Steel Dynamics Inc (STLD) 2024 Q3 法說會逐字稿

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Good day and welcome to the Steel Dynamics third-quarter 2024 earnings conference call. (Operator Instructions) Please be advised that this call is being recorded today, October 17, 2024, and your participation implies consent to our recording of this call. If you do not agree to these terms, please disconnect. At this time, I would like to turn the conference over to David Lipschitz, Director, Investor Relations. Please go ahead.

美好的一天，歡迎參加 Steel Dynamics 2024 年第三季財報電話會議。 （操作員說明）請注意，本次通話將於今天（2024 年 10 月 17 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，請斷開連線。現在，我想將會議交給投資者關係總監 David Lipschitz。 請繼續。

Thank you, Kelly. Good morning, and welcome to Steel Dynamics' third-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, and 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，凱利。早安，歡迎參加 Steel Dynamics 2024 年第三季財報電話會議。 謹此提醒，今天的通話正在錄音中，並將在今天晚些時候在我們的網站上重播。 今天的電話會議由 Steel Dynamics 董事長兼執行長 Mark Millett、執行副總裁兼財務長 Theresa Wagler 以及總裁兼營運長 Barry Schneider 主持。 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. Such statements involve risks and uncertainties related to integrating are starting up new assets, the aluminum industry, the use of estimates and assumptions in connection with our anticipated project returns in our steel, metals, recycling and fabrication businesses, as well as the general business and economic conditions.

今天的一些陳述僅代表截至目前的情況，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，如果實際發生，這些陳述將受到1995 年《私人證券訴訟改革法案》的保護。 此類陳述涉及與整合正在啟動的新資產、鋁業、與我們的鋼鐵、金屬、回收和製造業務以及一般業務和製造業務的預期項目回報相關的估計和假設的使用相關的風險和不確定性。

Examples of these are described in the related press release as well as in our annually filed SEC Form 10-K under the headings. Forward-looking Statements and Risk Factors found on the Internet at www.sec.gov and if applicable, in any later SEC Form 10-Q. You'll also find it any referenced. Non-GAAP financial measures are reconciled to the most directly comparable GAAP measures in the press release issued yesterday entitled Steel Dynamics Reports third-quarter 2024 result.

相關新聞稿以及我們每年提交的 SEC 表格 10-K 標題下描述了這些範例。 前瞻性陳述和風險因素可在互聯網 www.sec.gov 上找到，如果適用，可在任何後續 SEC 表格 10-Q 中找到。 您還會發現它有任何參考。 非公認會計準則財務指標與昨天發布的題為「Steel Dynamics 2024 年第三季業績報告」的新聞稿中最直接可比的公認會計準則指標進行了調整。

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. Thank you for joining our third-quarter of 2024 earnings call. As you have read and seemingly have concluded, our teams executed well through the quarter, achieving another solid financial and operational performance. Most gratifying to us to move in particular was achieving another great quarter for safety.

謝謝你，大衛。 大家早安。 感謝您參加我們的 2024 年第三季財報電話會議。 正如您所讀到的，並且似乎已經得出結論，我們的團隊在本季度表現良好，再次實現了穩健的財務和營運表現。 最讓我們感到高興的是，我們在安全方面又實現了一個偉大的季度。

The ramp-ups of our four new value-add flat roll steel coating lines have been an unqualified success with the expectation of full earnings benefit in 2025. These lines represent an additional 1.1 million tons of high margin product diversification for us. In Texas, despite a couple of challenges during the quarter and '17 gained considerable momentum running out of 72% utilization rate of scheduled runtime in September. We had extended periods in excess of 90% and which were achieved during the quarter. I think it proves the mills Autema capability.

我們的 4 條新增值平捲鋼塗層生產線的擴建取得了巨大的成功，預計將在 2025 年實現全部盈利。在德州，儘管本季和 17 年遇到了一些挑戰，但仍獲得了相當大的動力，9 月預定運行時間的利用率達到 72%。我們延長了超過 90% 的期限，並在本季度實現了這一目標。 我認為這證明了奧特瑪工廠的能力。

Steel shipments were 3.2 million tons. Third-quarter revenues $4.3 billion. Adjusted EBITDA was $557 million in cash flow from operations and [$60 million] So as I stated, we had a great quarter in terms of safety. Historically or the summer months can be challenging period for the teams reverse that trend this year with an excellent performance. Not only was that trend reversed both our total recordable incident rate and last time rates were the lowest in our history.

鋼材出貨量為320萬噸。第三季營收43億美元。 調整後的 EBITDA 為營運現金流 5.57 億美元，[6000 萬美元] 因此，正如我所說，我們在安全方面度過了一個出色的季度。從歷史上看，夏季對球隊來說是一個充滿挑戰的時期，今年他們將以出色的表現扭轉這一趨勢。 這一趨勢不僅扭轉了我們的總可記錄事故率，而且上次事故率也達到了我們歷史上的最低水準。

Our employee dedication to take control of safety program is extraordinary. Our core safety teams visited 30 facilities and third quarter alone, which is, I think, a clear testament to their commitment to keep each other safe. We continue to build world-class safety culture and the positive results have been clearly demonstrated. 84% of our locations in the third quarter did not have a recordable injury. That's a 104 locations out of our 124, and 94% one of them did not have a lost time incident.

我們的員工對控制安全計劃的奉獻精神是非凡的。 僅在第三季度，我們的核心安全團隊就訪問了 30 個設施，我認為，這清楚地證明了他們保證彼此安全的承諾。 我們持續打造世界級的安全文化，正面成果已經顯現。第三季我們 84% 的地點沒有發生可記錄的傷害事故。 這是我們 124 個地點中的 104 個，其中 94% 的地點沒有發生過誤工事件。

I'm continually inspired by the commitment of our team members have for one another. It really truly consider themselves, family and challenge the status quo every day to do better in every way. That's why we're so focused on providing the very best for the health, safety and welfare. That said, there's still a lot of work to do as we strive toward a zero incident environment. But with that, I will pause for Theresa and Barry to add color for the quarter.

我們團隊成員之間的相互承諾不斷激勵著我。 它真正真正地考慮自己、家人，每天挑戰現狀，在各方面做得更好。 這就是為什麼我們如此專注於為健康、安全和福祉提供最好的服務。 儘管如此，在我們努力實現零事故環境的過程中，仍有許多工作要做。 但說到這裡，我將暫停一下，讓特蕾莎和巴里為這個季度增添色彩。

Thank you, Mark. Good morning, everyone. We really do appreciate you taking the time to be in the call with us this morning. And I want to add my thanks to our teams for a really solid performance this quarter. As Mark suggested, our third-quarter 2024 net income was $318 million or $2.5 per diluted share, with adjusted EBITDA of $557 million. Third-quarter 2024 revenue of $4.3 billion was below sequential second-quarter results due to lower realized flat-rolled steel pricing tied to lagging contractual volume.

謝謝你，馬克。 大家早安。我們非常感謝您今天早上抽出時間與我們通話。 我想對我們的團隊本季的出色表現表示感謝。 正如 Mark 所言，我們 2024 年第三季淨利為 3.18 億美元，即稀釋後每股收益 2.5 美元，調整後 EBITDA 為 5.57 億美元。 2024 年第三季的營收為 43 億美元，低於第二季的連續業績，原因是與滯後的合約量相關的扁鋼實現定價較低。

Our third-quarter operating income of $395 million was 29% lower than sequential second-quarter results, driven by steel metal spread contraction as average realized pricing decline more than scrap material costs in the quarter. Our field operations generated operating income of $305 million in the third quarter, lower than sequential results due to an average realized pricing declined $79 to $1,059 per time, w hile total shipments were study has increased lateral volume offset our structural and SBQ value.

我們第三季的營業收入為 3.95 億美元，比第二季的連續業績下降 29%，這是由於鋼鐵金屬價差收縮所致，因為本季平均實現定價下降幅度超過了廢料成本。我們的現場業務在第三季創造了3.05 億美元的營業收入，低於連續業績，因為平均實現定價每次下降79 美元至1,059 美元，而研究的總出貨量增加了橫向銷量，抵消了我們的結構和SBQ 價值。

For those of you that track our individual flat-rolled shipments quarter-by-quarter, in the third quarter, hot-rolled shipments were 943,000 tons. Cold-rolled shipments were 118,000 tons and coated shipments were 1,335,000 tons. For metals recycling operating income was 12 million lower than sequential second quarter results due to lower realized pricing and volume. In addition, we had an unrealized non-cash copper hedging loss of $10 million in September.

對於那些逐季度追蹤我們單一扁材出貨量的人來說，第三季熱軋材出貨量為 943,000 噸。 冷軋出貨量11.8萬噸，塗層出貨量133.5萬噸。 對於金屬回收業務，由於實現定價和銷售下降，營業收入比第二季業績低 1,200 萬美元。 此外，9 月我們還有 1,000 萬美元的未實現非現金銅對沖損失。

We're the largest non -- or we're the largest North American metals recycling processing and consuming their scrap and non-ferrous aluminum, copper and other metals. And we're growing in support of our increased steel and planned aluminum production investments through new and expanded relationships and through the use of innovative new separation technologies. I'm really proud of the team are also reducing operating costs very effectively.

我們是最大的非金屬回收加工商，或者說我們是北美最大的金屬回收加工商，並消耗其廢料和有色鋁、銅和其他金屬。 我們正在透過新的和擴大的關係以及透過使用創新的分離技術來支持我們增加的鋼鐵和計劃的鋁生產投資。 我為團隊也非常有效地降低營運成本感到非常自豪。

Our steel fabrication team achieved strong operating income of $166 million in the third quarter, lower than second quarter results as a 5% decrease in realized pricing offset steady shipments. Quarter activity in the third quarter was the strongest we've seen this year, supporting our joist and deck backlog extending through the first quarter 2025. As interest rates decline in public funding begins to be distributed post-election and into 2025, we expect to see increased fixed asset investment and corresponding demand drivers for steel and steel fabrication products next year.

我們的鋼鐵製造團隊在第三季實現了 1.66 億美元的強勁營業收入，低於第二季的業績，因為實現價格下降 5% 抵消了穩定的出貨量。 第三季的季度活動是我們今年見過的最強勁的，支持我們的托樑和甲板積壓工作持續到 2025 年第一季。預計明年固定資產投資將增加，鋼鐵及鋼鐵製造產品的需求將隨之成長。

Regarding our aluminum investment. As a reminder, as we construct the aluminum facilities, non-capitalizable expenses are required to close your SG&A and I'll start out as a result, our SG&A will be higher until visibility to this amount provided in our supplemental data schedule. For the third quarter, it was $24 million.

