STLD - Steel Dynamics Ideally Positioned To Leverage Soaring Steel Prices

• Steel prices have surged since management's fourth quarter mid-quarter update, leading to near-record prices as capacity utilization remains restrained.
• There's always a lag in Steel Dynamics benefiting from higher prices, but the fourth quarter was nevertheless much stronger than expected, primarily on better margins.
• Capacity expansion and mill restarts should lead to much lower prices in 2H'21, but Steel Dynamics' high efficiency and high utilization have it ideally placed to benefit now.
• I believe Steel Dynamics shares are undervalued today, but that 2H'21 outlook is critical to full-year expectations.

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