt, we'd love to listen to or hear all the questions.

話雖這麼說，馬特，我們很樂意傾聽或聽到所有問題。

(Operator Instructions) Carlos De Alba, Morgan Stanley.

（操作員指示）Carlos De Alba，摩根士丹利。

Yes. Good morning, Mark and Theresa. Just wanted to ask you, Mark, can you remind us what is the recycle content that you expect to have in the aluminum project and how that may evolve over time?

是的。早安，馬克和特蕾莎。只是想問你，馬克，你能提醒我們你預計鋁項目中的回收內容是什麼，以及隨著時間的推移會如何演變嗎？

Well, Carlos, it depends, to be honest, on the product from -- and over time, it will improve obviously. Our target for the UBC is around about 95%, 90% to 95% -- sorry, can sheet, yes, UBC rolled material. The can sheet would be 90% to 95%, certainly 95%.

好吧，卡洛斯，說實話，這取決於產品——隨著時間的推移，它會明顯改善。我們對 UBC 的目標是 95% 左右，90% 到 95%——抱歉，可以是片材，是的，UBC 捲材。罐頭片材將是 90% 到 95%，當然是 95%。

And I think that, to some degree, is reliant, is achievable because of the segregation technologies that we've developed to get -- differentiate the 5,000 series from other products. The automotive would be lower than that, and I think our aim would be around about 70%.

我認為，在某種程度上，這是可靠的，是可以實現的，因為我們開發了隔離技術，使 5,000 系列與其他產品區分開來。汽車產業的比例會低於這個數字，我認為我們的目標是 70% 左右。

So overall, it's probably going to be something closer to 80%, 85%?

所以整體來說，可能會接近 80%、85%？

I've not done the math, but in my head, intuitively, that sounds right.

我沒有做過數學計算，但在我的腦海中，直覺上，這聽起來是對的。

Right. Thank you very much.

正確的。非常感謝。

Martin Englert, Seaport Research Partners.

馬丁恩格勒特，海港研究合作夥伴。

Hello. Good morning, everyone.

你好。大家，早安。

Good morning.

早安.

For low-copper shredded scrap, can you provide an update on the processing capacity within the internal network and any ongoing growth initiatives there and where you think that capability might be entering next year?

對於低銅碎廢鋼，您能否提供有關內部網路內處理能力的最新資訊以及任何正在進行的增長計劃以及您認為明年該能力可能進入的領域？

I think the question was the low copper, correct? Yes, we will continue to expand that to all our shredding operations. As far as the absolute volume -- Barry?

我認為問題是銅含量低，對嗎？是的，我們將繼續將其擴展到我們所有的粉碎業務。至於絕對數量——巴里？

I would just say, we -- in addition to the technologies to segregate the scrap, the first scrap gets the copper residuals out. It requires quite a bit of know-how in the melt shop to fully utilize that. So we've been expanding that growth down to our Mississippi mill and also into Sinton. So right now, we have a very healthy mix at our Columbus flat roll -- or Butler flat roll mill, where we have the requirements we need.

我只想說，我們——除了分離廢料的技術之外，第一批廢料還可以去除銅殘留物。要充分利用這一點，熔化車間需要相當多的專業知識。因此，我們一直在將這種增長擴展到我們的密西西比工廠和辛頓。所以現在，我們在哥倫布平輥或巴特勒平輥軋機上有一個非常健康的組合，我們有我們需要的要求。

So the investments that Omni is making takes that product even further down into the south, where we can get better utilization at the other flat roll mills. So we're very excited about the opportunity. And also, how to deploy it once it gets to the mills? That's -- probably half the problem is how to get it usefully into your mix in the mills. And we're making great progress on that as well.

因此，Omni 正在進行的投資將該產品帶到了更遠的南部，在那裡我們可以在其他平輥軋機上獲得更好的利用率。所以我們對這個機會感到非常興奮。另外，到達工廠後該如何部署？這可能是一半問題是如何將其有效地融入工廠的混合物中。我們在這方面也取得了巨大進展。

Are you putting the technology in -- at the shredding facilities or are you co-locating it at the mills?