關於我們的鋁投資。 提醒一下，當我們建造鋁設施時，需要非資本化費用來關閉您的 SG&A，因此，我將開始，我們的 SG&A 將會更高，直到我們的補充資料表中提供的這一金額可見。 第三季為 2,400 萬美元。

We have expectations for aluminum investments to be EBITDA positive in the second half of 2025 and plan to operate the rolling mill at approximately 75% of its capacity in 2026. Mark's going to provide more details related to our ramp and product mix expectations later on the call as well as just fine or differentiate cost expectations. The construction of the rolling mill and the San Luis Potosi recycles lab center is going extremely well. Approximately $1.9 billion has already been invested through September of 2024, with expectations of funding between $350 million to $400 million in the fourth quarter and the remainder then to be spent in the first half of 2025.

我們預計鋁投資將在2025 年下半年實現EBITDA 為正值，併計劃在2026 年以約75% 的產能運營軋機。 。 軋機和聖路易斯波托西回收實驗室中心的建設進展非常順利。 截至 2024 年 9 月，已投資約 19 億美元，預計第四季融資 3.5 億至 4 億美元，其餘資金將在 2025 年上半年支出。

Our cash generation continues to be strong based on our differentiated circular business model and highly variable cost structure. During the third quarter of 2024, we generated cash from operations of $760 million. We ended the quarter with strong liquidity of $3.1 billion, comprised of cash and short-term investments of $1.9 billion and our fully available unsecured revolver and $1.2 billion. For the fourth quarter of '24, w e believe capital investments will be in the range of $500 million to $550 million.

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 年第三季度，我們從營運中產生了 7.6 億美元的現金。 本季結束時，我們擁有 31 億美元的強勁流動性，其中包括 19 億美元的現金和短期投資以及我們完全可用的無擔保左輪手槍和 12 億美元。我們認為 2024 年第四季的資本投資將在 5 億至 5.5 億美元之間。

Preliminarily, we believe 2025 capital investments will be in the range of $700 million to $800 million. We repurchased $917 million of our common stock year-to-date 2020 are representing 4.5% of our outstanding shares. And as of September 30, we have $486 million remaining available for share repurchases.

我們初步認為 2025 年資本投資將在 7 億至 8 億美元之間。 2020 年迄今，我們回購了 9.17 億美元的普通股，占我們已發行股票的 4.5%。 截至 9 月 30 日，我們還有 4.86 億美元可用於股票回購。

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 repurchase program. While we remain dedicated to preserving our investment-grade credit designation, our track record is proven achieving five Our after-tax return on invested capital of 24% during a period of transformational growth and strong shareholder returns.

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，並輔以可變股票回購計畫。 雖然我們仍然致力於維持我們的投資等級信用稱號，但我們的業績記錄已證明，在轉型成長和強勁的股東回報期間，我們的投資資本稅後回報率達到了 24%。

Our free cash flow profile has fundamentally changed over the last five years from an annual average of $540 million to $2.9 billion. Excluding our large strategic standpoint and an aluminum investments in July, we successfully issued $600 million of investment grade notes with a 10-year tenure in anticipation of repaid $400 million of our notes that are due this December.

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 29 億美元。 除去我們7月的大型策略立場和鋁投資，我們成功發行了6億美元、期限為10年的投資等級票據，預計將償還今年12月到期的4億美元票據。

Before I conclude, I want to thank the decarbonization and bio carbon team. I'm proud of them and excited about the recent announcement concerning our new certified science-based greenhouse gas emissions intensity targets for our steel mills, which are aligned with the 1.5 degree celsius scenarios that are in the Paris Agreement. In fact, our steel mills are already well ahead of that curve, where we recently set both a 2050 emissions intensity target, which is aligned with the International Energy Agency's net zero by 2050 industry gets and an interim 2030 target, which represents a 13% reduction in greenhouse gas intensity. These targets abolition using the global steel climate councils, steel climate standard, of which we are a founding member.

在結束之前，我要感謝脫碳和生物碳團隊。 我為他們感到自豪，並對我們最近宣布的關於我們鋼廠新的經過認證的、基於科學的溫室氣體排放強度目標感到興奮，這些目標與《巴黎協定》中的 1.5 攝氏度情景一致。 事實上，我們的鋼廠已經遠遠領先於此曲線，我們最近設定了2050 年排放強度目標（該目標與國際能源總署的2050 年工業淨零排放目標一致）和2030 年中期目標（相當於13%）減少溫室氣體排放強度。 這些目標透過全球鋼鐵氣候委員會、鋼鐵氣候標準廢除，我們是該委員會的創始成員。

The bio carbon project is also going incredibly well with expectations for our first quarter 2025 start. Sustainability is 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 business with the highest integrity. We uniquely have an actionable path towards carbon neutrality that is more manageable, and we believe considerably less expensive than they were at may lie 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. Same. Barry, sorry, my phone.

生物碳計畫也進展順利，符合我們 2025 年第一季啟動的預期。永續發展是我們長期價值創造策略的重要組成部分，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經營我們的業務。 我們獨特地擁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，對於我們的許多行業同行來說，未來的成本可能會比現在低得多。 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。 相同的。 巴里，對不起，我的手機。

Thank you, Teresa. Our steel fabrication operations performed well in the third quarter, achieving historically strong earnings and steady volume in the quarter. Our steel fabrication order backlog remains at a healthy level, extending through the first quarter 2025. We remain optimistic as it relates to demand for steel, joists and deck markets over the next number of years, based on a moderating interest rate environment, continued manufacturing, onshoring and public funding for infrastructure and other fixed asset investment programs. The uplift from this macro environment could be considerable for this platform as well as our steel operations.

謝謝你，特蕾莎。 我們的鋼鐵製造業務在第三季表現良好，實現了歷史上強勁的獲利和穩定的產量。 我們的鋼鐵製造訂單積壓保持在健康水平，持續到 2025 年第一季。基礎設施和其他固定資產投資項目的外包和公共融資。 對於這個平台以及我們的鋼鐵業務來說，這種宏觀環境的提升可能是相當大的。

Our steel fabrication platform also provides meaningful volume support for our steel operations, which allows us to constantly operate at a higher through-cycle utilization rate, but also mitigates the financial risk lower steel prices. The Metals Recycling team did a good job navigating a challenging marketing of market environment. And third quarter, there were a number of domestic steel mill outages, which decreased where scrap demand, coupled with pricing, volatility.

我們的鋼鐵製造平台也為我們的鋼鐵業務提供了有意義的數量支持，這使我們能夠持續以更高的全週期利用率運營，同時也減輕了鋼材價格下跌的財務風險。 金屬回收團隊在應對充滿挑戰的市場環境行銷方面表現出色。 而三季度，國內出現多家鋼廠停產，其中廢鋼需求減少，加上定價波動較大。

For scrap prices have stabilized, we believe should remain relatively stable through the rest of the year, subject to seasonal moves. 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, our Mexican recycling locations competitive. We have advantage our Columbus and certain raw material positions.

由於廢鋼價格已經穩定，我們認為今年剩餘時間應保持相對穩定，但會受到季節性波動的影響。 我們的金屬回收平台的北美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，我們的墨西哥回收地點具有競爭力。 我們擁有哥倫布和某些原料地位的優勢。

We also strategically support increased procurement of aluminum scrap for our future flat-rolled aluminum operations, our metals recycling team as part of growing even more closely with both steel and aluminum teams to expand scrap separation capabilities through process and technology solutions. This helps mitigate potential prime for scrap supply issues in the future. It also provides us with a significant advantage to increase the recycled content in our aluminum flat roll products and increase our earnings opportunities. Steel team also had a solid quarter, achieving steady shipments of 3.2 million tons.

我們也從策略上支持我們未來的壓延鋁業務增加鋁廢料採購，我們的金屬回收團隊與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。 這有助於緩解未來潛在的廢鋼供應問題。 它還為我們提供了顯著的優勢，可以增加鋁扁捲產品中的回收含量並增加我們的獲利機會。 鋼鐵團隊季度業績也表現強勁，實現穩定出貨320萬噸。

During the third quarter 2024, the domestic steel industry operated at an estimated production utilization rate of 78%, while our steel mills operated at a rate of 86%. Excluding our suite of operation, 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 business. Higher through-cycle utilization of our CMOs is one of our key competitive advantages, supporting our strong and growing cash generation capability and best in class financial metrics.

2024年第三季度，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86%。 除我們的業務套件外，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我們內部製造業務的支持，我們始終以較高的利用率運作。 CMO 的全週期利用率更高是我們的關鍵競爭優勢之一，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。

Our realized average flat roll steel price decline in the quarter due to contract lags the price prices stabilize and improve in the quarter. Positively value added flat. Roll steel pricing spreads remained resilient, supporting our earnings as we are the largest producer of these products in North America and growing, our activity has solid, adding in the fourth quarter with normal seasonal trends expected general, our flat rolled steel mills lead times are actually at levels higher than we've seen over the last six months.

由於合約滯後，本季我們實現的平均扁捲鋼材價格下降，價格在本季穩定並有所改善。 積極增值持平。 軋鋼價差保持彈性，支撐了我們的收益，因為我們是北美最大的這些產品生產商，並且不斷增長，我們的活動穩定，在第四季度加上預期的正常季節性趨勢，我們的扁鋼廠交貨時間為實際上比我們過去六個月看到的水平還要高。

Underlying steel demand remained steady for the surgeon steel imports put pressure on the supply dynamics in certain product areas, specifically for coated flat roll steel upwards. In response, we leveraged a trade case and we expect to get a preliminary ruling for the ITC. In a few weeks or certain Texas flat roll steel mill team successfully completed the changes early in the quarter to excess 100% of the mills melt capacity. The team experienced some difficulty ramping back up after the outage, however, the reliability and will improve dramatically.

