UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the period

ended ~~June 30, 2020~~March 31, 2021

☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Commission File Number 0-21719

Steel Dynamics, Inc.

(Exact name of registrant as specified in its charter)

Indiana		35-1929476
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

7575 West Jefferson Blvd, Fort Wayne, IN		46804
(Address of principal executive offices)		(Zip Code)

Registrant’s telephone number, including area code: (260) 969-3500

Securities registered pursuant to Section 12(b) of the Act.


Title of each class	Trading Symbol	Name of each exchange on which registered
Common Stock voting, $0.0025 par value	STLD	NASDAQ Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ⌧ No ◻

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ⌧ No ◻

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company (see definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act).

Large accelerated filer ⌧	Accelerated filer ◻	Non-accelerated filer ◻

Smaller reporting company ☐	Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ◻

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No⌧

As of ~~July 31, 2020,~~April 19, 2021, Registrant had ~~210,364,813~~211,218,956 outstanding shares of common stock.

Table of Contents

STEEL DYNAMICS, INC.

Table of Contents


PART I. Financial Information

Item 1.	Financial Statements:	Page

	Consolidated Balance Sheets as of ~~June 30, 2020~~March 31, 2021 (unaudited) and December 31, ~~2019~~2020	1
~~��~~
	Consolidated Statements of Income for the ~~three and six-month~~three-month periods ended ~~June 30,~~March 31, 2021 and 2020 ~~and 2019~~ (unaudited)	2

	Consolidated Statements of Comprehensive Income for the ~~three and six-month~~three-month periods ended ~~June 30,~~March 31, 2021 and 2020 ~~and 2019~~ (unaudited)	3

	Consolidated Statements of Cash Flows for the ~~three and six-month~~three-month periods ended ~~June 30,~~March 31, 2021 and 2020 ~~and 2019~~ (unaudited)	4

	Notes to Consolidated Financial Statements (unaudited)	5

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	1514

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	2221

Item 4.	Controls and Procedures	2321



	PART II. Other Information

Item 1.	Legal Proceedings	2422

Item 1A.	Risk Factors	2422

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	2522

Item 3.	Defaults Upon Senior Securities	2522

Item 4.	Mine Safety Disclosures	2522

Item 5.	Other Information	2522

Item 6.	Exhibits	2623

Exhibit Index		2623

Signature		2824

Table of Contents

STEEL DYNAMICS, INC.

CONSOLIDATED BALANCE SHEETS

(in thousands, except share data)



	June 30,		December 31,		March 31,		December 31,
	2020		2019		2021		2020
Assets	(unaudited)				(unaudited)
Current assets
Cash and equivalents	$	1,496,458	$	1,381,460	$	1,245,165	$	1,368,618
Short-term investments		69,546		262,174
Accounts receivable, net		841,593		841,378		1,360,535		967,981
Accounts receivable-related parties		2,463		2,958		5,928		3,937
Inventories		1,567,017		1,689,043		2,217,534		1,843,548
Other current assets		39,043		76,012		67,744		74,363
Total current assets		4,016,120		4,253,025		4,896,906		4,258,447

Property, plant and equipment, net		3,587,450		3,135,886		4,340,411		4,105,569

Intangible assets, net		313,520		327,901		317,139		324,577
Goodwill		451,220		452,915		456,378		457,226
Other assets		100,031		106,038		117,062		119,743
Total assets	$	8,468,341	$	8,275,765	$	10,127,896	$	9,265,562
Liabilities and Equity
Current liabilities
Accounts payable	$	696,845	$	509,687	$	1,113,250	$	760,536
Accounts payable-related parties		5,087		3,657		21,422		8,919
Income taxes payable		25,411		2,014		52,969		2,386
Accrued payroll and benefits		148,055		208,287		182,044		201,778
Accrued interest		11,859		18,292		33,856		19,656
Accrued expenses		154,243		175,405		176,422		178,618
Current maturities of long-term debt		73,926		89,356		81,226		86,894
Total current liabilities		1,115,426		1,006,698		1,661,189		1,258,787

Long-term debt		2,636,722		2,644,988		3,016,200		3,015,782
Deferred income taxes		503,034		484,169		602,185		536,288
Other liabilities		73,237		75,055		113,125		106,479
Total liabilities		4,328,419		4,210,910		5,392,699		4,917,336

Commitments and contingencies

Redeemable noncontrolling interests		152,414		143,614		163,614		158,614

Equity
Common stock voting, $.0025 par value; 900,000,000 shares authorized;
266,072,787 and 266,072,787 shares issued; and 210,364,813 and 214,502,639
shares outstanding, as of June 30, 2020 and December 31, 2019, respectively		646		646
Treasury stock, at cost; 55,707,974 and 51,570,148 shares,
as of June 30, 2020 and December 31, 2019, respectively		(1,623,855)		(1,525,113)
Common stock voting, $0.0025 par value; 900,000,000 shares authorized;
266,618,566 shares issued; and 211,218,956 and 210,914,264
shares outstanding, as of March 31, 2021 and December 31, 2020, respectively						648		648
Treasury stock, at cost; 55,399,610 and 55,704,302 shares,
as of March 31, 2021 and December 31, 2020, respectively						(1,614,866)		(1,623,747)
Additional paid-in capital		1,191,614		1,181,012		1,202,945		1,207,392
Retained earnings		4,576,629		4,419,296		5,134,398		4,758,969
Accumulated other comprehensive income (loss)		216		(7)
Accumulated other comprehensive income						5,667		1,902
Total Steel Dynamics, Inc. equity		4,145,250		4,075,834		4,728,792		4,345,164
Noncontrolling interests		(157,742)		(154,593)		(157,209)		(155,552)
Total equity		3,987,508		3,921,241		4,571,583		4,189,612
Total liabilities and equity	$	8,468,341	$	8,275,765	$	10,127,896	$	9,265,562

See notes to consolidated financial ~~statements~~.

statements.

Table of Contents

STEEL DYNAMICS, INC.

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(in thousands, except per share data)



	Three Months Ended				Six Months Ended				Three-Month Periods Ended
	June 30,				June 30,				March 31,
	2020		2019		2020		2019		2021		2020

Net sales
Unrelated parties	$	2,092,964	$	2,766,364	$	4,664,508	$	5,580,850	$	3,537,625	$	2,571,544
Related parties		1,341		4,151		4,897		7,100		6,972		3,556
Total net sales		2,094,305		2,770,515		4,669,405		5,587,950		3,544,597		2,575,100

Costs of goods sold		1,809,874		2,349,349		3,969,745		4,733,214		2,744,331		2,159,871
Gross profit		284,431		421,166		699,660		854,736		800,266		415,229

Selling, general and administrative expenses		109,299		106,250		222,197		217,288		149,781		112,898
Profit sharing		9,092		22,871		30,546		46,548		48,848		21,454
Amortization of intangible assets		7,190		7,013		14,381		14,026		7,438		7,191
Operating income		158,850		285,032		432,536		576,874		594,199		273,686

Interest expense, net of capitalized interest		27,702		32,321		55,721		63,443		17,269		28,019
Other (income) expense, net		28,103		(4,249)		25,514		(10,592)		10,071		(2,589)
Income before income taxes		103,045		256,960		351,301		524,023		566,859		248,256

Income tax expense		24,280		60,214		81,700		122,450		128,104		57,420
Net income		78,765		196,746		269,601		401,573		438,755		190,836

Net income attributable to noncontrolling interests		(3,269)		(2,444)		(6,765)		(2,943)		(8,248)		(3,496)
Net income attributable to Steel Dynamics, Inc.	$	75,496	$	194,302	$	262,836	$	398,630	$	430,507	$	187,340



Basic earnings per share attributable to Steel Dynamics,
Inc. stockholders	$	0.36	$	0.88	$	1.24	$	1.79	$	2.04	$	0.88

Weighted average common shares outstanding		210,343		221,505		211,798		222,781		211,015		213,254

Diluted earnings per share attributable to Steel Dynamics, Inc.
stockholders, including the effect of assumed conversions
when dilutive	$	0.36	$	0.87	$	1.24	$	1.78	$	2.03	$	0.88

Weighted average common shares and share equivalents outstanding		211,378		222,519		212,701		223,741		212,254		214,024

Dividends declared per share	$	0.25	$	0.24	$	0.50	$	0.48	$	0.26	$	0.25

See notes to consolidated financial ~~statements~~.

statements.

Table of Contents

STEEL DYNAMICS, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

(in thousands)



	Three Months Ended				Six Months Ended				Three-Month Periods Ended
	June 30,				June 30,				March 31,
	2020		2019		2020		2019		2021		2020

Net income	$	78,765	$	196,746	$	269,601	$	401,573	$	438,755	$	190,836
Other comprehensive income (loss) - net unrealized gain (loss) on
Other comprehensive income - net unrealized gain on
cash flow hedging derivatives, net of income tax		186		(52)		223		(223)		3,765		37
Comprehensive income		78,951		196,694		269,824		401,350		442,520		190,873

Comprehensive income attributable to noncontrolling interests		(3,269)		(2,444)		(6,765)		(2,943)		(8,248)		(3,496)
Comprehensive income attributable to Steel Dynamics, Inc.	$	75,682	$	194,250	$	263,059	$	398,407	$	434,272	$	187,377

See notes to consolidated financial ~~statements~~.

statements.

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STEEL DYNAMICS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(in thousands)



	Three Months Ended				Six Months Ended				Three-Month Periods Ended
	June 30,				June 30,				March 31,
	2020		2019		2020		2019		2021		2020

Operating activities:
Net income	$	78,765	$	196,746	$	269,601	$	401,573	$	438,755	$	190,836

Adjustments to reconcile net income to net cash provided by
operating activities:
Depreciation and amortization		78,721		80,911		158,980		161,085		86,919		80,259
Equity-based compensation		9,520		9,080		27,364		24,388		17,040		17,844
Deferred income taxes		14,634		11,550		20,561		23,641		66,744		5,927
Other adjustments		4,728		(564)		4,464		164		(662)		(264)
Changes in certain assets and liabilities:
Accounts receivable		154,352		70,624		280		9,562		(394,545)		(154,072)
Inventories		77,521		64,941		122,026		104,410		(374,588)		44,505
Other assets		11,137		7,292		9,596		7,593		5,828		(1,541)
Accounts payable		69,523		(58,484)		121,119		(55,278)		360,681		51,596
Income taxes receivable/payable		7,993		(36,428)		60,378		13,422		59,593		52,385
Accrued expenses		(20,884)		15,805		(97,078)		(147,534)		(3,574)		(76,194)
Net cash provided by operating activities		486,010		361,473		697,291		543,026		262,191		211,281

Investing activities:
Purchases of property, plant and equipment		(309,716)		(85,120)		(527,251)		(139,556)		(309,863)		(217,535)
Purchases of short-term investments		-		(49,465)		(149,359)		(99,142)		-		(149,359)
Proceeds from maturities of short-term investments		149,648		109,034		341,988		213,771		-		192,340
Acquisition of business, net of cash and restricted cash acquired		-		-		-		(93,412)
Other investing activities		803		913		1,321		1,277		390		518
Net cash used in investing activities		(159,265)		(24,638)		(333,301)		(117,062)		(309,473)		(174,036)

Financing activities:
Issuance of current and long-term debt		1,099,774		125,222		1,316,035		246,456		297,441		216,261
Repayment of current and long-term debt		(1,103,814)		(133,875)		(1,339,571)		(249,146)		(304,284)		(235,757)
Dividends paid		(52,584)		(53,503)		(104,065)		(95,742)		(52,729)		(51,481)
Purchases of treasury stock		-		(93,136)		(106,529)		(177,444)		-		(106,529)
Other financing activities		(8,763)		(12)		(14,915)		(5,732)		(16,598)		(6,152)
Net cash used in financing activities		(65,387)		(155,304)		(249,045)		(281,608)		(76,170)		(183,658)

Increase in cash, cash equivalents, and restricted cash		261,358		181,531		114,945		144,356
Decrease in cash, cash equivalents, and restricted cash										(123,452)		(146,413)
Cash, cash equivalents, and restricted cash at beginning of period		1,240,984		797,248		1,387,397		834,423		1,374,122		1,387,397

Cash, cash equivalents, and restricted cash at end of period	$	1,502,342	$	978,779	$	1,502,342	$	978,779	$	1,250,670	$	1,240,984


Supplemental disclosure information:
Cash paid for interest	$	59,668	$	53,981	$	68,453	$	62,587	$	11,315	$	8,785
Cash paid for income taxes, net	$	1,430	$	84,516	$	1,948	$	86,355	$	2,142	$	518

See notes to consolidated financial ~~statements~~.statements.

