SDI completes buy of New Process stake

Steel Dynamics Inc (SDI) has completed its purchase of a 45% minority equity interest in its single largest flat-roll steel customer, the Fort Wayne, Indiana-based steelmaker announced on Monday January 31.

New Process Steel is a Houston-based metals solutions and distribution supply-chain management company.

This investment – first announced in October 2021 – expands SDI’s focus on value-added manufacturing applications, according to Mark Millett, president and chief executive officer of SDI.

New Process Steel has two manufacturing locations in Mexico and four in the United States, two of which are located at SDI’s Butler and Columbus flat-roll steel divisions. The company employs approximately 950 people.

New Process CEO Richard Fant will independently operate the company as the majority 55% equity holder, making all business decisions in the normal course of operations, including steel purchasing and customer supply decisions, SDI noted.

US steel producers have upped their purchases of downstream businesses in the wake of a historic year that saw major steelmakers establish and break multiple financial records.

Fastmarkets’ daily steel hot-rolled coil index, fob mill US was calculated at $60.67 per hundredweight ($1,213.40 per short ton) on January 31, down by 15.44% from $71.75 per cwt a week earlier and down by 38.25% from an all-time high of $98.25 per cwt reached in September 2021.

To keep up with our daily hot-rolled coil price trends throughout 2022, visit our steel and raw materials page.

What to read next
Following a month-long consultation period which took place between May 26-June 23, Fastmarkets will launch the weekly price assessment to better reflect the Indonesian coke market, given that the country has been a key exporter of coke worldwide since 2023. The price specifications are as follows: MB-COA-0009 Coke 65/63% CSR, fob IndonesiaQuality: 65/63% CSR, 12.5% max Ash, 0.65% max […]
The first publication of the Monterrey HRC and rebar assessments is scheduled for Thursday June 26. The price assessments will be published weekly, every Thursday, 2-3pm (Eastern Time). The specifications are as follows: MB-STE-0934 Steel hot-rolled coil index, delivered Monterrey, Mexico, peso per tonneQuality: SAE 1006-1008 commercial steel and corresponding grades, 48 inches wide, caliber 8-14Quantity: Min 50 […]
The automotive industry's embrace of the pioneering steelmaking technology of tailored welded blanks to make hot stamped door rings has reached a break-out point with annual output volumes expected to double over the next five years
The decarbonization of the steel industry has been widely discussed in Europe over the past few years. But much of the focus has been on blast furnace–basic oxygen furnace (BF-BOF) based mills, given their higher carbon intensity.
Leading European steelmaker ArcelorMittal has scrapped a planned EAF-DRI project in Germany due to the poor economic environment and a “lack of economic viability,” the company said on June 19.
Downward pressure on global steel prices, caused by continued high levels of Chinese steel production at prices below costs, creates incentives than can lead to a rebalancing of global supply and demand and a boost to profitability, World Steel Dynamics chief executive officer Philipp Englin said at the Global Steel Dynamics Forum in New York on Wednesday June 18.