基礎鋼材需求保持穩定，鋼材進口給某些產品領域的供應動態帶來壓力，特別是塗層扁鋼向上。 作為回應，我們利用了一個貿易案件，預計美國國際貿易委員會將做出初步裁決。在幾週之內，某些德州扁鋼廠團隊在本季度初成功完成了改造，使鋼廠熔煉能力超過 100%。 團隊在停電後恢復工作時遇到了一些困難，但可靠性將會顯著提高。

In September, we increased around 75% for the fourth quarter 2024. Also the additional two new value added coating lines were successfully commissioned and have commenced operations, improving the mills value at product mix and through-cycle earnings capability. Regarding the steel mill market environment, North American automotive production estimates for 2024 were recently revised to stay stable production over the next several years. Automotive dealer inventories also continue to remain below historical norms. Non-residential construction remained stable with slowdowns across some industries. However, we believe moderating interest rates will unlock pent-up project work and create new opportunities at 2025.

9 月，我們在 2024 年第四季實現了約 75% 的成長。 就鋼廠市場環境而言，北美汽車產量預計 2024 年最近進行了修正，以保持未來幾年的穩定產量。 汽車經銷商庫存也持續低於歷史正常水準。 非住宅建築保持穩定，部分產業放緩。 然而，我們認為，利率放緩將釋放被壓抑的專案工作，並在 2025 年創造新的機會。

Traditionally, onshoring and temperature infrastructure spending should provide further support to fixed asset investment and related construction oriented products. As for the energy market, the solar industry continues to grow and be a meaningful part for both our Flat Rolled Products and structural sections. Oil and gas also remained steady. Looking forward, we are optimistic regarding steel demand and pricing dynamics as we end 2024 to get ready to enter 2025. With that said, back to Mark.

傳統上，在岸和高溫基礎設施支出應為固定資產投資和相關建築導向產品提供進一步支援。 至於能源市場，太陽能產業持續成長，並成為我們的扁鋼產品和結構型材的重要組成部分。 石油和天然氣也保持穩定。 展望未來，我們對 2024 年底鋼鐵需求和定價動態持樂觀態度，為進入 2025 年做好準備。

Super. Thanks, Teresa. Thank you, Barry. Was more than evident that our performance driven employee-centric culture in combination with a proven, highly diversified value added business model drives superior through-cycle financial metrics. Our consistently strong operating and financial performance continues to support our cash generation and growth investment strategies alone. A balanced cash allocation strategy has consistently delivered the best in class shareholder returns.

極好的。 謝謝，特蕾莎。 謝謝你，巴里。 顯而易見的是，我們以績效為導向的以員工為中心的文化與經過驗證的高度多元化的增值業務模式相結合，推動了卓越的整個週期財務指標。 我們一貫強勁的營運和財務表現繼續單獨支持我們的現金產生和成長投資策略。 平衡的現金分配策略始終為股東帶來一流的回報。

For instance, our investment strategy to achieve a three year return on invested capital of 32% from '21 through '23 compared to only 12% for the S&P500. And our disciplined high return investment approach continues, as I said before, value added flat. Roll Steel coating lines are increasing volume and performing very well f rom a quality perspective. These types of high-return investments are key to our value added product and supply chain differentiation strategies. As I mentioned a lso sentiment continues to be improve its operational reliability with expectations for strong production capability in 2025.

例如，我們的投資策略是從 21 年到 23 年實現三年投資資本回報率 32%，而標準普爾 500 指數的回報率僅為 12%。正如我之前所說，我們紀律嚴明的高回報投資方法繼續保持增值不變。 軋鋼塗層生產線的產量不斷增加，並且從品質角度來看表現非常出色。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。 正如我所提到的，人們也繼續提高其營運可靠性，並期望 2025 年擁有強大的生產能力。

A recent aluminum growth strategy is especially compelling. The market environment and aluminum is not unlike the steel industry was when we started SDI 30-plus years ago, has older assets, heavy legacy costs. A lot of the facilities are inefficient and the high cost and they've had the industry in general have difficulty and earning the cost of capital. And hence, there's been a little investment in facilities and new technologies in recent years.

最近的鋁成長策略尤其引人注目。 鋁的市場環境與 30 多年前我們創辦 SDI 時的鋼鐵業沒有什麼不同，資產較舊，遺留成本很高。 許多設施效率低且成本高昂，導致整個產業普遍難以賺取資本成本。 因此，近年來對設施和新技術的投資很少。

But unlike all steel entry, the the one huge positive is that the a significant deficit in aluminum just in North America in general, and that deficit is expected to grow considerably. There's a clear business alignment. We'll leverage our core core competencies, core competency of construction and operational know-how. And one on asked to look at the drone video on our website to see the extraordinary progress the team has made the construct of the new mills. Also we'll leverage our performance driven culture, driving higher efficiency and lower cost operations. It also level Omni's resegment footprint. As Theresa suggested, we're the largest North American aluminum scrap recycling, and we also developing some in-house new technologies to separate the 5,006 thousand series.

但與所有鋼鐵進入不同的是，一個巨大的積極因素是北美地區鋁材普遍存在嚴重短缺，而且這種赤字預計將大幅增長。 有明確的業務一致性。 我們將利用我們的核心核心能力、建立核心能力和營運知識。 其中一位要求觀看我們網站上的無人機視頻，以了解團隊在建造新工廠方面取得的非凡進展。 此外，我們將利用我們的績效驅動文化，推動更高的效率和更低的營運成本。 它還平衡了 Omni 的重新細分足跡。 正如Theresa所建議的，我們是北美最大的鋁廢料回收公司，我們也開發了一些內部新技術來分離5,006千系列。

Ours is a very, very cost effective and a high return growth opportunities for us. Construction of the expensive rolling mill in Columbus, Mississippi, as I said, is proceeding and an extraordinary pace. And I believe the aluminum industry is now recognizing that we are truly will be a force to be reckoned with future customer base across all sectors is excited to have a new market entrants that has known to be innovative, customer-centric and responsive to their needs. Commercial arrangements are being put in place to match in order book to all ramp-up needs in 2025.

對我們來說，這是一個非常非常具有成本效益和高回報的成長機會。 正如我所說，密西西比州哥倫布市昂貴的軋鋼廠的建設正在進行中，而且速度驚人。 我相信鋁業現在已經認識到，我們確實將成為未來各行業不可忽視的力量，我們很高興能有一個新的市場進入者，他們以創新、以客戶為中心並能滿足他們的需求。 商業安排正在落實到位，以便訂單簿能夠滿足 2025 年的所有成長需求。

Responses from existing and new customers across the markets remain seems incredible as the first for new supply has incentive and we're developing an on-site industrial policy to locate the aluminum processing and consuming facilities through arrangements are currently being negotiated. That will create approximately 100,000 tons of annual tons of processing capability per year. And as our project has become visible reality and our reputation permeates the aluminum industry, aluminum professionals have been knocking on doors. And we've been building on a phenomenal team when I in-depth knowledge of aluminum operations, commercial markets, process technology and customer service. For those that may not have heard in our last call, the scope of the facility is the state of the up 650,000 metric tonne of aluminum flat rolled facility located in Columbus, Mississippi.

市場上現有和新客戶的反應仍然令人難以置信，因為新供應的第一批客戶具有激勵作用，而且我們正在製定一項現場產業政策，透過目前正在談判的安排來定位鋁加工和消費設施。 這將創造每年約10萬噸的加工能力。 隨著我們的項目已成為現實，並且我們的聲譽滲透到鋁業，鋁專業人士紛紛上門。 當我深入了解鋁業營運、商業市場、製程技術和客戶服務時，我們已經建立了一支出色的團隊。 對於那些在我們上次電話會議中可能沒有聽說過的人，該設施的範圍是位於密西西比州哥倫布市的 650,000 公噸鋁扁材軋製設施的狀態。

We'll have an optimized mix of 300,000 tons of Comstock, 230,000 tons of auto and 130,000 tons of industrial and construction products. When when we're fully running the actual site and Columbus, Mississippi as America's lab capacity of 600,000 metric tons. And it's going to be supported by two satellite recycled aluminum slab casting centers located in UBC scrap rich regions.

最佳化組合康斯托克30萬噸、汽車23萬噸、工業及建築產品13萬噸。 當我們完全運行實際站點時，密西西比州哥倫布市的美國實驗室容量為 60 萬噸。 位於 UBC 廢料豐富地區的兩個衛星再生鋁板坯鑄造中心將為其提供支援。

We expanded the project scope to include, as I said, additional scrap processing and segregation technologies to maximize aluminum recycled content. These in-house developed technologies are currently operating successfully separating the time of 6,000 series and movies on a commercial basis every day. The team plans to begin production of slabs in San Luis Potosi, Mexico in the first quarter of 2025. We will commission the Columbus casters in the first quarter of 25 downstream lines to the second quarter with commercial shipments in mid 2025. And that is absolutely on schedule. In 2025, we plan to begin production with the product product mix weighted to industrial and construction products. As we qualify all can sheet and '25 and older products into '26.

正如我所說，我們擴大了專案範圍，包括額外的廢料處理和分離技術，以最大限度地提高鋁的回收含量。 這些內部開發的技術目前已成功運行，每天可將 6,000 部連續劇和電影的時間進行商業分離。 該團隊計劃於2025 年第一季在墨西哥聖路易斯波托西開始生產板坯。這絕對是如期。 2025年，我們計劃開始生產，產品結構以工業和建築產品為主。 因為我們將所有罐頭板材和 '25 及更早的產品限定為 '26。

We anticipate production to grow to 50% of our annual rate by the end of 2025 and expect 75% capacity in 2026. The project is expected to add $650 million to $700 million of through-cycle annual EBITDA, and we should generate approximately $40 million to $50 million through the recycling platform i n addition to that. Although this computes to a higher EBITDA per ton than the industry has experienced in the past, we're confident in that projection and the most significant savings are in four key areas labor, recycled content, yield and logistics, the labor, we should have a reduced workforce of perhaps seven hundreds of 700,000 people versus perhaps 1,200 or more in a conventional facility of this size, have optimized plant layout and material flow will have a central lines, the automated storage system.

我們預計到2025 年底產量將成長到年增長率的50%，並預計到2026 年產能將達到75%。美元的收入除此之外，還透過回收平台籌集到 5,000 萬美元。儘管這計算出的每噸 EBITDA 高於行業過去的經驗，但我們對此預測充滿信心，最顯著的節省是在四個關鍵領域：勞動力、回收材料、產量和物流、勞動力、我們應該擁有的與這種規模的傳統工廠中可能有1,200 人或更多人員相比，勞動力減少了約700 至70 萬人，優化了工廠佈局和物料流，將擁有中央生產線和自動化儲存系統。

So there'll be no touch supplant. The truck and our proven performance based incentive driven culture will drive high productivity, high efficiency and low cost. And we will have no legacy costs. So for those who do the impact road on the operations over the years, recycled content, again, we will level I level our metals recycling platform to drive higher recycle content. We have the largest non-ferrous operations recycling operations, as has already been stated. And we also have a secondary aluminum facility that has been operating for many years that will be additive relocating satellite facilities close to the UBS's UBC rich areas to the west and in Mexico and again leverage the sorting technologies.

