Nucor and Steel Dynamics Earnings CallsI listened to parts of the Nucor and Steel Dynamics earnings calls over the past couple of days. Just like Stelco,they have enjoyed great years and although they have been impacted by COVID, supply chains and the dropping steel price, they spoke of the great market and expected things to improve after a bit of a soft patch. No...things are not perfect comparisons and these companies have more value added products in their product mix,but it was encouraging to hear them talk about solid demand... and more to come as the auto makers ramp up.
I did some rough numbers and I think Stelco can make at least 10 bucks a share in cash flow at today's exchange rate and $800 US a ton steel. According to Flack metals, the current cost of HRC electric mini mill production is $680 US... so competitors would be hard pressed to sell it much cheaper than $800 with the other overhead costs required.
GLTA