Table of Contents

STEEL DYNAMICS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Note 1. Description of the Business and Significant Accounting Policies

Description of the Business

Steel Dynamics, Inc. (SDI), together with its subsidiaries (the company), is aone of the largest and most diversified domestic ~~manufacturer of~~ steel ~~products~~producers and metals recycler. The company has 3 ~~reportable~~reporting segments: steel operations, metals recycling operations, and steel fabrication operations.

Steel Operations Segment. Steel operations include the company’s 6 operating electric arc furnace steel mills, including Butler Flat Roll Division, Columbus Flat Roll Division, Structural and Rail Division, Engineered Bar Products Division, Roanoke Bar Division, and Steel of West Virginia, our under construction Southwest-Sinton Flat Roll Division; and steel coating and processing operations at The Techs galvanizing lines, Heartland Flat Roll Division, United Steel Supply ~~Structural~~(USS), and ~~Rail Division, Engineered Bar Products Division,~~ Vulcan Threaded Products, Inc., Roanoke Bar Division, Steel of West Virginia, and Iron Dynamics, a liquid pig iron (scrap substitute) production facility that supplies solely the Butler Flat Roll Division. These operations include electric arc furnace steel mills, producing steel from ferrous scrap and scrap substitutes, utilizing continuous casting, automated rolling mills, with several coating and processing lines. Steel operations accounted for ~~78%~~71% and ~~76%~~75% of the company’s consolidated ~~external~~ net sales during the ~~three months~~three-month periods ended ~~June 30,~~March 31, 2021 and 2020, ~~and 2019, and 76% of the company's consolidated external net sales during the six months ended June 30, 2020 and 2019.~~respectively.

Metals Recycling Operations Segment. Metals recycling operations ~~consists solely of~~include the company’s OmniSource ~~LLC (OmniSource), and includes both~~ ferrous and nonferrous processing, transportation, marketing, brokerage, and scrap management ~~services.~~services primarily throughout the United States and in Central and Northern Mexico. Metals recycling operations accounted for 7%13% and ~~12%~~11% of the company’s consolidated ~~external~~ net sales during the ~~three months~~three-month periods ended ~~June 30,~~March 31, 2021 and 2020, ~~and 2019, respectively, and~~ ~~10% and 12% of the company’s consolidated external net sales during the six months ended June 30, 2020 and 2019,~~ respectively.

Steel Fabrication Operations Segment. Steel fabrication operations include the company’s New Millennium Building Systems’ joist and deck plants located throughout the United States, and in Northern Mexico. Revenues from these plants are generated from the fabrication of trusses, girders, steel joists and steel deck used within the non-residential construction industry. Steel fabrication operations accounted for ~~10%~~7% and 9% of the company’s consolidated ~~external~~ net sales during the ~~three months~~three-month periods ended ~~June 30,~~March 31, 2021 and 2020, ~~and 2019, respectively and 9% and 8% of the company’s consolidated external net sales during the six months ended June 30, 2020 and 2019,~~ respectively.

Other. Other operations ~~consists~~consist of subsidiary operations that are below the quantitative thresholds required for reportable segments and primarily consist of ~~smaller~~ joint ventures, and ~~the~~our idle Minnesota ironmaking operations. Also included in “Other” are certain unallocated corporate accounts, such as the company’s senior unsecured credit facility, senior notes, certain other investments and certain profit sharing expenses.

Significant Accounting Policies

Principles of Consolidation. The consolidated financial statements include the accounts of SDI, together with its wholly- and majority-owned or controlled subsidiaries, after elimination of intercompany accounts and transactions. Noncontrolling and redeemable noncontrolling interests represent the noncontrolling owner’s proportionate share in the equity, income, or losses of the company’s majority-owned or controlled consolidated subsidiaries. Redeemable noncontrolling interests related to USS (owned 75% by SDI) are $52.4 million at March 31, 2021 and $47.4 million at December 31, 2020. Redeemable noncontrolling interests related to Mesabi Nugget (owned 84% by SDI) are $111.2 million at March 31, 2021, and December 31, 2020.

Use of Estimates. These consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States, and accordingly, include amounts that require management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and in the notes thereto. Significant items subject to such estimates and assumptions include the carrying value of property, plant and equipment, intangible assets, and goodwill; valuation allowances ~~for credit losses~~ for trade receivables, inventories and deferred income tax assets; unrecognized tax benefits; potential environmental liabilities; and litigation claims and settlements. Actual results may differ from these estimates and assumptions.

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STEEL DYNAMICS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Note 1. Description of the Business and Significant Accounting Policies (Continued)

In the opinion of management, these financial statements reflect all normal recurring adjustments necessary for a fair presentation of the interim period results. These consolidated financial statements and notes should be read in conjunction with the audited financial statements and notes thereto included in the company’s Annual Report on Form 10-K for the year ended December 31, ~~2019.~~

~~Table of Contents~~

~~STEEL DYNAMICS, INC.~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)~~

~~Note 1. Description of the Business and Significant Accounting Policies (Continued)~~2020.

Cash and Equivalents, and Restricted Cash

Cash and equivalents include all highly liquid investments with a maturity of three months or less at the date of acquisition. Restricted cash ~~and equivalents~~ is primarily funds held in escrow as required by various insurance and government organizations. The balance of cash, cash equivalents and restricted cash in the consolidated statements of cash flows includes restricted cash of ~~$5.9 million,~~ $5.5 million ~~$5.9 million, $6.2 million, $5.8 million,~~at March 31, 2021, December 31, 2020, and ~~$6.2 million at June 30, 2020,~~ March 31, 2020, and $5.9 million at December 31, 2019, ~~June 30, 2019, March 31, 2019, and December 31, 2018, respectively,~~ which are recorded in Other Assets (noncurrent) in the company’s consolidated balance sheets.

Goodwill

The company’s goodwill consisted of the following at ~~June 30, 2020,~~March 31, 2021, and December 31, ~~2019,~~2020, (in thousands):



	June 30,		December 31,			March 31,		December 31,
	2020		2019			2021		2020

Steel Operations Segment	$	272,133	$	272,133	Steel Operations Segment	$	272,133	$	272,133
Metals Recycling Operations Segment		177,162		178,857	Metals Recycling Operations Segment		182,320		183,168
Steel Fabrication Operations Segment		1,925		1,925	Steel Fabrication Operations Segment		1,925		1,925
	$	451,220	$	452,915		$	456,378	$	457,226

Metals Recycling Operations Segment goodwill decreased ~~$1.7 million~~$848,000 from December 31, ~~2019~~2020 to ~~June 30, 2020,~~March 31, 2021, in recognition of the ~~2020~~2021 tax benefit related to the normal amortization of the component of ~~OmniSource~~Metals Recycling Operations tax-deductible goodwill in excess of book goodwill.

Credit Losses

ASU 2016-13, Financial Instruments - Credit Losses and its subsequent corresponding updates (ASC 326), requires an entity to use a forward-looking expected loss model versus the incurred loss model for most financial instruments, including accounts receivable. The company adopted ASC 326 effective January 1, 2020, using the modified retrospective transition method, with no impact on the company’s financial position, results of operations or cash flows.

The company is exposed to credit risk in the event of nonpayment of accounts receivable by customers. The company mitigates its exposure to credit risk, which it generally extends on an unsecured basis, by performing ongoing credit evaluations and taking further action if necessary, such as requiring letters of credit or other security interests to support the customer receivable. The allowance for credit losses for accounts receivable is based on the company’s reasonable estimate of known credit risks and historical experience, adjusted for current and anticipated economic and other pertinent factors affecting the company’s customers, that may differ from historical experience. Customer accounts receivable are written off when all collection efforts have been exhausted and the amounts are deemed uncollectible.

At ~~June 30, 2020, we~~March 31, 2021, the company reported ~~$844.1~~$1,366.5 million of accounts receivable, net of allowances for credit losses of ~~$7.7~~$8.2 million. Changes in the allowance were not material for the ~~three and six-month~~three-month periods ended ~~June 30,~~March 31, 2021 and 2020.

Table of Contents

STEEL DYNAMICS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Note 2. Earnings Per Share

Basic earnings per share is based on the weighted average shares of common stock outstanding during the period. Diluted earnings per share assumes the weighted average dilutive effect of common share equivalents outstanding during the period applied to the company’s basic earnings per share. Common share equivalents represent potentially dilutive restricted stock units, deferred stock units, restricted stock, and performance awards, and are excluded from the computation in periods in which they have an anti-dilutive effect. There were 0 anti-dilutive common share equivalents as of or for the ~~three and six-month~~three-month periods ended ~~June 30, 2020~~March 31, 2021 and ~~2019.~~2020.

Three Months Ended June 30,

2020

2019

Weighted

Weighted

Average

Average

Net Income

Shares

Per Share

Net Income

Shares

Per Share

(Numerator)

(Denominator)

Amount

(Numerator)

(Denominator)

Amount
Basic earnings per share
$
75,496

210,343

$
0.36

$
194,302

221,505

$
0.88
Dilutive common share equivalents

-

1,035

-

1,014

Diluted earnings per share
$
75,496

211,378

$
0.36

$
194,302

222,519

$
0.87



	Six Months Ended June 30,												Three-Month Periods Ended March 31,
	2020						2019						2021						2020
			Weighted						Weighted						Weighted						Weighted
			Average						Average						Average						Average
	Net Income		Shares		Per Share		Net Income		Shares		Per Share		Net Income		Shares		Per Share		Net Income		Shares		Per Share
	(Numerator)		(Denominator)		Amount		(Numerator)		(Denominator)		Amount		(Numerator)		(Denominator)		Amount		(Numerator)		(Denominator)		Amount
Basic earnings per share	$	262,836		211,798	$	1.24	$	398,630		222,781	$	1.79	$	430,507		211,015	$	2.04	$	187,340		213,254	$	0.88
Dilutive common share equivalents		-		903				-		960				-		1,239				-		770
Diluted earnings per share	$	262,836		212,701	$	1.24	$	398,630		223,741	$	1.78	$	430,507		212,254	$	2.03	$	187,340		214,024	$	0.88

Note 3. Inventories

Inventories are stated at lower of cost or net realizable value. Cost is determined using a weighted average cost method for raw materials and supplies, and on a first-in, first-out basis for other inventory. Inventory consisted of the following (in thousands):

June 30,

December 31,

2020

2019

Raw materials
$
589,122

$
686,831

Supplies

483,323

498,298

Work in progress

150,139

154,669

Finished goods

344,433

349,245

Total inventories
$
1,567,017

$
1,689,043


	March 31,		December 31,
	2021		2020
Raw materials	$	1,090,025	$	790,324
Supplies		494,045		500,497
Work in progress		209,786		162,843
Finished goods		423,678		389,884
Total inventories	$	2,217,534	$	1,843,548

~~Note 4. Debt~~

~~In June 2020, the company issued $400.0 million of 2.400% notes due 2025 and $500.0 million of 3.250% notes due 2031. The net proceeds from these notes~~ were used to fund the June 2020 call and redemption of the $400.0 million outstanding principal amount of the company’s 5.250% senior notes due 2023 (“2023 Notes”) at a redemption price of 100.875%, ~~and the $500.0 million outstanding principal amount of the company’s 5.500% senior notes due 2024 (“2024 Notes”) at a redemption price of 102.750%~~, plus accrued and unpaid interest to, but not including, the date of redemption. The company recorded expenses related to premiums, write off of unamortized debt issuance costs, and other expenses of approximately $22.8 million, which are reflected in other expenses in the consolidated statements of income for the three and six-months ended June 30, 2020.