所以不會有觸摸取代。 卡車和我們經過驗證的基於績效的激勵驅動文化將推動高生產力、高效率和低成本。 我們將不會產生任何遺留成本。 因此，對於多年來對回收內容進行影響的人來說，我們將再次升級我們的金屬回收平台，以推動更高的回收內容。 如前所述，我們擁有最大的有色金屬回收業務。 我們還有一個已運作多年的再生鋁工廠，該工廠將把瑞銀 UBC 富礦區附近的衛星設施搬遷到西部和墨西哥，並再次利用分選技術。

The yield will be improved. We do believe is going to be a new facility, state-of-the-art equipment and technologies. The scoping technology is absolutely state-of-the-art and will minimize material removal. And we are actually processing through the facilities. Supersized coils produce less heads, less tails, less line stops, all adding to a lower yield losses and logistics, again, locating slab centers close to the UBC rich areas will be a huge benefit as well.

產量將會提高。 我們確實相信這將是一個新的設施、最先進的設備和技術。 範圍界定技術絕對是最先進的，並將最大限度地減少材料去除。 我們實際上正在透過設施進行處理。 超大卷材產生的頭部、尾部和生產線停機次數更少，所有這些都有助於降低產量損失和物流，此外，將板坯中心定位在靠近 UBC 富裕地區也將帶來巨大的好處。

So the excitement within our company and particularly at the ADA sites, continues to grow as our teams recognize their ability to help revolutionize the US aluminum industry as they did in steel for the IMpassion by our current and future growth plans as they will continue to drive the high return growth momentum we have consistently demonstrated over the years.

因此，我們公司內部，特別是ADA 工廠的興奮感持續增長，因為我們的團隊認識到他們有能力幫助徹底改變美國鋁工業，就像他們通過我們當前和未來的增長計劃為IMpassion 改造鋼鐵行業一樣，因為他們將繼續推動多年來我們始終如一地展現出高回報的成長動能。

The earnings growth for these new projects is compelling. The capital spending for central the full value add lines and aluminum dynamics is approximately 85% complete with an estimated collective future through-cycle annual EBITDA contribution of over $1.4 billion. As a problem institutional portfolio manager recently pointed out to US Steel Dynamics has grown to an incredibly resilient cash generating business driven by the best teams in the world. He said in the last five years, you've invested billions of dollars in organic strip strategic growth. Given the return on invested capital of 24% compared to the S&P500 at only 12%. You've increased your cash dividend over 90%, repurchased over 30% of your outstanding shares, all the while maintaining best-in-class investment grade credit metrics.

這些新項目的獲利成長引人注目。 中央全部增值線和鋁動力的資本支出已完成約 85%，預計未來整個週期的年度 EBITDA 貢獻將超過 14 億美元。 正如一位機構投資組合經理最近向 US Steel Dynamics 指出的那樣，在世界上最好的團隊的推動下，該公司已發展成為一家具有令人難以置信的彈性現金生成業務的公司。 他說，在過去的五年裡，你們已經投資了數十億美元用於有機帶材策略成長。 投資資本報酬率為 24%，而標準普爾 500 指數僅為 12%。 您的現金股利增加了 90% 以上，回購了 30% 以上的流通股，同時維持了一流的投資等級信用指標。

You said, it's better than a textbook capital allocation lessons and obviously somewhat biased by I agree, and I am excited as investors recognize the power and consistency of our through-cycle cash generation, combined with our consistent and high return capital allocation strategy. And it's our belief that the steel industry has undergone a paradigm shift in recent years. A shift that will further support our earnings profile is a pervasive sensing Mercantile ISM, which will provide a level playing field through continued an appropriate trade relief.

你說，這比教科書上的資本配置課程要好，而且顯然有些偏見，我同意，而且我很興奮，因為投資者認識到我們整個週期現金生成的力量和一致性，以及我們一致的高回報資本配置策略。 我們相信，鋼鐵業近年來已經發生了典範轉移。 將進一步支持我們獲利狀況的一個轉變是普遍感知的商業 ISM，它將透過持續適當的貿易救濟提供公平的競爭環境。

Covid-driven supply chain, distilling it dislocations, which have accelerated reshoring of manufacturing decarbonization, should materially Stephen the global cost curve, providing SD&A a huge competitive advantage to gain market share and increased metal spreads as our mills have some of the lowest carbon footprints in the world. AI and cloud computing should support nonresidential construction through data center buildout, and it will be growing fixed asset investment driven by the inflation Reduction Act, CHIPS Act and other public monies. In term. With the interest rates moderating, demand will be strong. We do believe, going into and through 2025.

Covid驅動的供應鏈，提煉出錯位，加速了製造業脫碳的回流，應該會實質地改變全球成本曲線，為SD&A提供巨大的競爭優勢，以獲得市場份額並增加金屬價差，因為我們的工廠是碳足跡最低的工廠之一在世界上。人工智慧和雲端運算應該透過資料中心建設來支援非住宅建設，並且在通貨膨脹削減法案、CHIPS法案和其他公共資金的推動下，固定資產投資將不斷增長。 在任期內。 隨著利率放緩，需求將會強勁。 我們確實相信，進入 2025 年並持續到 2025 年。

So in closing, we've been blessed with good fortune and our people, our foundation. I thank each of them for their passion and dedication. We're committed to them. Now remind those listening today that you'll safety for yourselves, your families and each other is our highest priority. Our culture and business model continue to differentiate our performance lead into best in class financial metrics. We're an integrated metals business, providing enhanced lower common supply chain solutions to our customers in turn mitigating volatility in our cash flow generation and provide enhanced shareholder returns value to all participants. We truly look forward to creating new opportunities for everyone today tomorrow and in the years ahead. So with that said, we will open up the call to questions.

最後，我們有幸擁有好運、我們的員工和我們的基礎。 我感謝他們每個人的熱情和奉獻。 我們致力於他們。 現在提醒今天的聽眾，你們自己、家人和彼此的安全是我們的首要任務。 我們的文化和商業模式繼續將我們的業績領先優勢轉化為一流的財務指標。 我們是一家綜合金屬企業，為客戶提供增強的通用供應鏈解決方案，從而減輕現金流產生的波動性，並為所有參與者提供更高的股東回報價值。 我們真誠地期待為今天、明天和未來幾年的每個人創造新的機會。 話雖如此，我們將開放提問。

(Operator Instructions) Your first question is coming from Martin Englert with Seaport Research Partners.

（操作員說明）您的第一個問題來自 Seaport Research Partners 的 Martin Englert。

Hello. Good morning, everyone. I'll briefly touch on this in the prepared remarks, but for the greenfield aluminum projects, are there any other key personnel additions that are still needed? And could you just more broadly touch on the general labor market and how you saw in the process of filling the needs there?

你好。 大家早安。 我將在準備好的演講中簡要提及這一點，但對於綠地鋁項目，是否還需要增加其他關鍵人員？ 您能否更廣泛地談談一般勞動力市場以及您如何看待滿足那裡的需求的過程？

Certainly, I think the there are no key folks all talent needed from us from a skill set or experience that we are pretty pretty well built out. But we will always always talk to anyone who wants to join us for the management team I think is absolutely solid. It's a blend combination of seasoned aluminum folks manages leaders alongside our SDI proven leaders. And so you get the blend of aluminum experience and knowledge base with the cultural performance driven sort of passion that we have within Steel Dynamics.

當然，我認為我們所需要的關鍵人才並不都是來自於我們已經相當精進的技能或經驗。 但我們總是會與任何想加入我們的管理團隊的人交談，我認為這是絕對可靠的。 這是經驗豐富的鋁業人員管理領導者與我們久經考驗的 SDI 領導者的混合體。 因此，您可以將鋁材經驗和知識基礎與我們在 Steel Dynamics 中所擁有的文化表演驅動的熱情相結合。

So I mean, I'm incredibly incredibly impressed by the team. It's actually a much better location finding talent is not an easy thing to note is that compared to the challenges that we experienced in centrum, I think is a much, much better location. Fortunately, we have one of our large flat roll steel facilities right across the road. That's allowing, again, a transfer people it at all levels and they can transfer over without moving their families and dislocating their lives. And so that facility is a huge benefit for us as well. So we're excited by the team there.

所以我的意思是，我對這個團隊印象非常深刻。 實際上，這是一個更好的位置，尋找人才並不是一件容易的事情，值得注意的是，與我們在 Centrum 經歷的挑戰相比，我認為這是一個更好的位置。 幸運的是，我們的大型扁鋼工廠之一就在馬路對面。 這再次允許各級人員進行調動，他們可以在不搬家和擾亂生活的情況下進行調動。 因此，該設施對我們來說也是一個巨大的優勢。所以我們對那裡的團隊感到興奮。

Excellent affected one last one in steel fabrication with more recent sales that you've had that have been added in the backlog over the past month or two. Are you seeing any pockets of pricing strength relative to where you had been?

優秀影響了鋼鐵製造的最後一個，最近的銷售在過去一兩個月內已添加到積壓訂單中。 與您之前的情況相比，您是否看到了一些定價優勢？

Martin, I would suggest that and heading into the fourth quarter, we're going to see that normal seasonality and that you typically see in anything that's tied to construction. But as we look at 2025, we definitely think that there's opportunity for gen. We've talked about interest rate changes and additional demand coming from public funding, et cetera. So we're feeling really good with that study aspect of what we've seen in the last six to nine months. And now I will just get you that the fourth quarter seasonality and then head towards what we think is going to be a really robust 2025.

馬丁，我建議進入第四季度，我們將看到正常的季節性，並且您通常會在與建築相關的任何事物中看到這種情況。 但當我們展望 2025 年時，我們絕對認為一代人有機會。 我們討論了利率變動和來自公共資金的額外需求等。 因此，我們對過去六到九個月所看到的研究方面感覺非常好。 現在我將向您介紹第四季度的季節性情況，然後展望我們認為將非常強勁的 2025 年。

Okay. Appreciate that. Congratulations, unresolved. Thank you.