您是將技術投入到粉碎設施中還是將其部署在工廠中？

To this point, it's at the shredding facilities, and it is a series of equipment to pull the value streams out along the way. So not only does it reduce the copper in the actual scrap shred we're sending to the mills, but it also allows us to obtain better recoveries in the other elements coming out of the scrap stream, the Zorba, the Twitch, so forth. So at the facility is the best place to put those. And right now, that's where our focus is, and our efforts have been focused.

到目前為止，它位於粉碎設施中，它是一系列設備，可以沿途拉出價值流。因此，它不僅減少了我們發送到工廠的實際廢料碎片中的銅含量，而且還使我們能夠更好地回收廢料流中的其他元素（Zorba、Twitch 等）。因此，設施內是放置這些的最佳位置。現在，這就是我們的重點所在，也是我們努力的重點。

Okay, and no current estimates as to how much your capability is for processing that today?

好的，目前沒有估計您今天的處理能力有多少？

I can't give you the actual number, but we're confident that we will be able to create a volume that matches our productivity loss at the sheet mills.

我無法向您提供實際數字，但我們有信心創造出與板材廠生產力損失相符的產量。

Okay. I appreciate the color there. Thank you.

好的。我很欣賞那裡的顏色。謝謝。

Tristan Gresser, BNP Paribas Exane.

特里斯坦·格雷瑟，法國巴黎銀行 Exane。

Yes, hi. Thank you for taking my questions. The first one is on Sinton. I think back in April, you mentioned that you had that maintenance, and that the transformer issue was about to be solved. But now it seems this issue lasted for longer as you only mentioned that you only got full capability back last week. So if you can explain a little bit of what happened and why it took longer essentially.

是的，嗨。感謝您回答我的問題。第一個是在辛頓。我記得四月的時候，您提到您進行了維護，並且變壓器問題即將得到解決。但現在看來這個問題持續了更長的時間，因為你只是提到你上週才恢復了全部能力。因此，如果您能解釋一下發生的事情以及為什麼花了更長的時間。

And also, was Sinton EBITDA positive in Q2? And do you expect a significant step up in profitability into Q3? Or is that going to be a much more gradual process given the market conditions?

另外，Sinton 第二季的 EBITDA 是否為正值？您預計第三季的獲利能力會大幅提升嗎？或者考慮到市場狀況，這將是一個更漸進的過程？

On the outage front down in Sinton, the work we had to do took place in the high-voltage switch yard. So we bring in transmission voltage in Texas. We're the only facility in the State of Texas that actually brings in 345,000 volts. So in the early April outages, we put the concrete down. It's necessary to support the equipment and made bus modifications.

在辛頓停電前線，我們必須在高壓開關場進行工作。因此，我們引入了德克薩斯州的輸電電壓。我們是德州唯一實際提供 345,000 伏特電壓的設施。因此，在四月初的停電期間，我們放下了混凝土。有必要對設備進行支援並進行總線修改。

And as the equipment arrived, there's this protocol of both testing the equipment, pressurizing it, safely bringing it to a position where you're ready to turn it on. And during that process, it required us to have the high voltage also shut off. So as we actually got the equipment fully on site, fully installed, and now turned on the equipment that there's a series of outage that comes along with that.

當設備到達時，有一個測試設備、加壓、安全地將其帶到您準備打開它的位置的協議。在此過程中，我們需要關閉高壓。因此，當我們實際上將設備完全運送到現場、完全安裝並打開設備時，隨之而來的是一系列停電。

And we kind of identified the root, the key steps in the process. So we did have a slight delay with the hurricane situation in South Texas. And just out of prudence, we decided to make sure we weren't in the process of messing with our high-voltage system when we had hurricane winds. So we're in a much better place now. We're very comfortable that we've addressed the root cause.

我們找到了根源，即過程中的關鍵步驟。因此，我們確實因德克薩斯州南部的颶風情況而略有延遲。出於謹慎，我們決定確保在颶風發生時不會擾亂我們的高壓系統。所以我們現在處於一個更好的位置。我們很高興我們已經解決了根本原因。

We put in some new safety gear that works in the electrical world, and that's as deep as I can go into it myself. I'm a mechanical guy. But we're confident that when we're positioned now to really fully utilize the power in the furnace and the teams are, practice wise, up to speed. So we do see this as a big key step in getting even more productivity out of the plant.