Table of Contents

STEEL DYNAMICS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Note 5.4. Changes in Equity

The following tables provide a reconciliation of the beginning and ending carrying amounts of total equity, equity attributable to stockholders of Steel Dynamics, Inc., and equity and redeemable amounts attributable to noncontrolling interests (in thousands) for ~~three~~each three-month period ended March 31, 2021 and ~~six-month periods ended June 30, 2020 and 2019:~~2020:



	Stockholders of Steel Dynamics, Inc.																Stockholders of Steel Dynamics, Inc.
									Accumulated																Accumulated
					Additional				Other						Redeemable						Additional				Other						Redeemable
	Common		Treasury		Paid-In		Retained		Comprehensive		Noncontrolling		Total		Noncontrolling		Common		Treasury		Paid-In		Retained		Comprehensive		Noncontrolling		Total		Noncontrolling
	Stock		Stock		Capital		Earnings		Loss		Interests		Equity		Interests		Stock		Stock		Capital		Earnings		Income (Loss)		Interests		Equity		Interests
Balances at December 31, 2019	$	646	$	(1,525,113)	$	1,181,012	$	4,419,296	$	(7)	$	(154,593)	$	3,921,241	$	143,614
Balances at December 31, 2020																	$	648	$	(1,623,747)	$	1,207,392	$	4,758,969	$	1,902	$	(155,552)	$	4,189,612	$	158,614
Dividends declared		-		-		-		(52,585)		-		-		(52,585)		-		-		-		-		(54,917)		-		-		(54,917)		-
Noncontrolling investors of USS		-		-		-		-		-		(7,504)		(7,504)		7,400
Share repurchases		-		(106,529)		-		-		-		-		(106,529)		-
Noncontrolling investors, net																		-		-		-		-		-		(9,905)		(9,905)		5,000
Equity-based compensation		-		6,834		2,764		(169)		-		-		9,429		-		-		8,881		(4,447)		(161)		-		-		4,273		-
Net income		-		-		-		187,340		-		3,496		190,836		-		-		-		-		430,507		-		8,248		438,755		-
Other comprehensive loss, net of tax		-		-		-		-		37		-		37		-		-		-		-		-		3,765		-		3,765		-
Balances at March 31, 2020		646		(1,624,808)		1,183,776		4,553,882		30		(158,601)		3,954,925		151,014
Dividends declared		-		-		-		(52,591)		-		-		(52,591)		-
Noncontrolling investors of USS		-		-		-		-		-		(2,410)		(2,410)		1,400
Share repurchases		-		-		-		-		-		-		-		-
Equity-based compensation		-		953		7,838		(158)		-		-		8,633		-
Net income		-		-		-		75,496		-		3,269		78,765		-
Other comprehensive loss, net of tax		-		-		-		-		186		-		186		-
Balances at June 30, 2020	$	646	$	(1,623,855)	$	1,191,614	$	4,576,629	$	216	$	(157,742)	$	3,987,508	$	152,414
Balances at March 31, 2021																	$	648	$	(1,614,866)	$	1,202,945	$	5,134,398	$	5,667	$	(157,209)	$	4,571,583	$	163,614



	Stockholders of Steel Dynamics, Inc.																Stockholders of Steel Dynamics, Inc.
									Accumulated																Accumulated
					Additional				Other						Redeemable						Additional				Other						Redeemable
	Common		Treasury		Paid-In		Retained		Comprehensive		Noncontrolling		Total		Noncontrolling		Common		Treasury		Paid-In		Retained		Comprehensive		Noncontrolling		Total		Noncontrolling
	Stock		Stock		Capital		Earnings		Loss		Interests		Equity		Interests		Stock		Stock		Capital		Earnings		Income (Loss)		Interests		Equity		Interests
Balances at December 31, 2018	$	645	$	(1,184,243)	$	1,160,048	$	3,958,320	$	301	$	(159,082)	$	3,775,989	$	111,240
Balances at December 31, 2019																	$	646	$	(1,525,113)	$	1,181,012	$	4,419,296	$	(7)	$	(154,593)	$	3,921,241	$	143,614
Dividends declared		-		-		-		(53,504)		-		-		(53,504)		-		-		-		-		(52,585)		-		-		(52,585)		-
Noncontrolling investors of USS		-		-		-		-				-		-		28,690
Noncontrolling investors, net																		-		-		-		-		-		(7,504)		(7,504)		7,400
Share repurchases		-		(84,308)		-		-		-		-		(84,308)		-		-		(106,529)		-		-		-		-		(106,529)		-
Equity-based compensation		-		6,714		91		(110)		-		-		6,695		-		-		6,834		2,764		(169)		-		-		9,429		-
Net income		-		-		-		204,328		-		499		204,827		-		-		-		-		187,340		-		3,496		190,836		-
Other comprehensive loss, net of tax		-		-		-		-		(171)		-		(171)		-		-		-		-		-		37		-		37		-
Balances at March 31, 2019		645		(1,261,837)		1,160,139		4,109,034		130		(158,583)		3,849,528		139,930
Dividends declared		-		-		-		(52,751)		-		-		(52,751)		-
Share repurchases		-		(93,136)		-		-		-		-		(93,136)		-
Equity-based compensation		-		816		7,366		(166)		-		-		8,016		-
Net income		-		-		-		194,302		-		2,444		196,746		-
Other comprehensive loss, net of tax		-		-		-		-		(52)		-		(52)		-
Balances at June 30, 2019	$	645	$	(1,354,157)	$	1,167,505	$	4,250,419	$	78	$	(156,139)	$	3,908,351	$	139,930
Balances at March 31, 2020																	$	646	$	(1,624,808)	$	1,183,776	$	4,553,882	$	30	$	(158,601)	$	3,954,925	$	151,014

~~Table of Contents~~

~~STEEL DYNAMICS, INC.~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)~~

Note 6.5. Derivative Financial Instruments

The company is exposed to certain risks relating to its ongoing business operations. The company utilizes derivative instruments to mitigate commodity margin risk, and occasionally to mitigate foreign currency exchange rate risk, and have in the past to mitigate interest rate fluctuation risk. The company routinely enters into forward exchange traded futures and option contracts to manage the price risk associated with nonferrous metals inventory as well as purchases and sales of nonferrous and ferrous metals (primarily aluminum and copper). The company offsets fair value amounts recognized for derivative instruments executed with the same counterparty under master netting agreements.

Table of Contents

STEEL DYNAMICS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Note 5. Derivative Financial Instruments (Continued)

Commodity Futures Contracts. If the company is “long” on futures contracts, it means the company has more futures contracts purchased than futures contracts sold for the underlying commodity. If the company is “short” on a futures contract, it means the company has more futures contracts sold than futures contracts purchased for the underlying commodity. The following summarizes the company’s significant futures contract commitments as of ~~June 30, 2020:~~

March 31, 2021:



Commodity Futures	Long/Short	Metric Tons
Aluminum	Long	~~3,525~~3,475
Aluminum	Short	~~4,475~~7,025
Copper	Long	~~11,453~~8,301
Copper	Short	~~19,493~~22,725

The following summarizes the location and amounts of the fair values reported on the company’s consolidated balance sheets as of ~~June 30, 2020,~~March 31, 2021, and December 31, ~~2019,~~2020, and gains and losses related to derivatives included in the company’s statement of income for the ~~three and six-month~~three-month periods ended ~~June 30,~~March 31, 2021, and 2020 ~~and 2019~~ (in thousands):



		Asset Derivatives				Liability Derivatives					Asset Derivatives				Liability Derivatives
	Balance sheet	Fair Value				Fair Value				Balance sheet	Fair Value				Fair Value
	location	June 30, 2020		December 31, 2019		June 30, 2020		December 31, 2019		location	March 31, 2021		December 31, 2020		March 31, 2021		December 31, 2020
Derivative instruments designated as hedges
Commodity futures	Other current assets	$	2,060	$	966	$	4,260	$	1,011	Other current assets	$	17,009	$	5,092	$	3,825	$	4,635

Derivative instruments not designated as hedges
Commodity futures	Other current assets		3,500		310		2,588		721	Other current assets		2,967		1,705		1,680		2,807
Total derivative instruments		$	5,560	$	1,276	$	6,848	$	1,732		$	19,976	$	6,797	$	5,505	$	7,442

The fair value of the above derivative instruments along with required margin deposit amounts with the same counterparty under master netting arrangements totaled ~~$3.1~~$15.6 million at ~~June 30, 2020,~~March 31, 2021, and ~~$3.7~~$13.2 million at

December 31, ~~2019,~~2020, and are reflected in other current assets in the consolidated balance sheets.

Amount of gain (loss)

recognized in income

Location of gain

recognized in income

Location of gain

recognized in income

Location of gain

on derivatives for the

(loss) recognized

on derivatives for the

Location of gain

on derivatives for the

(loss) recognized

on derivatives for the

(loss) recognized

three months ended

Hedged items in

in income on

three months ended

(loss) recognized

three-month periods

Hedged items in

in income on

three-month periods

in income on

June 30,

fair value hedge

related hedged

June 30,

in income on

ended March 31,

fair value hedge

related hedged

ended March 31,

derivatives

2020

2019

relationships

items

2020

2019

derivatives

2021

2020

relationships

items

2021

2020

Derivatives in fair value

hedging relationships

Commodity futures

Costs of goods sold

(3,287)

591

Firm commitments

Costs of goods sold

(484)

1,415

Costs of goods sold

7,786

838

Firm commitments

Costs of goods sold

(1,898)

1,739

Inventory

Costs of goods sold

2,579

(294)

Inventory

Costs of goods sold

(498)

(1,239)

Derivatives not designated

2,095

1,121

(2,396)

500

as hedging instruments

Commodity futures

Costs of goods sold

(1,289)

5,487

Costs of goods sold

(30,195)

10,939

Derivatives accounted for as fair value hedges had ineffectiveness resulting in gains of $21,000 and losses of $61,000 during the three-month periods ended March 31, 2021, and 2020, respectively. Gains excluded from hedge effectiveness testing of $5.4 million and $1.4 million decreased cost of goods sold during the three-month periods ended March 31, 2021 and 2020, respectively.

Table of Contents

STEEL DYNAMICS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Note 5. Derivative Financial Instruments (Continued)

Derivatives accounted for as cash flow hedges resulted in net gains of $9.3 million and $11,000 recognized in other comprehensive income for the three-month periods ended March 31, 2021, and 2020, respectively. Net gains of $4.4 million and net losses of $37,000 were reclassified from accumulated other comprehensive income for the three-month periods ended March 31, 2021, and 2020, respectively. At March 31, 2021, the company expects to reclassify all $7.4 million of net gains on derivative instruments from accumulated other comprehensive income to earnings during the next 12 months due to the settlement of futures contracts. The maximum term over which the company is hedging its exposure to the variability of future cash flows for forecasted transactions is less than 12 months.

~~Note 6. Derivative Financial Instruments (Continued)~~

Amount of gain (loss)

Amount of gain (loss)

recognized in income

Location of gain
recognized in income

Location of gain
on derivatives for the

(loss) recognized
on derivatives for the

(loss) recognized
six months ended

Hedged items in

in income on
six months ended

in income on
June 30,

fair value hedge

related hedged
June 30,

derivatives
2020

2019

relationships

items
2020

2019
Derivatives in fair value

hedging relationships

Commodity futures

Costs of goods sold
$
(2,449)

$
(862)

Firm commitments

Costs of goods sold
$
1,255

$
(84)

Inventory

Costs of goods sold

1,340

427
Derivatives not designated

$
2,595

$
343
as hedging instruments

Commodity futures

Costs of goods sold
$
9,650

$
1,410

Derivatives accounted for as fair value hedges had ineffectiveness resulting in gains of $2,400 and $1.2 million during the three-month periods ended June 30, 2020, and 2019, respectively, and losses of $59,000 and gains of $32,000 during the six-month periods ended June 30, 2020, and 2019, respectively. Losses excluded from hedge effectiveness testing of $1.2 million increased cost of goods sold during the three-month period ended June 30, 2020 and g~~ains of $1.7 million decreased cost of goods sold during the three-month period ended June 30, 2019. Gains excluded from hedge effectiveness testing of $205,000 decreased cost of goods sold during the six-month period ended June 30, 2020 and losses of $519,000 increased cost of goods sold during the six-month period ended June 30, 2019.~~

Derivatives accounted for as cash flow hedges resulted in net gains of $480,000 and $88,000 recognized in other comprehensive income for the three-month periods ended June 30, 2020, and 2019, respectively, ~~and net gains of $491,000 and $147,000 for the six-month periods ended June 30, 2020, and 2019, respectively. Net gains of $236,000 and $157,000 were reclassified from accumulated other comprehensive income for the three-month periods ended June 30, 2020, and 2019, respectively,~~ ~~and~~ ~~net gains of $198,000 and $440,000~~ ~~for the six-month periods ended June 30, 2020, and 2019, respectively.~~ At June 30, 2020, the company expects to reclassify all $284,000 of net gains on derivative instruments from accumulated other comprehensive income to earnings during the next 12 months due to the settlement of futures contracts.