好的。 很欣賞這一點。 恭喜，未解決。 謝謝。

Your next question is coming from Acadia Gentech with BMO Capital Markets.

您的下一個問題來自 Acadia Gentech 和 BMO 資本市場。

Hi. Thank you for taking my question. Right now, 80% of your businesses contractually based, does that change you with further Sinton ramp-up? Or could we can continue to see about 80% contractual.

你好。 感謝您回答我的問題。 目前，你們 80% 的業務都是以合約為基礎的，這會隨著 Sinton 的進一步發展而改變嗎？ 或者我們能否繼續看到約 80% 的合約。

Katja, this Barry Schneider contractual relationships are a big part of our value added supply chain solutions. So as we've increased our paint lines that are coating lines, it keeps that contract concentration about in that 70% to 80% range. We anticipated this growth with our new line. So I would see as being in the same kind of market, perhaps a little bit less in the future once we get the established customer bases and work out the supply chains in each region. Thank you.

Katja，這個 Barry Schneider 合約關係是我們增值供應鏈解決方案的重要組成部分。 因此，當我們增加塗裝線時，合約濃度就保持在 70% 到 80% 的範圍內。 我們預計新產品線會出現這種成長。 因此，我認為，一旦我們建立了既定的客戶群並製定了每個地區的供應鏈，我們就會處於同一類型的市場中，也許未來會少一些。 謝謝。

Maybe just I guess just to clarify, I think you recognize that the 80% contractual is on the flat roll side of business. We obviously have a whole bunch of other stuff being a very diversified provider, which is more in this kind of the small spot day-to-day.

也許只是我想澄清一下，我認為您認識到 80% 的合約是在業務的平卷方面。 顯然，我們有很多其他的東西，是一個非常多元化的供應商，這更多是在這種小地方的日常。

So I guess maybe just one quick one. A very I think you mentioned that segment and had a bit of a challenge starting up after maintenance, if I'm not mistaken. What was the issue there?

所以我想也許只是一個快速的。 如果我沒記錯的話，我認為您提到了該部分，並且在維護後啟動時遇到了一些挑戰。 那裡出了什麼問題？

I just -- whatever we work with high voltage systems, you have kind of a normal, making sure everything safe as you ramp up. So having the teams, the outage was about four days. It was just a little bit slow to get back up to regular running rates. So that unheard of in our industry, it's just worth noting because we did so much work. The team was really, really resolve some of those high power problems we've had from the beginning, and we safely were able to do that. So all in all, I consider that a good outage team did very well, but it wasn't it wasn't like turning a light on and off, it's just a little bit more complicated with that high-voltage.

我只是——無論我們如何使用高壓系統，你都有一種常態，確保在你加速時一切都是安全的。 因此，有了團隊，停電大約持續了四天。 只是恢復到正常運轉速度有點慢。 這在我們的行業中是聞所未聞的，但值得注意的是，因為我們做了很多工作。 團隊確實、確實解決了我們從一開始就遇到的一些高功率問題，而且我們能夠安全地做到這一點。 總而言之，我認為一個好的停電團隊做得很好，但事實並非如此，它不像打開和關閉燈那樣，只是高壓的情況稍微複雜一些。

Perfect. Thank you.

完美的。 謝謝。

Your next question is coming from Tristan Gerra with BNP Paribas.

您的下一個問題來自法國巴黎銀行的 Tristan Gerra。

Hi. Thank you for taking my question. First one is just on the increase in spreads in metal spread for you long portfolio, where do you see more strength than maybe you can discuss a little bit differentiated outlook for either the structural or shape or array of whatever drove that strength? That would be appreciated to get your perspective on our on your own product business.

你好。 感謝您回答我的問題。 第一個是關於您的長期投資組合的金屬價差的增加，您在哪裡看到了比您可以討論推動這種實力的結構、形狀或陣列的一點差異化前景更多的力量？ 如果您能了解我們對您自己的產品業務的看法，我們將不勝感激。

Yeah. This is Barry the scrap that we're able to move to our mills from the metals recycling platform is really beneficial because we we find the best value and the timeliness of our supply chain allows us to really optimize that. So having the right material at the right time is assay central for that business to really to get the value from it.

是的。這是巴里，我們能夠從金屬回收平台轉移到工廠的廢料確實非常有益，因為我們找到了最佳價值，而且供應鏈的及時性使我們能夠真正優化這一點。 因此，在正確的時間擁有正確的材料對於企業真正從中獲得價值至關重要。

As we look specifically at Long Products are structural and heavy section mill at Columbia City is not just a heavy section. Those also railroad of the largest railroad producers in the country. So we have a nice balance of where we tend to move our products. So as the markets tend to change over time, we're always able to optimize into the right product mix for the opportunity and make sure that we keep our regular customers invested and they understand what we're doing.

當我們特別關注長材產品時，哥倫比亞市的結構型材和重型型材軋鋼機不僅僅是重型型材。 這些也是該國最大的鐵路生產商的鐵路。 因此，我們在產品轉移地點方面取得了很好的平衡。 因此，隨著市場隨著時間的推移而變化，我們始終能夠針對機會優化正確的產品組合，並確保我們讓老客戶保持投資，讓他們了解我們在做什麼。

So having that diversification of product across all of our business is essential. What we're looking at o ur moderate in Q2 quarter with the normal flow of business. So long products remains very resilient. We're excited on the opportunities that we see coming, particularly with the investment and reshoring opportunities.

因此，在我們所有的業務中實現產品多樣化至關重要。 在業務正常流動的情況下，我們在第二季的情況是溫和的。 因此，長期產品仍具有很強的彈性。 我們對即將到來的機會感到興奮，特別是投資和回流機會。

All right. That's helpful. And maybe a follow-up just on the hot-dip galvanized trade case you mentioned, and then the potential impact of that. I understand Vietnam being a part of the investigation, but I think there's been a push to include a certain countries like Canada and also Mexico. And given your exposure to Mexico, can you explain a little bit the rational behind including those countries t he investigation.

好的。 這很有幫助。 也許是您提到的熱浸鍍鋅貿易案例的後續行動，以及其潛在影響。 據我了解，越南正在參與調查，但我認為有人正在推動將加拿大和墨西哥等某些國家納入調查範圍。 鑑於您在墨西哥的經歷，您能否解釋一下將這些國家納入調查背後的理由。

Yes, sir. there was actually 10 countries involved in the investigation and each of those countries, there is very demonstrative increases in the actual tons that have surged through those various countries into American markets. And the necessity of including Canada and Mexico was because of the volume of tons that are coming through those countries. The USMCA is a great side treaties that we all enjoy. We do good business based on that in that treat in that agreement. There is provisions to do just what we what we did, which is engage the ITC for anti-dumping and countervailing duty cases. The numbers are staggering.

是的，先生。實際上有 10 個國家參與了調查，並且每個國家透過這些國家進入美國市場的實際噸數都有明顯的增加。 將加拿大和墨西哥納入其中的必要性是因為經過這些國家的貨物量很大。 《美墨加協定》是我們大家都喜歡的一項偉大的附帶條約。 我們根據該協議中的待遇開展良好的業務。 有規定要做我們所做的事情，就是讓國際貿易委員會處理反傾銷和反補貼稅案件。 數字是驚人的。

And in many cases, these tons are not melted report in those countries, but they're flowing from some of the other countries listed. So as there's problems in Asia, that puts pressure on that part of the world and they all want to flow to our shores. So this mechanism is expensive and lengthy, but it's necessary to make sure that the competitive markets that we have in the United States are truly fair trade.

在許多情況下，這些噸報告並未在這些國家/地區熔化，而是從列出的其他一些國家流出。 因此，由於亞洲存在問題，這給世界的那個地區帶來了壓力，他們都想湧向我們的海岸。 所以這個機制是昂貴且漫長的，但有必要確保我們在美國擁有的競爭市場是真正公平的貿易。

So I think the process will render out what the appropriate duties are in each country. And if they're truly was a less damage from some of those countries, the final tariff amounts will reflect that. So it is something that was absolutely necessary. And as we watch, we don't ask for handouts or protection, we just asked for a fair field to play the game on. And this is all part of that. That process.

因此，我認為這個過程將明確每個國家的適當職責。 如果其中一些國家確實造成了較小的損害，那麼最終的關稅金額將反映這一點。 所以這是絕對必要的。 當我們觀看時，我們不要求施捨或保護，我們只是要求一個公平的場地來進行比賽。 這就是其中的一部分。 那個過程。

All right. Thank you very much.

好的。 非常感謝。

Your next question is coming from Carlos De Alba with Morgan Stanley. Please pose your question. Your line is live.

你的下一個問題來自摩根士丹利的卡洛斯·德阿爾巴。 請提出你的問題。 您的線路已上線。

Yes, thank you very much. Maybe continuing with the conversation on their own the anti-dumping case payments somewhat related, the spread between galvanized steel and Corus coil has been the price. You have low levels, probably not economical and even the anti-dumping investigation doesn't go your way and or even if it does, I see a big improvement, if it does, what what is the dynamics as a leader in this sector are prepared to do to maybe enhance those spreads.

是的，非常感謝。 也許繼續與自己的對話與反傾銷案付款有些關係，鍍鋅鋼和Corus卷材之間的價差一直是價格。 你的水平很低，可能不經濟，甚至反傾銷調查也不如你所願，或者即使是這樣，我也看到了很大的進步，如果是這樣，作為這個行業的領導者，動態是什麼？的可能是擴大這些利差。

Carlos, this is Barry again. We do anticipate a great success with these trade cases, especially with certain certain of these countries that were the most egregious vendors. But we routinely evaluate how we move our flat rolled products through our process lines. So we routinely move hot, roll all the way through the process in the game, urbanize and painted. We make those decisions about where the margins are. So we've been having very good success in dealing with these pressures over the last 12 months.

卡洛斯，這又是巴里。 我們確實預計這些貿易案例會取得巨大成功，特別是與其中某些最惡劣的供應商國家。 但我們會定期評估如何在生產線中移動扁材。 因此，我們通常會在遊戲過程中進行熱火朝天的行動、都市化和繪畫。 我們做出關於利潤率的決定。 因此，過去 12 個月我們在應對這些壓力方面取得了非常好的成功。

And you can see from our earnings, it has to do with we have so much diversity in our product mix that we respond to where we can go and be safe. So I believe the ITC will come back favorable, particularly as some of the more egregious vendors. And that does create an opportunity for us to go back to do or more product mix. That is where perhaps friendly to those times.