我們安裝了一些適用於電氣領域的新安全裝置，這是我自己所能深入研究的。我是機械人。但我們相信，當我們現在真正充分利用熔爐中的能量時，團隊就會透過明智的練習，跟上速度。因此，我們確實認為這是提高工廠生產力的關鍵一步。

If I could add and perhaps expand a little further, we took a little bit of a low blow in our analysis report last night about our performance there at Sinton. But I think there needs to be recognition that we're developing the next-generation technology down there. It is an absolutely phenomenal technology and it's what the world is going to be using going forward.

如果我可以補充一點，或許可以進一步擴展一下，我們昨晚在分析報告中對我們在辛頓的表現感到了一點打擊。但我認為需要認識到我們正在那裡開發下一代技術。這絕對是一項非凡的技術，也是世界未來將要使用的技術。

And the important things, such as the product qualities that we wanted to achieve, the improved surface quality, the tougher, higher strength qualities produced through film and mechanical rolling, but the productivity, the design capability from a productivity standpoint is totally proven. We can produce over 5,000 tonnes a shift down there. So the technology is absolutely there. All we have to do is simply increase the utilization about that facility.

重要的是，例如我們想要實現的產品質量，改善的表面質量，透過薄膜和機械軋製生產的更堅韌、更高的強度質量，但生產率、從生產率角度來看的設計能力是完全得到證明的。我們在那裡每班可生產 5,000 多噸。所以技術是絕對存在的。我們所要做的只是提高該設施的利用率。

Okay, that's very clear. So I guess Sinton was not EBITDA positive in Q2. And that means there could be a significant step up in profitability into Q3?

好的，這很清楚。所以我猜 Sinton 在第二季的 EBITDA 並不為正。這意味著第三季的獲利能力可能會大幅提升？

Tristan, you're correct. So for the second quarter, we were basically breakeven from an EBITDA perspective. And so there's very high expectations for the second half of the year as it relates to Sinton.

特里斯坦，你是對的。因此，從 EBITDA 角度來看，第二季我們基本上實現了損益平衡。因此，人們對辛頓下半年的期望非常高。

Okay, that's very clear. And maybe a quick follow up on that, on the supply outlook as you bring more volume from Sinton. I mean, if we look at US HRC prices, they're down 40% from peak and margin on the spot basis. They haven't been that low for a long period of time.

好的，這很清楚。隨著辛頓的產量增加，也許會快速跟進供應前景。我的意思是，如果我們看看美國熱軋捲價格，現貨價格比高峰和利潤率下降了 40%。他們已經很長一段時間沒有這麼低了。

So I guess, why do you think that the market can absorb higher volume from Sinton? And have you contemplated instead reducing production or capacity at this time? And lastly, in that type of environment, where some of your peers are probably in much more difficult conditions, have you been able to gain market share?

所以我想，為什麼你認為市場可以吸收 Sinton 的更高成交量？您是否考慮過此時減少產量或產能？最後，在這種環境下，你的一些同行可能處境更加困難，你是否能夠獲得市場份額？

We're very confident that the products that we offer out of Sinton -- as Mark spoke, we had to get new technology to be able to respond to the customer base in that region. We're selling quite a bit of tonnes into Mexico and a lot of these tonnes are heavier higher-strength steels where we find more value, and they're also products that the market needs in that region.

我們對辛頓提供的產品非常有信心——正如馬克所說，我們必須獲得新技術才能響應該地區的客戶群。我們向墨西哥銷售了相當多噸的鋼材，其中許多是較重的高強度鋼材，我們在墨西哥發現了更多的價值，而且它們也是該地區市場需要的產品。

So we've been welcomed across the different market segments with the abilities that we brought to the table there. So we do see the market being receptive to having a regional supplier. As you know, the import action in that area is particularly different. It's heightened versus the rest of the country. So to have a local supply chain of high-value products is welcomed right now for the customer base.