Note 7.6. Fair Value Measurements

Accounting standards provide a comprehensive framework for measuring fair value and sets forth a definition of fair value and establishes a hierarchy prioritizing the inputs to valuation techniques, giving the highest priority to quoted prices in active markets for identical assets and liabilities and the lowest priority to unobservable value inputs. Levels within the hierarchy are defined as follows:

●

Level 1—Unadjusted quoted prices for identical assets and liabilities in active markets;

●

Level 2—Quoted prices for similar assets and liabilities in active markets (other than those included in Level 1) which are observable for the asset or liability, either directly or indirectly; and

●

Level 3—Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

~~Table of Contents~~

~~STEEL DYNAMICS, INC.~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)~~

~~Note 7. Fair Value Measurements (Continued)~~

The following table sets forth financial assets and liabilities measured at fair value on a recurring basis in the consolidated balance sheet and the respective levels to which the fair value measurements are classified within the fair value hierarchy as of

~~June 30, 2020,~~ March 31, 2021, and December 31, ~~2019~~2020 (in thousands):



			Quoted Prices		Significant						Quoted Prices		Significant
			in Active		Other		Significant				in Active		Other		Significant
			Markets for		Observable		Unobservable				Markets for		Observable		Unobservable
			Identical Assets		Inputs		Inputs				Identical Assets		Inputs		Inputs
	Total		(Level 1)		(Level 2)		(Level 3)		Total		(Level 1)		(Level 2)		(Level 3)
June 30, 2020
Short-term investments	$	69,546	$	-	$	69,546	$	-
March 31, 2021
Commodity futures – financial assets		5,560		-		5,560		-	$	19,976	$	-	$	19,976	$	-
Commodity futures – financial liabilities		6,848		-		6,848		-		5,505		-		5,505		-

December 31, 2019
Short-term investments	$	262,174	$	-	$	262,174	$	-
December 31, 2020
Commodity futures – financial assets		1,276		-		1,276		-	$	6,797	$	-	$	6,797	$	-
Commodity futures – financial liabilities		1,732		-		1,732		-		7,442		-		7,442		-

The carrying amounts of financial instruments including cash and equivalents, and restricted cash approximate fair value
~~(Level~~ (Level 1). The fair values of ~~short-term investments and~~ the commodity futures contracts are estimated by the use of quoted market prices, estimates obtained from brokers, and other appropriate valuation techniques based on references available (Level 2). The fair value of long-term debt, including current maturities, as determined by quoted market prices (Level 2), was approximately ~~$2.8~~$3.2 billion and $3.4 billion at ~~June 30, 2020~~March 31, 2021, and December 31, ~~2019,~~2020, respectively (with a corresponding carrying amount in the consolidated balance sheet of ~~$2.7~~$3.1 billion at ~~June 30, 2020~~March 31, 2021 and ~~$2.8 billion at~~ December 31, ~~2019)~~2020).

Table of Contents

STEEL DYNAMICS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Note 8.7. Commitments and Contingencies

The company is involved in various routine litigation matters, including administrative proceedings, regulatory proceedings, governmental investigations, environmental matters, and commercial and construction contract disputes, none of which are expected to have a material impact on our financial condition, results of operations, or ~~liquidity.~~liquidity.

Note 9.8. Segment Information

The company’s operations are primarily organized and managed by reportable operating segments, which are steel operations, metals recycling operations, and steel fabrication operations. The segment operations are more fully described in Note 1 to the consolidated financial statements. Operating segment performance and resource allocations are primarily based on operating results before income taxes. The accounting policies of the reportable segments are consistent with those described in Note 1 to the consolidated financial statements. Intra-segment sales and any related profits are eliminated in consolidation. Amounts included in the category “Other” are from subsidiary operations that are below the quantitative thresholds required for reportable segments and primarily consist of smaller joint ventures, and the idle Minnesota ironmaking operations. Also included in “Other” are certain unallocated corporate accounts, such as the company’s senior unsecured credit facility, senior notes, certain other investments and certain profit sharing expenses.

Table of Contents

STEEL DYNAMICS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

Note 9.8. Segment Information (Continued)

The company’s segment results, including disaggregated revenue by segment to external, external non-United States, and other segment customers, are as follows (in thousands):



			Metals		Steel												Metals		Steel
For the three months ended	Steel		Recycling		Fabrication
June 30, 2020	Operations		Operations		Operations		Other			Eliminations			Consolidated
For the three-month period ended															Steel		Recycling		Fabrication
March 31, 2021															Operations		Operations		Operations		Other			Eliminations			Consolidated

Net sales - disaggregated revenue
External	$	1,578,252	$	126,818	$	214,951	$	94,274		$	-		$	2,014,295	$	2,400,916	$	363,878	$	256,962	$	304,251		$	-		$	3,326,007
External Non-U.S.		49,775		29,764		300		171			-			80,010		109,768		106,129		22		2,671			-			218,590
Other segments		71,371		260,106		3,177		-			(334,654)			-		132,163		609,905		2,036		559			(744,663)			-
		1,699,398		416,688		218,428		94,445			(334,654)			2,094,305		2,642,847		1,079,912		259,020		307,481			(744,663)			3,544,597
Operating income (loss)		168,043		(8,715)		27,155		(32,089)	⁽¹⁾		4,456	⁽²⁾		158,850		637,411		50,563		9,854		(90,913)	⁽¹⁾		(12,716)			594,199
Income (loss) before income taxes		151,012		(12,654)		25,959		(65,445)			4,173			103,045		626,059		49,339		9,064		(104,599)			(13,004)	⁽²⁾		566,859
Depreciation and amortization		60,686		12,170		2,737		3,128			-			78,721		66,178		13,870		2,675		4,196			-			86,919
Capital expenditures		301,179		3,821		2,364		2,352			-			309,716		282,598		23,918		2,621		726			-			309,863

As of June 30, 2020
As of March 31, 2021
Assets	$	5,533,365	$	867,866	$	397,070	$	1,718,951	⁽³⁾	$	(48,911)	⁽⁴⁾	$	8,468,341	$	7,053,904	$	1,260,615	$	443,138	$	1,487,620	⁽³⁾	$	(117,381)	⁽⁴⁾	$	10,127,896

Footnotes related to the three months ended June 30, 2020, segment results (in millions):

(1)
Corporate SG&A
$
(14.5)

(2)
Gross profit increase from intra-company sales
$
4.5

Company-wide equity-based compensation

(9.7)

Profit sharing

(8.2)

Other, net

0.3

$
(32.1)

(3)
Cash and equivalents
$
1,418.4

(4)
Elimination of intra-company receivables
$
(35.5)

Short-term investments

69.5

Elimination of intra-company debt

(6.5)

Accounts receivable

11.4

Other

(6.9)

Inventories

26.9

$
(48.9)

Property, plant and equipment, net

148.2

Intra-company debt

6.5

Other

38.1

$
1,719.0


Footnotes related to the three months ended March 31, 2021, segment results (in millions):

(1)	Corporate SG&A	$	(18.0)	(2)	Gross profit decrease from intra-company sales	$	(13.0)
	Companywide equity-based compensation		(23.0)
	Profit sharing		(48.1)
	Other, net		(1.8)
		$	(90.9)

(3)	Cash and equivalents	$	1,154.2	(4)	Elimination of intra-company receivables	$	(76.4)
	Accounts receivable		52.3		Elimination of intra-company debt		(11.7)
	Inventories		95.9		Other		(29.3)
	Property, plant and equipment, net		133.0			$	(117.4)
	Intra-company debt		11.7
	Other		40.5
		$	1,487.6

Table of Contents

STEEL DYNAMICS, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

~~Note 9. Segment Information (Continued)~~

Metals

Steel

For the three months ended

Steel

Recycling

Fabrication

June 30, 2019

Operations

Operations

Operations

Other

Eliminations

Consolidated

Net sales - disaggregated revenue

External

$
2,040,756

$
262,826

$
240,439

$
99,641

$
-

$
2,643,662
External Non-U.S.

65,595

60,273

985

-

-

126,853
Other segments

81,834

333,667

-

121

(415,622)

-

2,188,185

656,766

241,424

99,762

(415,622)

2,770,515
Operating income (loss)

291,411

7,619

30,664

(49,153)
⁽¹⁾

4,491
⁽²⁾

285,032
Income (loss) before income taxes

274,155

6,500

29,466

(57,438)

4,277

256,960
Depreciation and amortization

63,150

11,525

2,974

3,262

-

80,911
Capital expenditures

43,575

12,173

3,019

26,353

-

85,120

Footnotes related to the three months ended June 30, 2019, segment results (in millions):

(1)
Corporate SG&A
$
(18.0)

(2)
Gross profit increase from intra-company sales
$
4.5

Company-wide equity-based compensation

(8.4)

Profit sharing

(21.3)

Other, net

(1.5)

$
(49.2)

Metals

Steel

For the six months ended

Steel

Recycling

Fabrication

June 30, 2020

Operations

Operations

Operations

Other

Eliminations

Consolidated

Net sales - disaggregated revenue

External

$
3,438,837

$
361,651

$
435,886

$
214,616

$
-

$
4,450,990
External Non-U.S.

130,896

86,788

300

431

-

218,415
Other segments

145,817

596,988

3,683

88

(746,576)

-

3,715,550

1,045,427

439,869

215,135

(746,576)

4,669,405
Operating income (loss)

456,437

(3,187)

56,318

(78,444)
⁽¹⁾

1,412
⁽²⁾

432,536
Income (loss) before income taxes

424,567

(8,349)

53,877

(119,685)

891

351,301
Depreciation and amortization

123,113

24,142

5,485

6,240

-

158,980
Capital expenditures

494,452

22,044

6,453

4,302

-

527,251

Footnotes related to the six months ended June 30, 2020, segment results (in millions):

(1)
Corporate SG&A
$
(31.7)

(2)
Gross profit increase from intra-company sales
$
1.4

Company-wide equity-based compensation

(17.9)

Profit sharing

(29.5)

Other, net

0.7

$
(78.4)

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~~STEEL DYNAMICS, INC.~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)~~

Note 9.8. Segment Information (Continued)



			Metals		Steel												Metals		Steel
For the six months ended	Steel		Recycling		Fabrication
June 30, 2019	Operations		Operations		Operations		Other			Eliminations			Consolidated
For the three-month period ended															Steel		Recycling		Fabrication
March 31, 2020															Operations		Operations		Operations		Other			Eliminations			Consolidated

Net sales - disaggregated revenue
External	$	4,085,247	$	548,551	$	468,868	$	212,889		$	-		$	5,315,555	$	1,860,585	$	234,833	$	220,935	$	120,342		$	-		$	2,436,695
External Non-U.S.		145,674		125,685		1,036		-			-			272,395		81,121		57,024		-		260			-			138,405
Other segments		157,429		719,575		189		369			(877,562)			-		74,446		336,882		506		88			(411,922)			-
		4,388,350		1,393,811		470,093		213,258			(877,562)			5,587,950		2,016,152		628,739		221,441		120,690			(411,922)			2,575,100
Operating income (loss)		600,489		24,581		51,287		(106,073)	⁽¹⁾		6,590	⁽²⁾		576,874		288,394		5,528		29,163		(46,355)	⁽¹⁾		(3,044)			273,686
Income (loss) before income taxes		567,174		22,005		48,817		(120,134)			6,161			524,023		273,555		4,305		27,918		(54,240)			(3,282)	⁽²⁾		248,256
Depreciation and amortization		125,662		22,964		5,941		6,518			-			161,085		62,427		11,972		2,748		3,112			-			80,259
Capital expenditures		87,251		18,815		5,012		28,478			-			139,556		193,273		18,223		4,089		1,950			-			217,535