你可以從我們的收益中看到，這與我們的產品組合如此多樣化有關，我們對我們可以去的地方和安全的地方做出反應。 因此，我相信 ITC 將會給予有利的回報，特別是對於一些較惡劣的供應商。 這確實為我們創造了一個回去做更多產品組合的機會。 那也許就是對那個時代友善的地方。

Thanks, Barry --

謝謝，巴里——

If I may squeeze another one, if I could just add them. You've heard us say before we don't manage to hope nor do we manage and make strategic decisions based on. We think trade or policy of any nature is going to go one way or the other. You you have to take control of your own destiny. And I think the teams year over year, I do have absolutely phenomenal job further diversifying our product mix. I think I don't know what the recent numbers, 65%, 70% of our flat roll product mix is 65% is value add. And when we say value add, I'm talking about really evaluate when you get into prepayment and you get into the coating developments that the teams have achieved.

如果我可以再擠一個，如果我可以添加它們。 您曾經聽過我們說過，我們無法希望，也無法根據希望進行管理和做出策略決策。 我們認為任何性質的貿易或政策都會朝著這樣或那樣的方向發展。 你必須掌控自己的命運。 我認為這些團隊年復一年，我確實做了非常出色的工作，進一步使我們的產品組合多樣化。 我想我不知道最近的數字是多少，我們的平卷產品組合的 65%、70% 是增值的，65% 是增值的。 當我們說增值時，我指的是當您進入預付款以及團隊已實現的塗層開發時進行真正的評估。

And most recent only that they've got into this digital prints that literally is absolutely phenomenal, would grains for the Guard or folks and architectural, you just have to have innovation and creativity continuing to drive up the product mix. So now that no matter what happens, we will succeed and no matter where the trade goes t o be honest.

最近，他們已經進入了這種數位印刷品，這絕對是驚人的，對於衛兵或民間和建築來說，你只需要擁有創新和創造力，繼續推動產品組合。 所以現在無論發生什麼，我們都會成功，無論貿易去往何處，都要誠實。

Mark and Barry talked about, but without saying the exact words, the supply chain differentiation that we have with all the products that you just spoke about. And so that's the key for us.

馬克和巴里談到了我們與您剛才談到的所有產品的供應鏈差異化，但沒有說出確切的字詞。 這對我們來說是關鍵。

All right, thanks. And just maybe if I may squeeze another one on the steel fabrication business. And any further details on pricing, I think, Barry, I mean, I'm amazed these, but I think Barry talked about a stable pricing from from from current levels from from what you saw in the third quarter. And but any for the call over to their or volumes, how do you expect that going forward?

好的，謝謝。 也許我可以在鋼鐵製造業務上再擠一擠。 關於定價的任何進一步細節，我認為巴里，我的意思是，我對這些感到驚訝，但我認為巴里談到了從您在第三季度看到的當前水平開始的穩定定價。 但是對於他們或卷的呼籲，您對未來有何期望？

Carlos, I think the question, but again, we're pretty consistently won't talk about pricing and commercial things as it relates to that. The commercial team, what they would be outside my dollar may be ready to do bad things. And so we can't do that from a volume perspective. We do expect regular seasonality here and there fourth quarter as it relates to the construction related businesses, which steel fabrication is one that we do expect to see a much stronger volumes next year, which could support should support pricing as well.

卡洛斯，我認為這是一個問題，但我們一貫不會談論與此相關的定價和商業問題。 商業團隊，除了我的錢之外，他們可能已經準備好要做壞事了。 因此，從數量的角度來看，我們無法做到這一點。 我們確實預計第四季度會出現定期季節性，因為它與建築相關業務有關，我們確實預計明年鋼鐵製造業務的銷售量將大幅成長，這可能會支撐定價。

Thanks, Theresa.

謝謝，特蕾莎。

Your next question is coming from Lawson Winder with Bank of America. Please pose your question. Your line is live.

您的下一個問題來自美國銀行的勞森溫德。 請提出你的問題。 您的線路已上線。

Fantastic. Thank you, operator, and good morning, Mark through some very nice to hear from you, Bob, and thanks for the update today. I'm very maybe I think this question would be best directed to you. Could you just walk us through the path from 72% utilization at since September to your optimal utilization? What is that all small fully ramped utilization? And what are the rate remaining ball of action steps to resolve that? And and if possible highlighted to you that number? Thanks.

極好的。 謝謝你，接線員，早上好，馬克，很高興收到你的來信，鮑勃，謝謝你今天的更新。 我很可能認為這個問題最適合問你。 您能否向我們介紹一下從 9 月以來的 72% 利用率到最佳利用率的過程？ 什麼是所有小規模全面提升利用率？ 解決這個問題的剩餘行動步驟是多少？ 如果可能的話，向您強調這個數字？謝謝。

Yes, Lawson traded. I've tried to articulate why we have confidence in what this team is doing. And the first major thing is reducing the unplanned downtime. So when when things happen, as the team size not only develop themselves as teammates, but also as competency develops, they're able to address issues as they occur. So we've been making significant strides in reducing the unplanned downtime necessary to make that happen is improving the reliability of the equipment.

是的，勞森交易了。 我試著闡明為什麼我們對這個團隊正在做的事情充滿信心。 第一件大事是減少非計劃性停機時間。 因此，當事情發生時，隨著團隊規模不僅作為隊友發展，而且隨著能力的發展，他們能夠在問題發生時解決問題。 因此，我們在減少非計劃性停機方面取得了重大進展，而實現這一目標所需的就是提高設備的可靠性。

The plant you wait made though our flat-rolled steel mills are actually coupled units where we go from the furnished to the hot rolling mill has one coupled unit. And to make that happen as various parts of the system have a normal issues, it can impact the other units. So what we're seeing now and we've seen seen days we've seen weeks now, we've seen months of continuous reduction of unplanned downtime, better reliability of the equipment. And also just as important, making sure that all the products that are actually being produced are able to get to higher value destinations through the mill, whether it's selling it as hot-rolled cold-rolled or coated products.

您等待的工廠雖然我們的扁鋼廠實際上是耦合裝置，但我們從精軋廠到熱軋廠都有一個耦合裝置。 為了實現這一點，當系統的各個部分出現正常問題時，它可能會影響其他單元。 因此，我們現在看到的是，我們已經看到了幾天，我們已經看到了幾週，我們已經看到了計劃外停機時間連續減少了幾個月，設備的可靠性得到了提高。 同樣重要的是，確保實際生產的所有產品都能透過工廠到達更高價值的目的地，無論是作為熱軋、冷軋或塗層產品銷售。

So as we see each of the units of the mill respond, we see the uptown uptime increasing. We see the yields getting better and better. And as we start controlling the cost situation, we see a very good path towards this facility running well. We have had weeks that we're nearly at capacity and that again is more reasons. We have confidence in what we see. So we see kind of the watershed moment happening under our feet. We anticipate fourth quarter to finish strong high and it really sets the stage for 2025 to really allow this facility to show the stakeholders what they've been doing and how well they've been earning it down there. Hope that helps.

因此，當我們看到工廠的每個單位都做出回應時，我們就會看到住宅區的正常運作時間正在增加。 我們看到產量越來越好。 當我們開始控製成本情況時，我們看到了一條通往該設施運作良好的良好途徑。 我們已經有幾週的時間接近滿載，這又是更多的原因。 我們對我們所看到的充滿信心。 所以我們看到了我們腳下正在發生的分水嶺時刻。 我們預計第四季度將實現強勁增長，這確實為 2025 年奠定了基礎，讓該設施能夠向利益相關者展示他們一直在做什麼以及他們在那裡獲得了多少收益。 希望有幫助。

Yes. The colors is definitely helpful. And then maybe if I could just in follow-up to that, I think that's probably directed toward Teresa mean when you think of centers now, okay, kind of being there are close to being where you need to be and you look at the same yet the dividend consideration for for February, could we anticipate that that dividend increase in February, they might be more material than we've seen more recently that held the aluminum Dynetics as startup factor into that decision?

是的。顏色絕對有幫助。 然後也許如果我可以跟進的話，我認為這可能是針對特蕾莎的意思，當你現在想到中心時，好吧，那裡接近你需要去的地方，你看同樣的地方然而，考慮到2 月份的股息，我們是否可以預期2 月份的股息增加，它們可能比我們最近看到的更重要，鋁Dynetics 是該決定的啟動因素？

So that is in very good question, Lawson. It is a tricky question. So and the Board is a to determine what the dividend will be in. You're correct. We like to keep a positive dividend profile and it generally happens in the first quarter of each here. And I wouldn't I would anticipate the same absent any extraneous is occurring this year as well. And we do expect to have certainly a significant EBITDA contributor next year, which it hasn't been up to this point. So that's a significant change in earnings profile that being said, and we'd like to see how is that and operates in 2025, I would expect to see a positive dividend move.

所以這是一個很好的問題，勞森。這是一個棘手的問題。 因此，董事會將決定股利的內容。 我們希望保持積極的股息狀況，這通常發生在每個季度的第一季。 如果今年沒有發生任何無關的事情，我不會預期同樣的情況。 我們確實預計明年將有一個重要的 EBITDA 貢獻者，但到目前為止還沒有。 因此，所說的獲利狀況發生了重大變化，我們希望了解 2025 年的情況和運作情況，我預計會看到積極的股息變動。

But I can't really speak to the magnitude of that at this point in time. As it relates to the aluminum assets starting in 2025 via very excited about that. I mentioned in my prepared notes, we do expect those investments to be EBITDA positive in the second half of 2025, which is pretty extraordinary. So we're really starting to see that benefit 2026. So I would think that would generally be kind of a timeframe to think about how that contributes statistical cash flow and passionate possible dividend news.

但目前我還不能真正說出其嚴重性。 因為它與 2025 年開始的鋁資產有關，對此我們非常興奮。 我在準備好的筆記中提到，我們確實預計這些投資將在 2025 年下半年實現 EBITDA 為正值，這是非常了不起的。 所以我們真的開始看到 2026 年的好處。

Great. Thank you all very much.

偉大的。 非常感謝大家。

Your next question is coming from Timna Tanners with Wolfe Research. Your line is live.