因此，我們憑藉自己的能力受到了不同細分市場的歡迎。因此，我們確實看到市場願意擁有區域供應商。如您所知，該領域的進口行動特別不同。與全國其他地區相比，這一比例有所提高。因此，擁有高價值產品的本地供應鏈現在受到客戶群的歡迎。

And when I say regional, that's Mexico. We're a few short hours' truck ride into Monterey. So we continue to see good response, good results down there. And we're being very judicious with our time. We know we will develop new products in the future, but right now, we have a very good offering.

當我說區域性時，那就是墨西哥。我們乘坐卡車只需幾個小時即可到達蒙特雷。因此，我們繼續看到良好的反應和良好的結果。我們對時間非常明智。我們知道我們將來會開發新產品，但現在我們擁有非常好的產品。

And with the new value lines, both painted and the galvanized capability, we're able to really penetrate further into the markets where there wasn't local providers before. So we remain real bullish on what the capability in the market is to absorb high-value tonnes from a regional source.

憑藉新的價值線（包括噴漆和鍍鋅功能），我們能夠真正進一步滲透到以前沒有本地供應商的市場。因此，我們仍然非常看好市場從區域來源吸收高價值噸的能力。

And to be honest, today, we can sell every time we can produce it at Sinton. It's not a market-restricted shipment number. And I think you also have to look at the incredible growth that will take place and demand growth that will take place in Mexico over the next few years.

說實話，今天，我們只要在辛頓生產就能賣出去。這不是市場限制的出貨編號。我認為您還必須關注未來幾年墨西哥將發生的令人難以置信的成長和需求成長。

If you look at -- we and others talk about onshoring, reshoring, trans-shoring, however you want to look at it. The growth then in Mexico, you've got to be there to witness it and experience it. It is absolutely phenomenal. So the market is going to continue to grow as we anticipated back in, I think, 2018, 2019, when we came up with the project in the first place.

如果你看看——我們和其他人談論在岸、回流、跨岸，無論你想怎麼看。墨西哥的發展，你必須在那裡見證和體驗。這絕對是非凡的。因此，市場將繼續成長，正如我們在 2018 年、2019 年最初提出該專案時所預期的那樣。

Timna Tanners, Wolfe Research.

蒂姆納坦納斯，沃爾夫研究。

Great, thank you very much and good morning. I wanted to -- just one quick follow up on different take on Sinton. I'm trying to understand why it's still at 75% guided in your release into second half and not full out. And then also, is there an opportunity to boost exports given that [Lázaro Cárdenas] has been down for, I think, almost two months, a month and a half? Or is there any issue with the trade protections against Mexico? Does that change the dynamic any? Thanks.

太好了，非常感謝，早安。我想——只是對辛頓的不同看法進行快速跟進。我試圖理解為什麼它在下半年發佈時仍處於 75% 的引導狀態，而不是完全釋放。另外，考慮到[拉薩羅·卡德納斯]已經下降了近兩個月、一個半月，是否有機會促進出口？或者說對墨西哥的貿易保護有什麼問題嗎？這會改變動態嗎？謝謝。

We don't see the trade dynamics changing with Mexico in the short term. There is an effort, of course, to stop the surge, and there's been recent activity on the 232. We anticipate that the products that we're currently moving into Mexico will continue to move that way.

我們認為短期內與墨西哥的貿易動態不會改變。當然，我們正在努力阻止這種激增，最近 232 上也出現了一些活動。

There is a shortage in the Mexican market because of other outages that are in Mexico. So we'll continue to take advantage of opportunities where it makes sense. And as we look at the total capacity, like most things, a steel plant is not a light switch we just turn on. So as we look towards growing to the second half of the year, we believe as we look at the second half, we're going to achieve those utilization rates.

由於墨西哥其他地區停電，墨西哥市場出現短缺。因此，我們將繼續利用有意義的機會。當我們審視總產能時，就像大多數事情一樣，鋼鐵廠並不是我們只需要打開的電燈開關。因此，當我們展望下半年的成長時，我們相信，當我們展望下半年時，我們將實現這些利用率。

Katja Jancic, BMO.

Katja Jancic，BMO。

Hi. Maybe going back to the aluminum rolling mill for a bit, I think you mentioned that initially, the mix is going to be more tilted to industrial products. Can you talk a little bit -- is there a margin difference between industrial products, the can sheet, and auto markets products?