Footnotes related to the six months ended June 30, 2019, segment results (in millions):
Footnotes related to the three months ended March 31, 2020, segment results (in millions):								Footnotes related to the three months ended March 31, 2020, segment results (in millions):

(1)	Corporate SG&A	$	(40.6)	(2)	Gross profit increase from intra-company sales	$	6.6	Corporate SG&A	$	(17.2)	(2)	Gross profit decrease from intra-company sales	$	(3.3)
	Company-wide equity-based compensation		(17.4)					Companywide equity-based compensation		(8.2)
	Profit sharing		(44.3)					Profit sharing		(21.3)
	Other, net		(3.8)					Other, net		0.3
		$	(106.1)						$	(46.4)

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-Looking Statements

This report contains some predictive statements about future events, including statements related to conditions in domestic or global economies, conditions in steel and recycled metals market places, Steel Dynamics' revenues, costs of purchased materials, future profitability and earnings, and the operation of new, existing or planned facilities. These statements, which we generally precede or accompany by such typical conditional words as "anticipate", "intend", "believe", "estimate", "plan", "seek", "project", or "expect", or by the words "may", "will", or "should", are intended to be made as "forward-looking", subject to many risks and uncertainties, within the safe harbor protections of the Private Securities Litigation Reform Act of 1995. These statements speak only as of this date and are based upon information and assumptions, which we consider reasonable as of this date, concerning our businesses and the environments in which they operate. Such predictive statements are not guarantees of future performance, and we undertake no duty to update or revise any such statements. Some factors that could cause such forward-looking statements to turn out differently than anticipated include: (1) ~~the effects of uncertain~~domestic and global economic ~~conditions;~~factors; (2) ~~the effects of~~global steelmaking overcapacity and steel imports, together with increased scrap prices; (3) pandemics, epidemics, widespread illness or other health issues, such as the ~~recent novel coronavirus outbreak (COVID-19); (3)~~COVID-19 pandemic; (4) the cyclical ~~and changing industrial demand; (4) changes in conditions in any~~nature of the steel industry and the industries we serve; (5) volatility and major fluctuations in prices and availability of scrap metal, scrap substitutes, and our potential inability to pass higher costs on to our customers; (6) cost and availability of electricity, natural gas, oil, or ~~scrap-consuming sectors~~other resources are subject to volatile market conditions; (7) compliance with and changes in environmental and remediation requirements; (8) increased regulation associated with the environment, climate change, greenhouse gas emissions and sustainability; (9) significant price and other forms of ~~the economy which affect demand~~competition from other steel producers, scrap processors and alternative materials; (10) availability of an adequate source of supply for our ~~products, including~~metals recycling operations; (11) cybersecurity threats and risks to the ~~strength~~security of our sensitive data and information technology; (12) the ~~non-residential~~implementation of our growth strategy; (13) litigation and ~~residential construction, automotive, manufacturing, appliance, energy,~~legal compliance, (14) unexpected equipment downtime or shutdowns; (15) governmental agencies may refuse to grant or renew some of our licenses and ~~other steel-consuming industries; (5) fluctuations in~~permits; (16) our senior unsecured credit facility contains, and any future financing agreements may contain, restrictive covenants that may limit our flexibility; and (17) the ~~cost~~impacts of key raw materials and supplies (including steel scrap, iron units, zinc, graphite electrodes, and energy costs) and our ability to pass on any cost increases; (6) the impact of domestic and foreign imports, including trade policy, restrictions, or agreements; (7) unanticipated difficulties in integrating or starting up new, acquired or planned businesses or assets; (8) risks and uncertainties involving product and/or technology development; and (9) occurrences of unexpected plant outages or equipment failures.impairment.

More specifically, we refer you to our more detailed explanation of these and other factors and risks that may cause such predictive statements to turn out differently, as set forth in our most recent Annual Report on Form 10-K under the headings Special Note Regarding Forward-Looking Statements and Risk Factors for the year ended December 31, ~~2019,~~2020, in our quarterly reports on Form 10-Q, or in other reports which we from time to time file with the Securities and Exchange Commission. These reports are available publicly on the Securities and Exchange Commission website, www.sec.gov, and on our website, www.steeldynamics.com under “Investors – SEC Filings.”

Description of the Business

We are one of the largest domestic steel producers and metal recyclers in the United States, based on ~~current~~ estimated ~~annual~~ steelmaking and coating ~~capability~~capacity of approximately 13 million tons and actual metals recycling volumes, with one of the most diversified ~~high-margin~~product and end-market portfolios in the domestic steel ~~product portfolios.~~industry. Our primary sources of revenue are from the manufacture and sale of steel products, the processing and sale of recycled ferrous and nonferrous metals, and the fabrication and sale of steel joists and deck products. We have three reportable segments: steel operations, metals recycling operations, and steel fabrication operations.

Operating Statement Classifications

Net Sales. Net sales from our operations are a factor of volumes shipped, product mix and related pricing. We charge premium prices for certain grades of steel, product dimensions, certain smaller volumes, and for value-added processing or coating of our steel products. Except for the steel fabrication operations, we recognize revenues from sales and the allowance for estimated returns and claims from these sales at the point in time control of the product transfers to the customer, upon shipment or delivery. Our steel fabrication operations recognize revenues over time based on completed fabricated tons to date as a percentage of total tons required for each contract.

Costs of Goods Sold. Our costs of goods sold represent all direct and indirect costs associated with the manufacture of our products. The principal elements of these costs are scrap and scrap substitutes (which represent the most significant single component of our consolidated costs of goods sold), steel substrate, direct and indirect labor and

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related benefits, alloys, zinc, transportation and freight, repairs and maintenance, utilities such as electricity and natural gas, and depreciation.

Selling, General and Administrative Expenses. Selling, general and administrative expenses consist of all costs associated with our sales, finance and accounting, and administrative departments. These costs include, among other items, labor and related benefits, professional services, insurance premiums, and property taxes. ~~Company-wide~~Companywide profit sharing and amortization of intangible assets are each separately presented in the statement of income.

Interest Expense, net of Capitalized Interest. Interest expense consists of interest associated with our senior credit facilities and other debt net of interest costs that are required to be capitalized during the construction period of certain capital investment projects.

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Other (Income) Expense, net. Other income consists of interest income earned on our temporary cash deposits and short-term investments; any other non-operating income activity, including income from non-consolidated investments accounted for under the equity method. Other expense consists of any non-operating costs, such as certain acquisition and financing expenses.

~~Impact of COVID-19 on Our Business~~

In March 2020, the World Health Organization categorized the novel coronavirus (COVID-19) as a pandemic, and since that time, efforts to slow the contagion have impacted global economies. Countries, including the United States, issued “shelter in place” orders, temporarily closing non-essential businesses and restricting social interactions in an effort to slow the spread of COVID-19.

Due to use of steel in the broad infrastructure and defense framework of the United States, our business operations are designated “essential” as part of the critical infrastructure of the states where we operate. As a result, all of our locations continued to operate during the first half of 2020 and continue to operate.

Our teams are our most valued priority, and we have implemented numerous additional process and procedural initiatives to ensure the health and safety of our people, their families, and our communities. We have adjusted schedules to support social distancing, provided additional and more frequent sanitizing applications, provided additional protective measures, and many other items.

While the economic impact of COVID-19 negatively impacted our results of operations during the second quarter of 2020, we are unable to specifically quantify that impact or predict the ultimate impact it may have on our business, financial condition, results of operations, or cash flow for the remainder of 2020. The extent to which our operations may continue to be impacted by COVID-19 will depend on future developments, which are highly uncertain and cannot be accurately predicted, including the possibility of a resurgence or further spread of the virus. In addition, the duration of the pandemic and its eventual impact on world economies is not known or estimable. The COVID-19 pandemic significantly reduced the supply of scrap and the demand for some of our steel products during the second quarter 2020, and its continuation could continue to have similar impact. Certain of our suppliers and customers, such as those in the automotive, energy, and related industries, have experienced, and could further experience, temporary shutdowns or significant demand reductions. Reduced demand for our products or lack of ferrous scrap raw material supply due to shutdowns or slowdowns in manufacturing businesses could adversely affect our volumes, selling prices, and margins. However, our low, highly variable cost structure, our diversified value-added product offerings, and our downstream manufacturing businesses which are able to provide base-load “pull-through” volume for our steel operations, support our continued cash flow prospects.

Results Overview

Our consolidated results for the ~~second~~first quarter of ~~2020~~2021 were ~~negatively impacted~~highlighted by ~~the COVID-19 pandemic from the related temporary closures~~record net sales of ~~numerous domestic steel consuming businesses.~~$3.5 billion, record operating income of $594.2 million, and record net income of $430.5 million. Domestic steel demand ~~lagged~~was strong during the ~~second~~first quarter ~~2020,~~2021, particularly within the automotive, construction and industrial sectors, driving ~~lower steel~~robust shipments and ~~selling values,~~scrap demand, as well as significantly ~~lower scrap flows for~~higher average selling prices across our entire operations, with increased metal spread in steel and metals recycling operations. ~~The~~Strong non-residential construction ~~market remained resilient, with construction~~ activity ~~largely intact during the quarter, resulting in steady second quarter 2020~~drove record fabrication shipments and ~~selling prices for our fabrication operations compared to second quarter 2019.~~backlogs.

Consolidated operating income ~~decreased $126.2~~increased $320.5 million, or ~~44%~~117%, to ~~$158.9~~$594.2 million for the ~~second~~first quarter ~~2020,~~2021, compared to the ~~second~~first quarter ~~2019. Second~~2020. First quarter ~~2020~~2021 net income attributable to Steel Dynamics, Inc. ~~decreased $118.8~~increased $243.2 million, or ~~61%~~130%, to $75.5 million, compared to the second quarter 2019, consistent with the decreased operating income, and due to the additional expenses and interest associated with our June 2020 refinancing of senior notes.

Consolidated operating income decreased $144.3 million, or 25%, to $432.5 million for the first half of 2020, compared to the first half of 2019. First half 2020 net income attributable to Steel Dynamics, Inc. decreased $135.8 million, or 34%, to $262.8a record $430.5 million, compared to the first ~~half of 2019,~~quarter 2020, consistent with the ~~decreased~~increased operating ~~income, and due to the additional expenses and interest associated with our June~~income.