您的下一個問題來自沃爾夫研究公司的 Timna Tanners。 您的線路已上線。

Yes, good morning. I wanted to probe a bit more than status as the value add line rents that are ramping up the four line between pay and coded golf and what I'm just looking at the volumes, it wasn't clear to me like what utilization you have, those lines that and what we might have yet to see play out as they ramp up?

是的，早安。 我想探究的不僅僅是地位，因為增值線路租金正在提高付費和編碼高爾夫之間的四線，而我只是在查看數量，我不清楚您的利用率如何，那些我們可能還沒有看到的線路以及隨著它們的增加而發揮的作用？

Tim, it is very at the operating at somewhere around 65% to 75%. As we discussed with the trade cases, we've seen some pressure in certain coated products, particularly Galvalume. So we are trying to make sure we're efficiently running those lines and making sure we don't waste money by operating at levels that perhaps we could do with the existing lines. So a when we look at is the ability to really allow each line to do the proper product mix to be very efficient and to be very good yields. So we're really excited with what we've seen.

提姆，它的運作狀況非常好，大約在 65% 到 75% 左右。 正如我們在貿易案例中討論的那樣，我們看到某些塗層產品面臨一些壓力，特別是鍍鋁鋅產品。 因此，我們正在努力確保我們有效地運營這些線路，並確保我們不會因為現有線路的運營水平而浪費金錢。 因此，我們關注的是是否能夠真正讓每條生產線進行適當的產品組合，從而非常有效率且產量非常高。 所以我們對所看到的感到非常興奮。

The Terra Haute operations are definitely improving the opportunity for that facility to reach more markets, diversifying that product mix there by adding a second coating opportunity with Galvalume and with the prepaid opportunity has really opened up relationships with new customers as well as existing customers who needed those products in that region. And certain the additional lines really allow us to to have a more efficient operation between our galvanized coatings and our balloon coatings.

Terra Haute 業務無疑正在改善該工廠進入更多市場的機會，透過與Galvalume 一起增加第二次塗層機會，使產品組合多樣化，並且透過預付費機會，真正建立了與新客戶以及需要的現有客戶的關係。 某些額外的生產線確實使我們能夠在鍍鋅塗層和氣球塗層之間進行更有效的操作。

So might be a bit technical, but we're really excited otherwise perform the quality itself has been a very good and that is difficult with these type products. These are a lot of this new capacity is prepaid markets, which have very demanding customer base. So we've been really excited to see how the teams have responded. And the sales team continues to bring new opportunities to the Millstone.

所以可能有點技術性，但我們真的很興奮，否則品質本身就非常好，而這對這些類型的產品來說是很困難的。 這些新容量中有很多是預付費市場，它們擁有非常苛刻的客戶群。 因此，我們非常高興看到各團隊的反應。而銷售團隊也不斷為磨石帶來新的機會。

As it relates to their contribution to earnings, I would say that that really hasn't been significantly impactful at this point. So as a reminder, the former lines were about a $600 million investment. And generally on the patent galvanizing line for us, given our supply chain differentiation have a payback period any where between 2 and 3 or 2.5 years. So pretty significant, you're going to start to really see their impact in 2025. I think as everything gets ramped up.

由於這與他們對收入的貢獻有關，我想說，目前這確實沒有產生重大影響。 提醒一下，以前的生產線投資額約為 6 億美元。 一般來說，在我們的專利鍍鋅生產線上，鑑於我們的供應鏈差異化，投資回收期在 2 至 3 或 2.5 年之間。 非常重要的是，您將在 2025 年開始真正看到它們的影響。

And just one last follow-up call symptom, obviously, the volume throughput on those lines, is that a little inhibited right now because of the hot side not being at full capacity? So as the or as we increase the throughput on the outside the volumes, really those two lines, then we'll decrease in tandem.

最後一個後續呼叫症狀，顯然，這些線路上的容量吞吐量，現在是否因為熱端未滿載而受到一點抑制？ 因此，當我們增加磁碟區外部的吞吐量（實際上是這兩條線）時，我們將同時減少。

Okay. That's really helpful. For modeling purposes, if we looked at that was 1.3 plus million tons in the quarter of galvanized that represents about are dominating coated. That represents about 65% of the new capacity ramping up. So we have yet to see that remaining third or so flow through. And we would expect that conditional to and that impacts coming off of that. Is that fair?

好的。 這真的很有幫助。 出於建模目的，如果我們觀察一下，鍍鋅季度的產量為 1.3 多萬噸，這代表著塗層占主導地位。 這約佔新增產能的 65%。 所以我們還沒看到剩下的三分之一左右的流量通過。 我們預計這是有條件的，並且會產生影響。 這樣公平嗎？

So in that coded number, and it's not just airlines that you're seeing and I know it wouldn't it wouldn't show like shipments of that at that rate because you also have our and our United Steel Supply and you have other processing facility is rolling through that and that aren't included in a lot of that. The benefit of the additional volumes in the third quarter actually came around to different avenues. So there's I think I would suggest there's more volume that still the benefits, not just the third.

因此，在該編碼數字中，您看到的不僅僅是航空公司，我知道它不會顯示像這樣的運輸量，因為您還有我們和我們的聯合鋼鐵供應公司，並且您還有其他處理設施正在滾動進行，但並未包含在其中許多內容中。 第三季銷售增加的好處其實體現在不同的方面。 因此，我認為我建議增加數量仍然有好處，而不僅僅是第三個。

Okay, thanks. And maybe I've outlined proceeded.

好的，謝謝。 也許我已經概述了繼續的過程。

Your next question is coming from Bill Peterson with JPMorgan. Please pose your question. Your line is live.

您的下一個問題來自摩根大通的比爾彼得森。 請提出你的問題。 您的線路已上線。

Yes, hi. Good morning and thanks for taking the questions. Maybe maybe following up some of the questions around utilization and also running the last question too. Can you help us understand if since profitability meaningfully improved in the third quarter? I think it was around breakeven in the second quarter and this number for new co lives. Are these profitable yet? Yes, certainly obviously related to some of the trade questions you're answering earlier, but if they're not, when do you expect them to be profitable?

是的，嗨。 早上好，感謝您提出問題。 也許可以跟進一些有關利用率的問題，也可以運行最後一個問題。您能否幫助我們了解第三季獲利能力是否顯著改善？ 我認為第二季的收支平衡左右，而這個數字對於新的共同生活來說。 這些還獲利嗎？ 是的，當然顯然與您之前回答的一些貿易問題有關，但如果不是，您預計它們什麼時候能夠盈利？

So from perspective of Sinton and no in the third quarter because we had additional outage time that Barry actually mentioned and and because we had additional maintenance costs related to that and Sinton wasn't EBITDA positive in the third quarter. But we have full expectations that it will be in the fourth quarter and certainly next year. And as it relates to the line there really integral into the operations of the steel mills themselves. So to answer that question is a little bit difficult.

因此，從Sinton 的角度來看，第三季度沒有，因為我們有巴里實際上提到的額外停機時間，而且因為我們有與之相關的額外維護成本，而Sinton 在第三季度的EBITDA 並不為正。 但我們滿懷期望，這將在第四季度，當然是明年。 由於它與生產線相關，因此確實融入了鋼廠本身的運作中。 所以回答這個問題有點困難。

Again, I would tell you, as Mark mentioned earlier, and Barry and now I will for their time and we expect the value add lines to really benefit 2025. So as you think about your modeling and I would I would add that as an additional benefit for us, that's outside of just normal market dynamics.

再次，我會告訴你，正如馬克之前提到的，巴里和現在我會花時間，我們預計增值線將真正有益於2025 年。額外的這對我們來說是有利的，這超出了正常的市場動態。

Great. Thanks for that. And on sort of a lower carbon items and thanks for providing the color there. It looks like on the bio carbon, particularly, it looks like it's going to be a few quarters before operation, but also needs to be done before operational start. And then I guess, when do you plan to introduce internally produced by our carbon and your steel production flows? Do you have guys are I mean, is there a need for customer commitments for the products with this PyroCarbon? Or do you expect a premium for products coming using that product?

偉大的。 謝謝你。還有一些低碳物品，感謝您提供顏色。 看起來特別是在生物碳上，看起來要在營運前幾季完成，但也需要在營運開始之前完成。 然後我想，你們打算什麼時候引進我們碳素和你們鋼鐵生產流程的內部生產？ 我的意思是，你們是否需要對使用 PyroCarbon 的產品做出客戶承諾？ 或者您預計使用該產品的產品會獲得溢價嗎？

That's a good question. I would hope to have a premium that there is laughing at me. And so the bio current Italy, the team's doing a great job and it's still under construction. And again, everything is pointing toward as first quarter 2025 start, and we will have that product. It's already been fully tested and at each of the steel mills that will be receiving it. We don't have enough product design despite of the carbon needs at our steel mills, but a majority of it. So we'll start using that and easing that into the and product mix for the steel mills as we enter the first half of next year.

這是個好問題。 我希望能得到有人嘲笑我的溢價。 所以目前的義大利隊，球隊做得很好，而且還在建設中。 再說一遍，一切都指向 2025 年第一季開始，我們將擁有該產品。 它已經在每家將要接收它的鋼廠進行了全面測試。 儘管我們的鋼廠有碳需求，但我們的產品設計還不夠，但大部分都是這樣。 因此，當我們進入明年上半年時，我們將開始使用它，並將其簡化到鋼廠的產品組合中。

As far as whether or not there's premium charge for that product, that's just going to be part of our DRP innovation journey. So it's going to be used as a matter of whether it's not for a specific customer necessarily. He'll be just part of the normal operating on mechanisms for each of the steel mills as a different lower-carbon raw materials that substituting for anthracite.

至於該產品是否收取額外費用，這只是我們 DRP 創新之旅的一部分。 因此，它將被用作是否不一定針對特定客戶的問題。 他將成為每個鋼廠正常運作機制的一部分，作為替代無菸煤的不同低碳原料。

Yeah. And Theresa, I would just add and exit the we don't need customer approvals for this product. It's so early in the process that that the use of what kind of carbon doesn't factor into what the final steel product will actually how it will perform. And I would think of it is not a binary decision or is one of the other. So the path towards introducing this to the mills will really flow based on how the startup goes in the proximity in other teams respond to it. The trials that have been done have been very successful through the AMI and a pilot facility. So we have a good working knowledge going into this. And the melt shop teams are regularly meeting with the bio carbon team, and we're excited about it. It's a beautiful plant down in Mississippi.