你好。也許回到鋁軋機，我想你提到最初，混合將更傾向於工業產品。您能談談工業產品、罐頭板材和汽車市場產品之間的利潤率差異嗎？

Yes. The thinner margins tend to be in can sheet if you were to stack them, again, because of the volume of that product. The industrial products, certainly and particularly, if we were to put them through our paint lines, are going to be as valuable as any of the outputs.

是的。如果您要堆疊它們，那麼由於該產品的體積，較薄的邊距往往會出現在罐片中。當然，特別是如果我們將工業產品放入我們的油漆生產線中，它們將與任何產出一樣有價值。

Andrew Keches, Barclays.

安德魯·凱奇斯，巴克萊銀行。

Yes. Good morning. Thanks for taking my questions. A question for Theresa, you've refinanced the 2024 notes or maybe even some of the '25s. You generally just seem to be in a pretty favorable balance sheet position right now. But you've been upgraded by two of the agencies in the past year. You got another on positive. You threw a lot of the aluminum spending, leverage is still pretty low, and you'll get the cash flow benefit from that probably by the end of '25 or '26 it sounds like.

是的。早安.感謝您回答我的問題。問 Theresa 一個問題，您已經為 2024 年甚至一些 25 年代的票據進行了再融資。一般來說，你目前的資產負債表狀況似乎相當有利。但去年你已經被兩家機構升級了。你又得到了一個陽性結果。你投入了大量的鋁支出，槓桿率仍然很低，聽起來可能到 25 或 26 年底你就會從中獲得現金流收益。

So I guess just taking a step back, can you just give us an update in terms of what the direction of the balance sheet is from here? Do you see the capacity to carry more leverage, knowing how leverage has been relatively conservative at low pricing points? Or do you want to preserve some optionality for future opportunities? I guess that's a hidden second question on what the pipeline might look like for you.

所以我想退後一步，您能為我們介紹一下資產負債表的最新方向嗎？您知道在低定價點槓桿相對保守的情況下，您是否認為有能力承擔更多槓桿？或者您想為未來的機會保留一些選擇權嗎？我想這是一個隱藏的第二個問題，即管道對您來說可能會是什麼樣子。

Good morning. Thanks for the question. So yes, the balance sheet does have extra capacity for leverage. As you know, ahead of large projects, organic projects specifically like Sinton at just under $2 billion and now the aluminum investments at $2.7 billion.

早安.謝謝你的提問。所以，是的，資產負債表確實具有額外的槓桿能力。如您所知，在大型專案之前，有機專案尤其是 Sinton 的投資額接近 20 億美元，而現在的鋁投資額為 27 億美元。

We like to be a little more conservative with the balance sheet and build cash in advance of those investments so that we can make sure that we still have optionality for growth if there would be a downturn because we like to have that optionality. We tend to get that better value and better valuations in return in a weaker demand environment.

我們希望對資產負債表更加保守，並在這些投資之前累積現金，這樣我們就可以確保，如果出現經濟低迷，我們仍然有成長的選擇，因為我們喜歡有這種選擇。在需求疲軟的環境中，我們傾向於獲得更好的價值和更好的估值作為回報。

So there is room on the balance sheet and that's why we've been able to actually stay consistent and grow the shareholder distributions during these high-growth periods, which is very important to us, and we think very beneficial to the shareholders as well. So you will likely see us continue -- well, you will see us continue with our strong shareholder distributions.

因此，資產負債表上有空間，這就是為什麼我們能夠在這些高成長時期實際上保持一致並增加股東分配，這對我們非常重要，我們認為對股東也非常有利。所以你可能會看到我們繼續下去——好吧，你會看到我們繼續強大的股東分配。

There are other opportunities for growth. There are some organic opportunities that the teams are talking about. They're not nearly the size or scope of aluminum or of Sinton, but they are absolutely beneficial, differentiating, high return, et cetera.

還有其他成長機會。團隊正在討論一些有機機會。它們的規模或範圍遠不及鋁業或 Sinton 的規模或範圍，但它們絕對是有益的、差異化的、高回報的，等等。

In addition to that, we do believe that there could be some optionality in transactions. We're very particular. We're very disciplined as it relates to acquisitions, ensuring that there is an appropriate valuation and return for Steel Dynamics. So you do see us being more disciplined than some others in the industry. But that being said, we think that there will be some opportunities along those lines as well. So I would just say more of the same, yet at the same time, we understand that the balance sheet's there to use.

