Jan 26(Reuters) - Steel Dynamics posted a rise in fourth-quarter profit on Monday, driven by falling scrap metal costs and stable pricing in its fabrication segment.
Despite U.S. President Donald Trump's sweeping tariffs bolstering U.S. steel spot prices, commercial contracts have lagged as the industry adjusted to an older pricing index, resulting in lower selling prices during the quarter.
But the steelmaker benefited from lower prices for scrap steel, a key raw material and essential feedstock for Steel Dynamics' exclusively electric-arc furnace steel-producing mills.
The Fort Wayne, Indiana-based company reported fourth-quarter profit of $1.82 per share compared with $1.36 a year earlier.
"We are seeing an improved flat-rolled steel market environment, supported by domestic trade actions, manufacturing onshoring," CEO Mark Millett said.
"Long product steel demand remains very strong, especially for structural steel and railroad rail," he added.
The company posted revenue of $4.41 billion in the fourth quarter, missing analysts' average estimate of $4.58 billion, according to data compiled by LSEG.