是的。特蕾莎，我只想添加並退出我們不需要客戶批准該產品。 由於該過程仍處於早期階段，因此使用何種碳並不能影響最終鋼鐵產品的實際性能。 我認為這不是一個二元決定，或是其中之一。 因此，將其引入工廠的路徑實際上將取決於新創公司在其他團隊附近的反應方式。 透過 AMI 和試點設施進行的試驗非常成功。 所以我們對此有很好的工作知識。 熔煉車間團隊定期與生物碳團隊會面，我們對此感到興奮。 這是密西西比州的一種美麗的植物。

Thanks, Barry and Theresa. Appreciate it.

謝謝，巴里和特蕾莎。 欣賞它。

Your next question is coming from Andrew Jones with UBS. Please pose your question. Your line is live.

您的下一個問題來自瑞銀集團的安德魯瓊斯。 請提出你的問題。 您的線路已上線。

Hi, Tim, thanks for the opportunity at just on the market between '25 and then we have the comments we've made on the positive outlook potential for demand to become. But just in a more pessimistic scenario where that doesn't happen, I think we've had two styles a couple of through add.

嗨，蒂姆，感謝您在 25 年期間提供的市場機會，然後我們就需求的積極前景潛力發表了評論。 但只是在更悲觀的情況下，這種情況不會發生，我認為我們透過添加有兩種風格。

Maybe you don't think I mean, what would you consider doing within your portfolio to kind of do your best to help to balance the market? May? Would it change your production plans in any way? Or would you would you be an active participant in trying to, but the market or do you see as I was just a low cost producer and you can essentially take share and they expect us to potentially drawn out at the higher end of the art, do you look at 2025 more pessimistic scenario?

也許您不認為我的意思是，您會考慮在您的投資組合中做什麼來盡最大努力幫助平衡市場？ 可能？ 它會以任何方式改變你的生產計劃嗎？ 或者你會積極參與嘗試，但市場還是認為我只是一個低成本製作人，你基本上可以分享份額，他們希望我們有可能在藝術的高端領域有所發展，您認為2025 年的情況會更悲觀嗎？

Firstly, we're not pessimistic were very, very constructive on the future market. And the 2025. There are too many things the that what will drive that our customer base in general, our customer base is very, very positive f or '25. You should have a lower interest rate environment that will kick-start nonresidential and residential construction. New millennium right now, the order book, the order, the engineering, the whole flow of things strong. It just needs a slightly lower interest rate environment for those developers to push bonds and move forward.

首先，我們並不悲觀，對未來市場非常非常有建設性。 到了 2025 年，有太多的事情會推動我們的客戶群整體發展，我們的客戶群對 25 年非常非常積極。 您應該擁有一個較低的利率環境，以啟動非住宅和住宅建設。現在是新千年，訂單、訂單、工程、整個事物流程都很強大。 這些開發商只需要一個略低的利率環境來推動債券並向前發展。

So again, just want to emphasize, we're constructive on the marketplace just in general and is not a matter of 2025 or it's just a matter of any any market cycle we will produce to what our customer base requires quite simply. Okay. But I'm sorry if I can just the economics. We recognize the markets are cyclical in our business. So over the over the years since the very beginning because I do have markets that it allows you huge, huge, huge flexibility as markets ebb and flow a very, very strong part of our strategy is always also been the pull-through volume.

再次強調，我們對整個市場持建設性態度，這不是 2025 年的問題，也不是我們將根據客戶群的需求生產的任何市場週期的問題。好的。 但如果我只能談經濟的話，我很抱歉。 我們認識到我們業務中的市場是週期性的。 因此，從一開始以來的這些年來，因為我確實擁有市場，所以隨著市場的漲落，它可以讓你擁有巨大、巨大、巨大的靈活性，我們策略中非常非常重要的一部分始終是拉動交易量。

So if you look today, New Millennium, they consume about 600,000 tons, I think or thereabouts last year, maybe a little bit more of the products that we make. The conversion facilities at Heartland. They've got a roughly 800,000 tests. They had 800,000 ton capability. So in all internal sort of substrate requirements as well over 2 million tons.

因此，如果你看看今天，新千年，他們消耗了大約 60 萬噸，我想去年大約是 60 萬噸，可能比我們生產的產品多一點。 Heartland 的改建設施。 他們進行了大約 80 萬次測試。 他們有80萬噸的能力。 因此，所有內部基質需求量也超過200萬噸。

We supply some of that internally, but Barry and his team also procure is a lot in the marketplace. So we're actually one of the strangely, a lot of people don't recognize that. We're one of the largest buyers of sheet products in the US today that pull-through volume and conflicts.

我們在內部提供其中一些，但巴里和他的團隊也在市場上購買了很多。 所以我們其實是奇怪的人之一，很多人都沒有意識到這一點。 我們是當今美國片材產品的最大買家之一，其拉動了數量和衝突。

So if you look at our utilization rates through cycle, the utilization rates are always superior to any of our peers because of the value add diverse product mix and also the pull through volume. But we have in internally. So even if it does come off a little bit, you will see that we retain our strong cash through-cycle cash generation capability without that.

因此，如果你觀察我們整個週期的利用率，你會發現利用率總是優於我們的任何同行，因為多樣化的產品組合增加了價值，而且銷量也增加了。 但我們內部有。因此，即使它確實有所下降，您也會看到，即使沒有這種情況，我們仍保留了強大的現金循環現金產生能力。

Fair enough. But no major closures of higher cost lines along the lines of any sodas, the action to kind of volumes, especially displacing volumes wells in the portfolio. That's not on the agenda.

很公平。 但沒有像蘇打水那樣大規模關閉成本較高的產品線，對銷售的影響，特別是在投資組合中取代銷售量。 這不在議程上。

But I didn't hear that.

但我沒有聽到。

That's okay. You would say, no.

沒關係。 你會說，不。

No. Okay.

不，好吧。

Next question is coming from John Tumazos with John Tumazos Independent Research. Please pose your question. Your line is live.

下一個問題來自約翰‧圖馬佐斯獨立研究中心的約翰‧圖馬佐斯。 請提出你的問題。 您的線路已上線。

Thank you for taking my question. Looking out a couple years, which sectors do you think are most fertile for the next big investment this year? US aluminum demand is trending up 5%. Steel has been the South in apparent demand five, six years now, lots of companies have built a lot of steel capacity. Could we expect the aluminum or recycling or some other new area because the candidate for the next big project in 2026 or seven or eight?

感謝您回答我的問題。 展望未來幾年，您認為哪些產業最適合今年下一次大規模投資？ 美國鋁需求呈現成長 5% 的趨勢。 南方鋼材的表觀需求已經有五、六年了，現在很多企業都建造了大量的鋼材產能。 我們是否可以期待鋁或回收或其他一些新領域成為 2026 年或七、八年下一個大型專案的候選者？

Firstly, John, we will always take your questions, sir. The as I look across the a portfolio were not strong from on the recycle markets, just in general, whether a regional focus opportunities to vulcanized supply chains, we certainly will anticipate they'll look at that. But I think we have a good recycle sort of platform. You will see us grow here in the to expand our aluminum supply chain.

首先，約翰，我們將永遠回答您的問題，先生。 正如我所看到的，回收市場的投資組合並不強勁，總的來說，無論是區域重點機會還是硫化供應鏈，我們當然會預期他們會考慮這一點。 但我認為我們有一個很好的回收平台。 您將看到我們在這裡不斷成長，擴大我們的鋁供應鏈。

But US, it won't be meaningful dollars to do that. On the steel side, I think you're correct in I don't see the opportunity necessarily for another 3 million tons to you. A greenfield site were not the we're not as you know, we're not in business just to grow big for the sake of it. We want to differentiate our value chain. We want to always always sort of diversify.

但對美國來說，這樣做並沒有什麼意義。 在鋼鐵方面，我認為你是對的，我認為你不一定有機會再生產 300 萬噸。 綠地站點並不像您所知道的那樣，我們開展業務並不是為了發展壯大。 我們希望使我們的價值鏈與眾不同。 我們希望始終保持多元化。

The team has identified several value add opportunities, products that we don't make today. And those are sort of percolating in the background and you'll see over time continuing to deliver those those higher-value products. Aluminum is obviously new to us.

團隊已經確定了一些增值機會，以及我們目前沒有生產的產品。 這些都是在後台滲透的，隨著時間的推移，你會看到繼續提供那些更高價值的產品。 鋁對我們來說顯然是新鮮事。

We want to walk before we run get the first mill up, but there's no doubt that volume growth in aluminum going forward will be a much stronger than the steel and it gives rise to the opportunity there, as you've seen our strategy in the past in and steal the the move down downstream again into value, add products in aluminum, capitalize on our prepayment expertise. I think you will you will see that also.

我們希望在第一家工廠建成之前先走一步，但毫無疑問，未來鋁的產量增長將比鋼鐵強勁得多，這會帶來機會，正如您在過去並竊取下游的價值，添加鋁產品，利用我們的預付款專業知識。我想你也會看到這一點。

Thank you.

謝謝。

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

我們的問答環節到此結束。 我想將電話轉回給米利特先生，請他發表結束語。

Super. Well for any of our employees and our teams out there that are still on the call. Thank you. Thank you. Thank you for what you do, your an incredible, incredible team doing incredible things we can do what we do without a loyal customer base and the pigs. Thank you. Thank you. Thank you for your support over the years. We will continue to try and bring value, create value for you shareholders that. But on the line that bonus, thank you.

極好的。對於我們仍在待命的任何員工和團隊來說，這都是好事。 謝謝。 謝謝。 感謝你們所做的一切，你們是一支令人難以置信的團隊，做了令人難以置信的事情，我們可以在沒有忠實客戶群和豬的情況下完成我們所做的事情。 謝謝。 謝謝。 感謝您多年來的支持。 我們將繼續努力，為各位股東帶來價值、創造價值。 不過就好了，獎金，謝謝。

Those investors that don't own us. All I can say is you should so from SDI and every employee, thank you for all those that support us aggregate. Great day and be safe.

那些不擁有我們的投資者。 我只能說，SDI和每一位員工都應該如此，感謝所有支持我們的人。 美好的一天，注意安全。

Once again. Ladies and gentlemen, that concludes today's conference call. Thank you for your participation and have great day.

再次。 女士們先生們，今天的電話會議到此結束。 感謝您的參與，祝您有美好的一天。