除此之外，我們確實相信交易中可能存在一些選擇性。我們很特別。我們在收購方面非常嚴格，確保 Steel Dynamics 獲得適當的估值和回報。所以你確實看到我們比業內其他一些公司更自律。但話雖這麼說，我們認為在這些方面也會有一些機會。所以我只想說更多相同的話，但同時，我們知道資產負債表是可以使用的。

Bill Peterson, JPMorgan.

比爾彼得森，摩根大通。

Yes, hi. Good morning, and thanks for taking the question. Thanks for the color on the aluminum business. I guess the question is, when do you expect to lock in long-term contracts for the rolling mill, maybe across the markets? As well as can you update us on your latest thoughts in terms of the qualification timeline for packaging and automotive, those markets? How long will it take to get qualified in those markets? Thanks.

是的，嗨。早上好，感謝您提出問題。感謝您對鋁業的關注。我想問題是，您預計什麼時候鎖定軋機的長期合同，也許是跨市場的合約？您能否向我們介紹一下您對包裝和汽車市場資格時間表的最新想法？獲得這些市場的資格需要多長時間？謝謝。

As we said earlier, the initial material for qualification of the can sheet and auto will start in '25. As you can recognize, the consumer base is not necessarily going to dedicate long, long contracts at that moment in time. But come the end of '26, I would expect the longer-term contracts, which in those markets are three, four years. The duration would be in '26.

正如我們之前所說，罐板和汽車資格的初始材料將於 25 年開始。正如您所認識到的，消費者群體不一定會在那個時候簽訂長期合約。但到 26 年底，我預計會簽訂長期合同，在這些市場中，合約期限為三、四年。持續時間為'26。

I would just add to that we have -- there's a very extensive, both demand draw and plan in place for 2025 and 2026, purposely with a numerous number of customers that have already indicated volumes that they would have available to us for all of the industrial, for the automotive, and for the can sheet. So it's a very robust commercial dialogue that we're having, and we feel very confident in having the ability to market those materials in the interim.

我想補充一點，我們已經制定了非常廣泛的 2025 年和 2026 年需求圖和計劃，專門針對大量已經表示可以向我們提供的所有客戶的數量。因此，我們正在進行一次非常強大的商業對話，我們對在此期間銷售這些材料的能力非常有信心。

Alex Hacking, Citi Investment Research.

亞歷克斯‧哈金（Alex Hacking），花旗投資研究部。

Yes. Thanks, Mark and Theresa. Just a clarification on the aluminum mill. When you talk about 50% utilization in '25 and 75% in '26, is that the average or that's the exit rate?

是的。謝謝，馬克和特蕾莎。只是對鋁廠進行澄清。當您談到 25 年的利用率為 50% 和 26 年的利用率為 75% 時，這是平均值還是退出率？

For the 2026, Alex, that's not the exit rate. That's for the full year. The exit rate would be close to full capacity in 2026.

對於 2026 年，Alex，這不是退出率。這是全年的情況。 2026 年退出率將接近滿載。

John Tumazos, Very Independent Research.

約翰·圖馬佐斯，非常獨立的研究。

Thank you very much. Concerning the total steel market, last year, indirect steel imports rose another 3 million tonnes. And in April and May, total steel imports, including slabs, were 30% share. I didn't get it right. I thought with all the new -- beautiful new electric furnace steel capacity coming online, domestic shipments would rise and imports would fall.

非常感謝。從整個鋼鐵市場來看，去年間接鋼鐵進口量又增加了300萬噸。 4月和5月，包括板坯在內的鋼材進口總量佔比為30%。我沒聽對。我認為，隨著所有新的、漂亮的新電爐鋼產能上線，國內出貨量將會增加，進口量將會下降。

Do you think there's a customer preference for blast furnace metal, or do you think domestic pricing in hindsight was just too aggressive, too high? It amazes me when the customers want the foreign steel because the delivery window isn't precise and they have to carry much more inventory and have much more steel price risk, et cetera.

