- Steel Dynamics (STLD -4.9%) sinks despite beating Q2 earnings expectations and coming in a penny better than the upper end of its prior EPS guidance of $0.53-$0.57.
- STLD says import levels are down 25% YTD but is seeing activity picking up a bit as prices have risen, although it does not expect imports to return to levels in late 2014-early 2015 which exploded the U.S. market.
- STLD says there has been "steady underlying demand" for flat-rolled steel products and expects improved flat-rolled metal spreads in Q3, but "aside from the construction sector, long product steel demand is generally challenged, and selling values are under pressure from excess domestic production capability."
- STLD also says that while it anticipates metal spread expansion for its long products group in Q3, lower shipments related to customers buying ahead could offset related margin gain.