Segment Operating Results 2021 vs. 2020 ~~refinancing of senior notes.~~(dollars in thousands)



	Three-Month Periods Ended March 31,
	2021		% Change		2020
Net sales:
Steel Operations Segment	$	2,642,847	31%	$	2,016,152
Metals Recycling Operations Segment		1,079,912	72%		628,739
Steel Fabrication Operations Segment		259,020	17%		221,441
Other		307,481	155%		120,690
		4,289,260			2,987,022
Intra-company		(744,663)			(411,922)
	$	3,544,597	38%	$	2,575,100

Operating income (loss):
Steel Operations Segment	$	637,411	121%	$	288,394
Metals Recycling Operations Segment		50,563	815%		5,528
Steel Fabrication Operations Segment		9,854	(66)%		29,163
Other		(90,913)	(96)%		(46,355)
		606,915			276,730
Intra-company		(12,716)			(3,044)
	$	594,199	117%	$	273,686

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~~Segment Operating Results 2020 vs. 2019 (~~~~dollars in thousands~~)

Three Months Ended June 30,

Six Months Ended June 30,

2020

% Change

2019

2020

% Change

2019
Net sales:

Steel Operations Segment
$
1,699,398

(22)%

$
2,188,185

$
3,715,550

(15)%

$
4,388,350
Metals Recycling Operations Segment

416,688

(37)%

656,766

1,045,427

(25)%

1,393,811
Steel Fabrication Operations Segment

218,428

(10)%

241,424

439,869

(6)%

470,093
Other

94,445

(5)%

99,762

215,135

1%

213,258

2,428,959

3,186,137

5,415,981

6,465,512
Intra-company

(334,654)

(415,622)

(746,576)

(877,562)

$
2,094,305

(24)%

$
2,770,515

$
4,669,405

(16)%

$
5,587,950

Operating income (loss):

Steel Operations Segment
$
168,043

(42)%

$
291,411

$
456,437

(24)%

$
600,489
Metals Recycling Operations Segment

(8,715)

(214)%

7,619

(3,187)

(113)%

24,581
Steel Fabrication Operations Segment

27,155

(11)%

30,664

56,318

10%

51,287
Other

(32,089)

35%

(49,153)

(78,444)

26%

(106,073)

154,394

280,541

431,124

570,284
Intra-company

4,456

4,491

1,412

6,590

$
158,850

(44)%

$
285,032

$
432,536

(25)%

$
576,874

Steel Operations Segment

Steel operations consist of our six ~~electric arc furnace~~operating EAF steel mills ~~producing sheet~~ and ~~long products~~our under-construction Southwest-Sinton Flat Roll Steel Division, producing steel from ferrous scrap and scrap substitutes, utilizing continuous casting, ~~and~~ automated rolling mills, ~~with~~and numerous value-added downstream steel coating and processing ~~and coating lines, as well as IDI, our liquid pig iron production facility that solely supplies our Butler Flat Roll Division.~~operations. Our steel operations sell ~~a diverse portfolio of value-added sheet and long products~~ directly to end-users, steel fabricators, and service centers. These products are used in ~~a wide variety of industries,~~numerous industry sectors, including the construction, automotive, manufacturing, transportation, heavy and agriculture equipment, and ~~agriculture,~~pipe and ~~energy~~tube (including OCTG) markets. Steel operations accounted for ~~78%~~71% and ~~76%~~75% of our consolidated external net sales during the ~~second~~first quarter of 2021 and 2020, ~~and 2019, respectively, and 76% during the first half of 2020 and 2019.~~respectively.

Steel Operations Segment Shipments (tons):



	Three Months Ended June 30,			Six Months Ended June 30,			Three Month Periods Ended March 31,
	2020	% Change	2019	2020	% Change	2019	2021	% Change	2020

Total shipments	2,518,019	(9)%	2,769,358	5,365,201	(2)%	5,453,769	2,822,274	(1)%	2,847,182
Intra-segment shipments	(257,219)		(280,024)	(510,696)		(527,427)	(286,296)		(253,477)
Steel Operations Segment shipments	2,260,800	(9)%	2,489,334	4,854,505	(1)%	4,926,342	2,535,978	(2)%	2,593,705

External shipments	2,152,856	(10)%	2,386,851	4,648,020	(2)%	4,734,060	2,410,817	(3)%	2,495,164

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Steel Operations Segment Results ~~2020~~First Quarter 2021 vs. ~~2019~~First Quarter 2020

~~The COVID-19 pandemic negatively impacted~~During the first quarter of 2021, steel demand remained robust and product pricing gained momentum across our entire steel operations segment. Historically low customer inventories, coupled with continued strong steel demand from the automotive, construction, and industrial sectors, resulted in higher selling prices during the ~~second~~ quarter, ~~of 2020. The temporary closure of numerous steel consuming businesses such as automotive manufacturers and the related supply change drove lower selling prices and shipments,~~ particularly ~~for~~within our sheet steel products. ~~Conversely, construction related steel demand remained steady. However, steel~~First quarter 2021 average selling prices increased 35%, or $269 per ton, compared to first quarter 2020. Steel operations segment shipments decreased ~~only 9%~~2% in the ~~second~~first quarter ~~2020,~~2021, as compared to record quarterly shipments achieved during the same period in ~~2019, and decreased only 12% from record first quarter~~ 2020. ~~Second quarter 2020 average selling prices decreased 14%, or $125 per ton, compared to 2019, reflecting the decreased steel demand during the quarter.~~ Net sales for the steel operations ~~decreased 22%~~increased 31% in the ~~second~~first quarter ~~2020~~2021 when compared to the same period in ~~2019, due to decreases in shipments and overall steel selling prices. Net sales for the steel operations decreased 15% in the first half of~~ 2020, ~~when compared to the same period in 2019,~~ due to the ~~decrease~~35% increase in average steel ~~demand due to the COVID-19 pandemic, negatively impacting both steel shipments and average~~ selling prices ~~primarily in the second quarter of 2020.~~and steady volume.

Metallic raw materials used in our electric arc furnaces represent our single most significant steel manufacturing cost, generally comprising approximately 5055 to ~~60%~~65% of our steel mill operations’ manufacturing costs. Our metallic raw material cost per net ton consumed in our steel operations ~~decreased $50,~~increased $105, or ~~16%~~39%, in the ~~second~~first quarter ~~2020,~~2021, compared to the same period in ~~2019,~~2020, consistent with overall ~~decreased~~increased domestic scrap ~~pricing. In the first half of 2020, our metallic raw material cost per ton decreased $61, or 18% compared to the same period in 2019.~~pricing noted below.

As a result of average selling prices ~~decreasing~~increasing more than scrap costs, metal spread (which we define as the difference between average steel mill selling prices and the cost of ferrous scrap consumed in our steel mills) ~~decreased 13%~~increased 32% in the ~~second~~first quarter ~~2020~~2021 compared to the ~~second~~first quarter ~~2019.~~2020. Due to this metal spread ~~contraction, coupled with the decrease in shipments,~~expansion, operating income for the steel operations ~~decreased 42%~~increased 121%, to ~~$168.0~~a record $637.4 million, in the ~~second~~first quarter ~~2020,~~2021, compared to the same period in 2019. First half 2020 operating income decreased 24%, to $456.4 million, compared to the first half of 2019, due primarily to decreased metal spreads and to a lesser extent steel shipping volumes, which decreased only 2%.2020.

Metals Recycling Operations Segment

Metals recycling operations ~~consist of our~~includes both ferrous and nonferrous scrap metal processing, transportation, marketing, ~~and~~ brokerage, ~~services, strategically located primarily in close proximity to our steel mills~~ and ~~other end-user scrap consumers throughout largely the eastern half of the United States. In addition, our metals recycling operations designs, installs, and manages customized~~ scrap management ~~programs for industrial manufacturing companies at hundreds of locations throughout North America.~~services. Our steel mills utilize a large portion of the ferrous scrap sold by our metals recycling operations as raw material in our steelmaking operations,

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and the remainder is sold to other consumers, such as other steel manufacturers and foundries. In the ~~second~~first quarter ~~2020, 75%~~2021, 69% of the metals recycling operations ferrous scrap was sold to our own steel mills (67% in first quarter 2020), as ~~scrap flow slowed and~~ our steel mills ~~were able~~utilization increased 9% to ~~maintain 79% utilization compared to 55% estimated domestic steel mill utilization.~~93% in the first quarter of 2021. Our metals recycling operations accounted for 7%13% and ~~12%~~11% of our consolidated external net sales during the ~~second~~first quarter of ~~2020~~2021 and ~~2019, respectively, and 10% and 12% during the first half of~~ 2020, ~~and 2019,~~ respectively.

Metals Recycling Operations Segment Shipments:



	Three Months Ended June 30,			Six Months Ended June 30,			Three Month Periods Ended March 31,
	2020	% Change	2019	2020	% Change	2019	2021	% Change	2020
Ferrous metal (gross tons)
Total	802,070	(33)%	1,189,679	1,994,214	(16)%	2,361,040	1,395,843	17%	1,192,144
Inter-company	(604,100)	(21)%	(764,202)	(1,402,593)	(10)%	(1,552,722)	(958,661)	20%	(798,493)
External shipments	197,970	(53)%	425,477	591,621	(27)%	808,318	437,182	11%	393,651

Nonferrous metals (thousands of pounds)
Total	166,914	(37)%	266,222	438,992	(21)%	558,260	280,809	3%	272,078
Inter-company	(39,540)		(34,671)	(80,218)		(73,779)	(43,552)		(40,678)
External shipments	127,374	(45)%	231,551	358,774	(26)%	484,481	237,257	3%	231,400

Metals Recycling Operations Segment Results ~~2020~~First Quarter 2021 vs. ~~2019~~First Quarter 2020

Our metals recycling operations ~~were also negatively impacted during~~benefitted from strong steel market demand and increased selling prices for recycled scrap in the ~~second~~first quarter of ~~2020 by the COVID-19 pandemic. Decreased manufacturing activity~~2021. Domestic steel production continued to rise during the quarter, ~~primarily temporary closures of domestic automotive manufacturers and their related supply chain, resulted in reduced scrap flows. In addition,~~with domestic steel mill utilization rates ~~declined~~increasing 5% to approximately 77% in the first quarter 2021 from the sequential fourth quarter 2020, and significantly ~~resulting in decreased ferrous scrap demand.~~higher than the COVID-19 impacted utilization rates of mid 2020. Net sales ~~decreased 37%~~increased 72% during the ~~second~~first quarter of ~~2020~~2021 compared to the same period in ~~2019,~~2020, driven ~~primarily~~ by ~~decreased shipments.~~increased shipments, including

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those from the Mexican scrap company acquired in August 2020, and higher average selling prices. Ferrous ~~shipments to our own steel mills decreased 21% in~~scrap average selling prices increased 60% during the ~~second~~first quarter ~~2020,~~2021 compared to the same period in ~~2019, as our quarterly steel mill utilization percentage decreased from 89% to 79% year over year. Ferrous scrap average selling prices decreased 3% during the second quarter~~ 2020, ~~compared to the same period in 2019,~~ while average nonferrous scrap prices increased 7%47%. Ferrous metal spread (which we define as the difference between average selling prices and the cost of purchased scrap) ~~however~~ increased ~~28%~~52%, ~~as selling prices decreased less than unprocessed scrap procurement costs,~~ while nonferrous metal spread decreased 21%. Metals recycling operations operating income decreased 214% to a loss of $8.7 million in the second quarter 2020 compared to the second quarter 2019 operating income of $7.6 million, due primarily to the decrease in ferrous and nonferrous shipments.

~~Net sales for our metals recycling operations decreased 25% in~~increased 71% during the first ~~half of 2020 as~~quarter 2021 compared to the same period in ~~2019, driven by decreased shipments and pricing. Ferrous scrap average selling prices decreased 6% during the first half of 2020 compared~~2020. This resulted in metals recycling operations operating income increasing significantly to ~~the same period in 2019, while nonferrous average selling prices decreased 3%. Nonferrous metal spread decreased 24%, while ferrous metal spread increased 9%~~$50.5 million in the first ~~half of 2020~~quarter 2021 compared to the first ~~half of 2019. Metals recycling operations operating loss in the first half of~~quarter 2020 ~~of $3.2 million decreased 113% from the first half of 2019~~ operating income of ~~$24.6 million, due primarily to decreased ferrous and nonferrous shipments, most notably in the second quarter 2020.~~$5.5 million.

Steel Fabrication Operations Segment

Steel fabrication operations include ~~our~~seven New Millennium Building Systems joist and deck plants located throughout the United States and in Northern Mexico. Revenues from these plants are generated from the fabrication of steel joists, trusses, girders and steel deck used within the ~~non-~~

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~~residential~~non-residential construction industry. Steel fabrication operations accounted for ~~10%~~7% and 9% of our consolidated external net sales during the ~~second~~first quarter of ~~2020~~2021 and ~~2019, respectively, and 9% and 8% during the first half of~~ 2020, ~~and 2019,~~ respectively.

Steel Fabrication Operations Segment Results ~~2020~~First Quarter 2021 vs. ~~2019~~First Quarter 2020

Our steel fabrication operations continue to benefit from a robust non-residential construction market, as order activity remains strong, with customer order backlogs at a record level at the end of the first quarter 2021. Net sales for the steel fabrication operations ~~decreased 10%~~increased 17% during the ~~second~~first quarter ~~2020~~2021 compared to the same period in ~~2019,~~2020, as average selling prices ~~decreased 11%~~increased 4%, or ~~$174~~$50 per ton, while shipments increased ~~2%. Net sales for the segment decreased 6% during the first half of 2020, compared~~13% to the same period in 2019, as shipments increased 7%, and average selling prices decreased 13%, or $196 per ton. Our steel fabrication operations continue to leverage our national operating footprint. Market demand, orders and backlog continued to be strong in the second quarter 2020, indicating resilience of the non-residential construction market during the COVID-19 pandemic.a quarterly record 184,000 tons.