您認為顧客對高爐金屬有偏好，或事後認為國內定價過於激進、過高？當客戶需要外國鋼材時，我感到很驚訝，因為交貨窗口不精確，他們必須攜帶更多庫存，面臨更大的鋼材價格風險等等。

I think, John, as we see the imports, I think generally for the year -- year to date, up like 10% or thereabouts. And that license is mitigating a little. The propensity is in coded products. They were up 60% year to date. And obviously, the spread, the hot band, the coated spread is still about $200 or thereabouts. And our dear friends, dear foreign friends, have taken advantage of that to some degree.

約翰，我認為，正如我們所看到的，今年迄今為止的進口量總體上增長了 10% 左右。該許可證正在減輕一些影響。這種傾向存在於編碼產品中。今年迄今為止，它們上漲了 60%。顯然，價差、熱帶、塗層價差仍然約為 200 美元左右。我們親愛的朋友，親愛的外國朋友，在某種程度上已經利用了這一點。

Carlos De Alba, Morgan Stanley.

卡洛斯·德阿爾巴，摩根士丹利。

Thank you. I appreciate the follow up. I just want to see if you can comment on the pricing for the backlog in the fabrication business. If I heard correctly, the backlog extends into the fourth quarter. Any color that you can offer on the pricing for that material?

謝謝。我很欣賞後續行動。我只是想看看您是否可以對製造業務積壓的定價發表評論。如果我沒聽錯的話，積壓的訂單會延續到第四季。您可以在該材料的價格上提供任何顏色嗎？

Carlos, we can't be specific about that. I would tell you that from historical basis, it's very strong on a go-forward basis. And there has been stabilization in pricing, specifically around the joist products and the decking products as well. So that's all the color we can give you, I apologize.

卡洛斯，我們不能具體說明這一點。我想告訴你，從歷史的角度來看，它的未來發展非常強大。價格也趨於穩定，特別是托樑產品和裝飾產品的價格。這就是我們能給你的所有顏色，我很抱歉。

Christopher LaFemina, Jefferies.

克里斯多福·拉費米納，傑弗里斯。

Hey, good morning. Thanks for my question. Most of my questions have been answered, but I just had one on the cash flow in the second quarter, and in particular on the working capital build. How should we think about the reversal of that through the second half of the year, and what portion of that working capital build is a function of the aluminum mill and Sinton still ramping up? Is some of that going to linger into 2025 and 2026? Thank you.

嗨，早安。謝謝我的問題。我的大部分問題都已得到解答，但我只有一個關於第二季現金流的問題，特別是關於營運資本建設的問題。我們該如何看待下半年這種情況的逆轉，以及營運資金建設的哪一部分是鋁廠和 Sinton 仍在增加的功能？其中一些會持續到 2025 年和 2026 年嗎？謝謝。

You're welcome. None of it related to, really, the aluminum mill at this point in time, because we're still constructing. And as it relates to the San Luis Potosí slab center, they're just getting ready to start maybe building some scrap reserves in anticipation of slab production in the first quarter of 2025.

不客氣。實際上，目前這些都與鋁廠無關，因為我們仍在建造中。由於這與聖路易斯波托薩板坯中心相關，他們正準備開始建立一些廢料儲備，以預計 2025 年第一季的板坯生產。

As it relates to the build, there was a structural increase in inventories related to the four value-added lines as we were putting substrate in front of those lines in anticipation of ramping them up during this period of time. And so there will still be some increase as Sinton ramps up the second half of the year structurally, but there's also availability of inventory reduction at the long product steel mills and some of the other areas.

由於與建造相關，與四個增值生產線相關的庫存出現了結構性增長，因為我們將基材放在這些生產線前面，預計在此期間會增加它們。因此，隨著辛頓下半年結構性產能的增加，庫存仍將增加，但長材鋼廠和其他一些地區也可能減少庫存。

So I would expect to see working capital not be a significant draw in the second half of the year, but rather potentially be either not neutral or a funding source. The biggest part of the moving cash flow was really our estimated tax payments in the quarter.

因此，我預計營運資金不會在今年下半年成為一個重大的吸引力，但可能不是中性的或一個資金來源。流動現金流的最大部分實際上是我們本季的估計納稅額。

Timna Tanners, Wolfe Research.

