Steel Dynamics Posts Strong Q1 as Prices Rebound from 2025 Lows

Steel Dynamics, one of the largest steel producers in the United States, reported robust first-quarter 2026 results that underscored a meaningful recovery in the domestic market. The average external selling price for the company's steel operations climbed $86 sequentially to $1,193 per ton — a clear sign that flat-rolled pricing has bounced back from the softness seen throughout the second half of 2025. Demand was strongest in the energy, non-residential construction, automotive, and industrial sectors, with producer lead times described as being at strong levels heading into Q2. The company's metals recycling operations swung dramatically, with operating income jumping 155% compared to Q4 2025, driven by higher ferrous and nonferrous selling values. Average scrap cost per ton melted rose $22 to $396, reflecting the robust domestic demand for raw materials that tariff protections have continued to attract. Steel Dynamics also highlighted progress in its ambitious aluminum expansion strategy, obtaining automotive qualifications for aluminum hot band and commissioning its first continuous anneal and solution heat treat (CASH) line. A second CASH line is on track for Q3 2026, positioning the company to serve growing demand from automakers pivoting to high-recycled-content aluminum. CEO Mark Millett called the aluminum opportunity a "counter-cyclical" growth engine alongside steel. The results signal that the broader U.S. steel industry is in a fundamentally healthier position in early 2026 than it was just six months ago.