The purchase of various steel products is the largest single cost of production for our steel fabrication operations, generally representing approximately two-thirds of the total cost of manufacturing. The average cost of steel consumed ~~decreased 16%~~increased 24% in the ~~second~~first quarter ~~2020,~~2021, as compared to the same period in ~~2019.~~2020, consistent with increased steel selling prices in our steel operations. As a result of steel costs ~~decreasing less~~per ton increasing more than selling prices per ton, metal spread (which we define as the difference between average selling prices and the cost of purchased steel) decreased 5%19% in the ~~second~~first quarter ~~2020~~2021 compared to the same period in ~~2019, and~~2020. As a result of this metal spread compression, operating income

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decreased ~~11%~~66% to ~~$27.2~~$9.9 million in the ~~second~~first quarter ~~2020~~2021 compared to the same period in ~~2019. For~~2020, despite the ~~first half of 2020, operating income increased 10% to $56.3 million compared to the first half of 2019, as increased shipments more than offset the 2% decrease~~13% increase in ~~metal spread.~~shipments.

Other Operations

~~Second Quarter~~ Consolidated Results ~~2020~~First Quarter 2021 vs. ~~2019~~First Quarter 2020

Selling, General and Administrative Expenses. Selling, general and administrative expenses of ~~$109.3~~$149.8 million during the ~~second~~first quarter ~~2020 were comparable to~~2021 increased 33% from the ~~$106.3~~$112.9 million during the ~~second~~first quarter ~~2019,~~2020, representing ~~5% and~~ 4% of net sales during each period, ~~respectively.~~consistent with increased profitability. Profit sharing expense during the ~~second~~first quarter of ~~2020~~2021 of ~~$9.1~~$48.8 million was ~~down 60%~~up 128% from the ~~$22.9~~$21.5 million during the same period in ~~2019.~~2020. The ~~company-wide~~companywide profit sharing plan represents 8% of pretax earnings; therefore, our ~~lower second~~higher first quarter ~~2020~~2021 earnings resulted in ~~lower~~higher profit sharing.

Interest Expense, net of Capitalized Interest. During the ~~second~~first quarter ~~2020,~~2021, interest expense of ~~$27.7~~$17.3 million decreased ~~14%~~38% from ~~$32.3~~$28.0 million during the ~~second~~first quarter of ~~2019,~~2020, due to decreased interest rates from our June 2020 and October 2020 refinancing of $1.6 billion of high yield senior notes with lower rate interest senior notes, and increased capitalized interest in ~~2020~~2021 in conjunction with construction of our new ~~flat roll steel mill currently under construction in Sinton, Texas.~~Southwest-Sinton Flat Roll Division.

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Income Tax Expense. ~~Second~~First quarter ~~2020~~2021 income tax expense of ~~$24.3~~$128.1 million, at an effective income tax rate of ~~23.6%~~22.6%, was ~~down 60%~~up 123% from the ~~$60.2~~$57.4 million, at an effective income tax rate of ~~23.4%, during the second quarter 2019, consistent with decreased income before income taxes.~~

~~First Six Months Consolidated Results 2020 vs. 2019~~

~~Selling, General and Administrative Expenses.~~ Selling, general and administrative expenses of $222.2 million during the first half of 2020 were comparable to the $217.3 million during the first half of 2019, representing 5% and 4% of net sales, respectively. Profit sharing expense during the first half of 2020 of $30.5 million decreased 34% from the $46.5 million during the same period in 2019. The company-wide profit sharing plan represents 8% of pretax earnings; therefore our lower first half 2020 earnings resulted in lower profit sharing.

~~Interest Expense, net of Capitalized Interest.~~ During the first half of 2020, interest expense of $55.7 million decreased 12% from $63.4 million during the first half of 2019 due to increased capitalized interest in 2020 in conjunction with our new electric arc furnace flat roll steel mill currently under construction in Sinton, Texas.

~~Income Tax Expense.~~ ~~First half 2020 income tax expense of $81.7 million, at an effective income tax rate of 23.3%, was down 33% from the $122.5 million, at an effective income tax rate of 23.4%~~23.1%, during the first ~~half of 2019,~~quarter 2020, consistent with ~~decreased~~increased income before income taxes.

Liquidity and Capital Resources

Capital Resources and Long-term Debt. Our business is capital intensive and requires substantial expenditures for, among other things, the purchase and maintenance of equipment used in our steel, metals recycling, and steel fabrication operations, and to remain in compliance with environmental laws. Our short-term and long-term liquidity needs arise primarily from working capital requirements, capital expenditures, currently including those related to our ~~flat roll steel mill under construction in Sinton, Texas,~~new Southwest-Sinton Flat Roll Division, principal and interest payments related to our outstanding indebtedness (no significant principal payments until 2024), dividends to our shareholders, potential stock repurchases, and acquisitions. We have met these liquidity requirements primarily with cash provided by operations and long-term borrowings, and we also have availability under our unsecured Revolver. Our liquidity at ~~June 30, 2020,~~March 31, 2021, is as follows (in thousands):



��	Cash and equivalents	$	1,496,458
	Short-term investments		69,546
	Revolver availability		1,188,191
	Total liquidity	$	2,754,195	Cash and equivalents	$	1,245,165
				Revolver availability		1,188,119
				Total liquidity	$	2,433,284

Our total outstanding debt decreased ~~$23.7~~$5.2 million during the first ~~half~~quarter of ~~2020, primarily due to repayment of revolving debt at two of our consolidated joint ventures.~~2021. Our total long-term debt to capitalization ratio (representing our long-term debt, including current maturities, divided by the sum of our long-term debt, redeemable noncontrolling interests, and our total stockholders’ equity) was 39.6% and ~~40.2%~~41.6% at ~~June 30, 2020,~~March 31, 2021, and December 31, ~~2019,~~2020, respectively.

~~In June 2020, we issued $400.0 million of 2.400% notes due 2025 and $500.0 million of 3.250% notes due 2031. The net proceeds from these notes~~ were used to fund the June 2020 call and redemption of the $400.0 million outstanding principal amount of the company’s 5.250% senior notes due 2023 and the $500.0 million outstanding principal amount of the company’s 5.500% senior notes due 2024. We recorded expenses related to premiums, write off of unamortized debt issuance costs, and other expenses of approximately $22.8 million, which are reflected in other expenses in the consolidated statements of income for the second quarter and first half 2020.

Our unsecured credit agreement has a senior unsecured revolving credit facility (Facility), which provides a $1.2 billion unsecured Revolver, and matures in December 2024. Subject to certain conditions, we have the opportunity to increase the Facility size by $500.0 million. The unsecured Revolver is available to fund working capital, capital expenditures, and other general corporate purposes. The Facility contains financial covenants and other covenants pertaining to our ability to incur indebtedness and permit liens on property. Our ability to borrow funds within the terms of the unsecured Revolver is dependent upon our continued compliance with the financial and other covenants. At ~~June 30, 2020,~~March 31, 2021, we had $1.2 billion of availability on the Revolver, ~~$11.8~~$11.9 million of outstanding letters of credit and other obligations which reduce availability, and there were no borrowings outstanding.

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The financial covenants under our Facility state that we must maintain an interest coverage ratio of not less than 2.50:1.00. Our interest coverage ratio is calculated by dividing our last-twelve-months (LTM) consolidated ~~adjusted~~ Adjusted

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EBITDA (earnings before interest, taxes, depreciation, amortization, and certain other non-cash transactions as allowed in the Facility) by our LTM gross interest expense, less amortization of financing fees. In addition, a debt to capitalization ratio of not more than 0.60:1.00 must be maintained. At ~~June 30, 2020,~~March 31, 2021, our interest coverage ratio and debt to capitalization ratio were ~~9.45:~~13.90:1.00 and ~~0.40:~~0.39:1.00, respectively. We were, therefore, in compliance with these covenants at ~~June 30, 2020,~~March 31, 2021, and we anticipate we will continue to be in compliance during the next twelve months.

Working Capital. We generated cash flow from operations of ~~$697.3~~$262.2 million in the first ~~half~~quarter of ~~2020~~2021 compared to ~~$543.0~~$211.3 million in the comparable ~~2019~~2020 period. Operational working capital (representing amounts invested in trade receivables and inventories, less current liabilities other than income taxes payable and debt) ~~decreased $223.7~~increased $411.0 million (25%), to ~~$1.4~~$2.1 billion at ~~June 30, 2020,~~March 31, 2021, due primarily to ~~decreased inventories and~~ increased accounts ~~payable, generating operating cash flows during the first half of 2020.~~receivable and inventory, consistent with increased net sales and inventory costs.

Capital Investments. During the first ~~half~~quarter of ~~2020,~~2021, we invested ~~$527.3~~$309.9 million in property, plant and equipment, primarily within our steel operations segment, compared with ~~$139.6~~$217.5 million invested during the same period in ~~2019.~~2020. The increase in the first ~~half~~quarter of ~~2020~~2021 versus the same period in ~~2019~~2020 relates to our new ~~flat roll steel mill under construction~~Southwest-Sinton Flat Roll Steel Division, which represented $254.4 million in ~~Sinton, Texas.~~2021. We entered ~~2020~~2021 with ~~sufficient~~ample liquidity of ~~$2.8~~$2.6 billion to provide for our planned ~~2020~~2021 capital requirements, including those necessary to ~~construct the~~finish construction of our new steel mill in Sinton, ~~steel mill.~~Texas. For the remainder of ~~2020,~~2021, we are planning for capital investments to be roughly ~~between $800 million and $850~~$650 to $700 million, of which the new ~~flat roll~~ steel mill in Sinton, Texas, represents approximately ~~$700 million to $750~~$535 million.

Cash Dividends. As a reflection of continued confidence in our current and future cash flow generation ability and financial position, we increased our quarterly cash dividend by 4% to ~~$0.25~~$0.26 per share in the first quarter ~~2020~~2021 (from ~~$0.24~~$0.25 per share in ~~2019)~~2020), resulting in declared cash dividends of ~~$105.1~~$54.9 million during the first ~~half~~quarter of ~~2020,~~2021, compared to ~~$106.3~~$52.6 million during the same period in 2019. The decrease in declared cash dividends period over period was due to stock repurchases which took place throughout 2019 and into the first quarter of 2020, reducing our common stock shares outstanding.2020. We paid cash dividends of ~~$104.1~~$52.7 million and ~~$95.7~~$51.5 million during the first ~~half~~quarters of ~~2020~~2021 and ~~2019,~~2020, respectively. Our board of directors, along with executive management, approves the payment of dividends on a quarterly basis. The determination to pay cash dividends in the future is at the discretion of our board of directors, after taking into account various factors, including our financial condition, results of operations, outstanding indebtedness, current and anticipated cash needs and growth plans.

Other. In ~~August 2018,~~February 2020 our board of directors authorized a share repurchase program of up to ~~$750~~$500 million of our common stock. ~~In February 2020, our board authorized an additional share repurchase program of up to $500 million.~~ Under the share repurchase ~~programs,~~program, purchases ~~will~~ take place as and when we determine in open market or private transactions made based upon the market price of our common stock, the nature of other investment opportunities or growth projects, our cash flows from operations, and general economic conditions. The share repurchase ~~programs do~~program does not require us to acquire any specific number of shares, and may be modified, suspended, extended or terminated by us at any time. ~~We acquired 4.4 million shares of our common stock for $106.5 million in the first half of 2020, all within~~The share repurchase program does not have an expiration date. There were no share repurchases during the first quarter ~~fully expending~~of 2021, and $106.5 million of share repurchases during the ~~remaining purchases available under the 2018 program, leaving~~first quarter of 2020. As of March 31, 2021, we have $444.0 million remaining available to purchase under the 2020 share repurchase program.