蒂姆納坦納斯，沃爾夫研究。

Hey, thanks for taking my quick follow up. I was also asking about cash flows. If we think about the $1.2 billion remaining CapEx in the second half, the $400 million debt pay down, I'm just trying to think about if you want to keep the buyback steady as you have over the last several quarters, or if there's any shifts that you might make to your capital allocation policy given those big uses of cash. Thanks.

嘿，感謝您對我的快速跟進。我還問了現金流。如果我們考慮下半年剩餘的 12 億美元資本支出，以及償還的 4 億美元債務，我只是想考慮是否要像過去幾個季度一樣保持回購穩定，或者是否有任何回購鑑於現金的大量使用，您可能會對資本配置政策做出調整。謝謝。

We're very comfortable with our cash flow generation capability. At this point in time, given what we can see, there's no expectation of changing our capital allocation policy for the remainder of the year.

我們對我們的現金流產生能力非常滿意。目前，鑑於我們所看到的情況，預計我們在今年剩餘時間內不會改變資本配置政策。

Alex Hacking, Citi Investment Research.

亞歷克斯‧哈金（Alex Hacking），花旗投資研究部。

Hi, yes. Thanks for taking my follow up. I'm just curious, in your perspective -- or are you concerned about some of the rhetoric around Mexico and the steel trade with Mexico? The US is a net export for flat steel to Mexico, right? Sinton is targeting Mexico for offtake. Are you concerned that some of the rhetoric that's sprung up recently could lead to more tariffs, retaliatory tariffs? And is that a potential risk that you're considering, or how do you think about that? Thank you.

嗨，是的。感謝您接受我的跟進。我只是好奇，從您的角度來看，或者您是否擔心圍繞墨西哥以及與墨西哥的鋼鐵貿易的一些言論？美國是向墨西哥淨出口扁鋼的國家，對吧？ Sinton 的採購目標是墨西哥。您是否擔心最近出現的一些言論可能會導致更多關稅、報復性關稅？這是您正在考慮的潛在風險嗎？謝謝。

Well, I guess from my perspective, there's certainly some noise and perhaps short-term aggravations going back and forth. But longer term, as I said earlier, the growth -- the steel demand growth within Mexico is going to continue to be considerable. They're going to continue to be steel short. They're going to need our products. In particular, they're going to need our coated and downstream products, perhaps a little more so than hot band. But they're going to be steel short, and in the big picture, I don't see a material problem there.

好吧，我想從我的角度來看，肯定會有一些噪音，也許還會出現短期的惡化。但從長遠來看，正如我之前所說，墨西哥境內的鋼鐵需求成長將繼續相當可觀。他們將繼續短缺鋼材。他們將需要我們的產品。特別是，他們將需要我們的塗層和下游產品，也許比熱軋帶更需要一些。但它們將會短缺，而且從大局來看，我不認為有材料問題。

Thank you. That concludes our question-and-answer session. I'd like to turn the call back 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。

Thank you to everyone. I just want to close in saying, I think, SDI, it's an incredible company doing incredible things. We couldn't do it without our inspirational teams and their families. We can't do it without the support of our loyal customers. We will continue to work with you to create innovative value, creating opportunities for you, both the things you need today and what you may not even know you need tomorrow.

謝謝大家。最後我想說，我認為，SDI，這是一家令人難以置信的公司，做著令人難以置信的事情。如果沒有我們鼓舞人心的團隊及其家人，我們就無法做到這一點。沒有忠實客戶的支持，我們就無法做到這一點。我們將繼續與您合作，創造創新價值，為您創造機會，無論是您今天需要的東西，還是您明天可能不知道需要的東西。

And again, we need the support of our service providers that you folks are integral with everything we do. And for those that are shareholders, thank you for your faith in us. We treat your investment as our own, and we'll continue to grow our company wisely. Thank you. Have a great day. Be safe.

再說一遍，我們需要服務提供者的支持，你們是我們所做的一切不可或缺的一部分。對於那些股東，感謝你們對我們的信任。我們將您的投資視為我們自己的投資，我們將繼續明智地發展我們的公司。謝謝。祝你有美好的一天。注意安全。

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，祝您有美好而安全的一天。