Our ability to meet our debt service obligations and reduce our total debt will depend upon our future performance which, in turn, will depend upon general economic, financial, business and ~~the~~ ongoing COVID-19 ~~pandemic~~ conditions, along with competition, legislation and regulatory factors that are largely beyond our control. In addition, we cannot assure that our operating results, cash flows, access to credit markets and capital resources will be sufficient for repayment of our indebtedness in the future. We believe that based upon current levels of operations and anticipated growth, cash flows from operations, together with other available sources of funds, including borrowings under our Revolver, if necessary, will be adequate for the next twelve months for making required payments of principal and interest on our indebtedness, funding working capital requirements, and anticipated capital expenditures noted ~~above~~.above.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Commodity Risk

In the normal course of business, we are exposed to the market risk and price fluctuations related to the sale of our products and to the purchase of raw materials used in our operations, such as metallic raw materials, electricity, natural gas and its transportation services, fuel, air products, zinc, and electrodes. Our risk strategy associated with product sales has generally been to obtain competitive prices for our products and to allow operating results to reflect market price movements dictated by supply and demand.

Our risk strategy associated with the purchase of raw materials utilized within our operations has generally been to make some commitments with suppliers relating to future expected requirements for some commodities such as electricity, water, natural gas and

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its transportation services, fuel, air products, zinc, and electrodes. Certain of these commitments contain provisions which require us to “take or pay” for specified quantities without regard to actual usage for periods of generally up to 5 years for physical commodity requirements and commodity transportation requirements, with some extending beyond, and for up to 1311 remaining years for air products. We utilized such “take or pay” requirements during the past three years under these contracts, except for certain air products at our idle Minnesota ironmaking operations. We believe that production requirements will be such that consumption of the products or services purchased under these commitments will occur in the normal production process, other than certain air products related to our Minnesota ironmaking operations while idle. We also purchase electricity consumed at our Butler Flat Roll Division pursuant to a contract which extends through December ~~2020,~~2022, which establishes an agreed fixed-rate energy charge per Mill/kWh consumed for each year through the expiration of the agreement.

In our metals recycling and steel operations, we have certain fixed price contracts with various customers and suppliers for future delivery of nonferrous and ferrous metals. Our risk strategy has been to enter into base metal financial contracts with the goal to protect the profit margin, within certain parameters, that was contemplated when we entered into the transaction with the customer or vendor. At ~~June 30, 2020,~~March 31, 2021, we had a cumulative unrealized ~~loss~~gain associated with these financial contracts of ~~$1.3~~$14.5 million, substantially all of which have a settlement date within the next twelve months. We believe the customer contracts associated with the financial contracts will be fully consummated.

ITEM 4. CONTROLS AND PROCEDURES

(a)

Evaluation of Disclosure Controls and Procedures

As required, we carried out an evaluation, under the supervision and with the participation of our principal executive officer and principal financial officer, of the effectiveness of our disclosure controls and procedures, as defined in rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the Exchange Act). Based on this evaluation, our principal executive officer and principal financial officer concluded that, as of ~~June 30, 2020,~~March 31, 2021, the end of the period covered by this quarterly report, our disclosure controls and procedures were designed to provide and were effective to provide reasonable assurance that the information required to be disclosed by us in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the applicable rules and forms, and that it is accumulated and communicated to our management, including our principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

(b)

Changes in Internal Controls Over Financial Reporting

No changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) occurred during the fiscal quarter ended ~~June 30, 2020,~~March 31, 2021, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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PART II OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

We are involved in various litigation matters, including administrative proceedings, regulatory proceedings, governmental investigations, environmental matters, and commercial and construction contract disputes, none of which are currently expected to have a material impact on our financial condition, results of operations, or liquidity.

We may also be involved from time to time in various governmental investigations, regulatory proceedings or judicial actions seeking penalties, injunctive relief, and/or remediation under federal, state and local environmental laws and regulations. The United States EPA has conducted such investigations and proceedings involving us, in some instances along with state environmental regulators, under various environmental laws, including RCRA, CERCLA, the Clean Water Act and the Clean Air Act. Some of these matters have resulted in fines or penalties, ~~for~~exclusive of interest and costs, which ~~a total of $495,000 is recorded~~did not exceed $1 million in ~~our financial statements~~aggregate, as of ~~June 30, 2020.~~March 31, 2021.

ITEM 1A. RISK FACTORS

~~Except as stated below, no~~No material changes have occurred to the indicated risk factors as disclosed in our Annual Report on Form 10-K for the year ended December 31, ~~2019. Additionally, the impact of the COVID-19 pandemic could also exacerbate other risks discussed in the Risk Factors section of our Annual Report on Form 10-K for the year ended December 31, 2019.~~

Pandemics, epidemics, widespread illness or other health issues, such as the recent novel coronavirus outbreak (COVID-19) may adversely affect our business, results of operations, financial condition, cash flows, liquidity, and stock price.

The COVID-19 pandemic has and may continue to adversely affect our business, results of operations, financial condition, cash flows, liquidity and stock price. Other pandemics, epidemics, widespread illness or other health issues could also adversely affect us. The COVID-19 pandemic has resulted in various government actions globally, including United States federal and state governmental actions designed to slow the spread of the virus and its impacts. These actions have included quarantines, “shelter in place,” “stay at home” and “social distancing” orders, business shutdowns or restrictions, travel restrictions and other mitigation efforts, which, among other things, have impacted and may further impact demand for our products, as well as our supply chain. These measures, along with further voluntary measures by businesses and individuals, have impacted and may further impact our working conditions, productivity and operations, as well as those of our customers, suppliers, vendors and business partners. These mitigation measures have also adversely affected and may continue to adversely affect the United States and world economies, resulting in increased unemployment in the United States and the communities in which we operate. However, due to our variable compensation system that rewards productivity, as well as our low fixed cost structure, we have not and do not expect in the future to significantly reduce our workforce due to the COVID-19 pandemic.

We have been identified by governmental authorities as a critical infrastructure industry and have been deemed an essential business in all of the states in which we operate. This has permitted us to continue to advance our commitment to our customers and meet their demand by operating our business consistent with federal guidelines and state and local orders, including social distancing guidelines. Our teams are our most valued priority, and, we have implemented numerous process and procedural initiatives to ensure the health and safety of our people, their families and our communities. We have adjusted schedules to support social distancing, provided additional and more frequent sanitizing applications, provided additional protective measures, and many other items.. These health and safety initiatives have not and are not expected to have a material effect on our operations, but further required limitations and restrictions could adversely affect our results of operations.

Additionally, while we have not currently curtailed our operations, a prolonged COVID-19 pandemic could further materially reduce demand for our products and thus, reduce the productivity of our operations and have a negative impact on our business, results of operations, financial condition and cash flows. Certain of our suppliers and customers, such as those in the automotive, energy and related industries, have experienced temporary shutdowns or significant demand reductions, adversely affecting our operations. Further reduced demand for our products or raw material supply availability due to shutdowns or slowdowns in businesses could further adversely affect our volumes and margins, results of operations, financial condition and cash flows. Prolonged shutdowns of critical equipment suppliers, or their suppliers, to our planned capital improvements, including our under construction Sinton, Texas Flat Roll Steel Mill expected to commence operations mid-year 2021, could, if they were to occur, cause our planned expansions to be delayed. The COVID-19 pandemic has also caused volatility in the financial and capital markets, which has adversely affected our stock price and may adversely affect our ability to access and the costs associated with accessing the debt or equity capital markets, which could adversely affect our liquidity, which as of June 30, 2020 was approximately $2.8 billion, consisting of approximately $1.4 billion in cash and cash equivalents and short-term investments, and $1.2 billion in availability under our undrawn credit facility.

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There is considerable uncertainty regarding the economic and industry impacts, including duration, from the COVID-19 pandemic and the measures introduced to curtail its spread and its impacts. Although these highly uncertain future impacts cannot be reasonably estimated at this time, general economic conditions, business closures, slow payments from customers, increased bankruptcies, and labor restrictions may adversely affect our business, results of operations, financial condition, cash flows, liquidity and stock price. Additionally, the impact of the COVID-19 pandemic could also exacerbate other risks to us, including those discussed in the Risk Factors section of our Annual Report on Form 10-K for the year ended December 31, 2019.2020.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

None.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4. MINE SAFETY DISCLOSURES

Information required to be furnished pursuant to Item 4 concerning mine safety disclosure matters, if applicable, by Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act and Item 104 of Regulation S-K (17 CFR 229.104), is included in Exhibit ~~95 to this quarterly report. There are no mine safety disclosures to report for the three months ended June 30, 2020, therefore, no Exhibit 95 is required.~~None.

ITEM 5. OTHER INFORMATION

None.

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ITEM 6. EXHIBITS

Reference is made to the Exhibit Index preceding the signature page hereto, which Exhibit Index is hereby incorporated into this item.

EXHIBIT INDEX

HIDDEN_ROW
Articles of Incorporation

3.1	Amended and Restated Articles of Incorporation of Steel Dynamics, Inc., reflecting all amendments thereto through May 17, 2018, incorporated herein by reference from Exhibit 3.1e to our Form 10-Q filed August 9, 2018.

3.2	Amended and Restated Bylaws of Steel Dynamics, Inc., reflecting all amendments thereto through October 17, 2018, incorporated herein by reference from Exhibit 3.2d to our Form 10-Q filed November 7, 2018.

Executive Officer Certifications

31.1*	Certification of Chief Executive Officer required by Item 307 of Regulation S-K as promulgated by the Securities and Exchange Commission and pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2*	Certification of Chief Financial Officer required by Item 307 of Regulation S-K as promulgated by the Securities and Exchange Commission and pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1*	Certification of Chief Executive Officer Pursuant to 18 U.S.C Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2*	Certification of Chief Financial Officer Pursuant to 18 U.S.C Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

~~Instruments Defining the Rights of Security Holders, Including Indentures~~

~~4.35~~	Second Supplemental Indenture, dated as of June 5, 2020, relating to our issuance of $400 million 2.400% Notes due 2025 and $500 million 3.250% Notes due 2031, between Steel Dynamics, Inc. and Wells Fargo Bank, National Association, as Trustee, incorporated herein by reference from Exhibit 4.2 to our Form 8-K filed June 5, 2020.

~~4.36~~	~~Form of 2.400% Notes due 2025 (included in Exhibit 4.35), incorporated herein by reference from Exhibit 4.3 to our Form 8-K filed June 5, 2020.~~

~~4.37~~	~~Form of 3.250% Notes due 2031 (included in Exhibit 4.35), incorporated herein by reference from Exhibit 4.4 to our Form 8-K filed June 5, 2020.~~

~~Other~~

95**	~~Mine Safety Disclosures.~~

XBRL Documents

101.INS*	XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

101.SCH*	Inline XBRL Taxonomy Extension Schema Document

101.CAL*	Inline XBRL Taxonomy Extension Calculation Document

101.DEF*	Inline XBRL Taxonomy Definition Document

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101.LAB*	Inline XBRL Taxonomy Extension Label Document

101.PRE*	Inline XBRL Taxonomy Presentation Document

~~104~~104*	Cover Page Interactive Data File ~~– the cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the~~(formatted as Inline XBRL ~~document.~~and contained in Exhibit 101)

*	Filed concurrently herewith

**	~~Inapplicable for purposes of this report~~

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

~~August 10, 2020~~April 29, 2021

		STEEL DYNAMICS, INC.

	By:	/s/ Theresa E. Wagler
		Theresa E. Wagler
		Executive Vice President and Chief Financial Officer
		(Principal Financial Officer and Principal Accounting Officer)

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Footnotes related to the three months ended June 30, 2020, segment results (in millions):

(1)	Corporate SG&A	$	(14.5)	(2)	Gross profit increase from intra-company sales	$	4.5
	Company-wide equity-based compensation		(9.7)
	Profit sharing		(8.2)
	Other, net		0.3
		$	(32.1)

(3)	Cash and equivalents	$	1,418.4	(4)	Elimination of intra-company receivables	$	(35.5)
	Short-term investments		69.5		Elimination of intra-company debt		(6.5)
	Accounts receivable		11.4		Other		(6.9)
	Inventories		26.9			$	(48.9)
	Property, plant and equipment, net		148.2
	Intra-company debt		6.5
	Other		38.1
		$	1,719.0


Footnotes related to the six months ended June 30, 2020, segment results (in millions):

(1)	Corporate SG&A	$	(31.7)	(2)	Gross profit increase from intra-company sales	$	1.4
	Company-wide equity-based compensation		(17.9)
	Profit sharing		(29.5)
	Other, net		0.7
		$	(78.4)