Products and Markets - Steel Dynamics, Inc.

Products and Marketssteel operations2008 shipments: 5.6 million tonsSTEEL SHIPMENTSBY TYPE/OPERATING DIVISIONFLAT ROLL SHIPMENTSBY PRODUCT TYPEPICKLEDCOLD ROLLEDFLAT-ROLLEDSTEEL 56%The Techs 15%20% STRUCTURAL STEELStructural and Rail Division10%SBQ/MBQ STEELEngineered BarProducts DivisionCold-rolledGalvanized30%5%6%PAINTED8%GALVALUME3%Flat Roll Division 41%5%9%MERCHANT BARSRoanoke Bar DivisionSPECIALTY STEELSteel of West VirginiaGALVANIZED45%15%Hot-rolledGalvanized33% HOT ROLLSTEEL SHIPMENTSBY DISTRIBUTION CHANNEL4%STEEL FABRICATORSSTEEL SHIPMENTSBY END MARKET*Other manufacturing 19%CONSTRUCTION 40%15% Metal buildingsSERVICE CENTERSAND DISTRIBUTORS61%35%DIRECT SALES(OEMS)Appliances and HVAC 2%Other transportation 2%Agriculture 3%Heavy equipment 3%Mining 5%Energy 9%Heavyconstruction13%Light commercialand residential12%17%AUTOMOTIVE* End-market percentages shown are best estimates. Construction and automotive-market estimates are believed to be the most accurate because oursales to these markets are more direct and transparent. Because of the high percentage of our steel shipments going through distribution, and becausedistributors generally do not report details of their customer sales to us, the estimates for the other markets are less certain, and include direct sales,plus estimates by our marketing departments of distribution sales into each market.ANNUAL REPORT 2008A1

PRODUCTS AND MARKETSThis section shows products now offered by Steel Dynamicsin three categories: steel, fabricated steel, and recycled metals.These products are used in a wide array of applications, someof them shown in photos across the top of these pages.steel operationsFLAT ROLLPRODUCTS2008mixButlerJeffersonvilleTheTechsABEA Hot band 33% •B Pickled 5% •C Cold-rolled 6% •D Hot-rolled galvanized 15% • •E Cold-rolled galvanized 30% • • •CDEF Galvalume® 3% •G Painted 8% • •FGEND MARKETS Flat-rolled steel markets include numerous constructionapplications, particularly siding, roofing, and decking in metal buildings,light commercial and residential construction, galvanized ductwork, framing,and garage doors; automotive parts; appliances; heating, air conditioning,and ventilation equipment; agriculture equipment and grain bins; weldedpipe and tubing used in utility systems and energy applications; lightingfixtures; architectural panels; office furniture; and culverts and guardrails.Galvalume® is a registered trademark of BIEC International, Inc.Engineered Bar productsPRODUCTSA Finished barB RoundsC Round-cornered squaresDETAILWe produce engineered Special BarQuality (SBQ) steel in round barsranging from 1.5-inch to 9-inchdiameter and round-cornered SBQsquares in sizes from 2 to 8 inches.We provide such bar-finishing servicesas heat-treating, turning, straightening,polishing, chamfering, and precisionsaw-cutting, as well as non-destructivetesting services. We also occasionallyproduce No. 5 to No. 11 rebar.ABCEND MARKETS Round bars are most frequently used to make parts—suchas gears, shafts, axles, and flywheels —for rotating machinery applications.Round-cornered squares are mainly used in forging steel parts. Typically,our high-strength carbon and alloy-steel bars are custom-formulated forspecific applications in heavy-construction equipment, automobiles andtrucks, agricultural equipment, mining, and marine drive systems. We alsoengineer and produce round bars for the manufacture of seamless pipeand tubing used in oil drilling, military, and other applications.A2STEEL DYNAMICS, INC.

structural and railPRODUCTSA Wide-flange beamsWeb height from 4 to 36 inchesB H-pilingC RailD Structural shapes(channels shown here)DETAILWe produce wide-flange beams in awide range of web heights and weights,cut to standard or custom lengths upto 120 feet; H-piling, which is driveninto the ground to support structures,in various sizes up to 120 feet; andrail in various sizes up to 240 feetin length and welded rail up to1,600 feet in length.AEND MARKETS Wide-flange beams and structural shapes are used primarilyin construction: commercial and industrial buildings, bridges, skyscrapers,hospitals, airport terminals, stadiums, parking garages, office buildings, anddistribution centers. They are used in energy projects such as refineries, bio-dieseland ethanol plants, and other processing facilities; and in the manufacture oftruck, trailer, and RV frames. H-piling supports such structures as bridges, roads,and oil and natural-gas pipelines. Rail is used in railway track by Class 1 railroads,short lines, commuter lines, and industrial plants.B C DMERCHANT BAR (ROANOKE BAR DIVISION)PRODUCTSA AnglesB ChannelsC Flat barsD Rounds and rebarDETAILWe produce a broad range of standardcarbon-steel merchant-bar products:angles ranging from 1 to 4 inches,3- and 4-inch channels, flats from1 to 6 inches wide, strips, round barsup to 1.5 inches in diameter, and No. 4and No. 5 rebar. These products are soldin industry-standard lengths. We alsomarket rectangular steel billets.AEND MARKETS Merchant bars are used primarily in light commercialconstruction and in joist manufacturing. They are also used in the fabrication ofindustrial and commercial equipment and by OEM customers in the manufactureof a wide variety of products, such as utility trailers, agricultural equipment andimplements, material-handling equipment, and specialized transportation andmanufacturing equipment. Billets are used in manufacturing rolled steel and inforging steel parts.B C DANNUAL REPORT 2008A3

steel operationsSPECIALTY SHAPES AND LIGHT STRUCTURAL STEEL (STEEL OF WEST VIRGINIA)CPRODUCTSA Guardrail postsB Industrial truck componentsC Mine railD Truck-trailer crossmembersE Merchant sectionsDETAILWe produce a wide variety ofcarbon-steel specialty shapes,a line of standard merchant barsand light structural shapes, andtruck-trailer beams that we weldand fabricate for the customer.Our specialty shapes, includingdistinctive asymmetric shapesonly we produce, are oftencustom-engineered to meet ourOEM customers’ requirements.ABDEEND MARKETS Specialty shapes serve a wide range of OEM customers,but the primary market is industrial lift-truck manufacturers and off-highwayconstruction-equipment manufacturers. We also make rail for mining applicationsand light-rail systems. Our standard merchant shapes are primarily used inthe construction industry, in such applications as frames for mobile homes andrecreational vehicles, and highway guardrail posts. Truck-trailer beams are usedin the production of truck beds and semi-trailers.Steel fabricationJOISTS AND DECKING (NEW MILLENNIUM BUILDING SYSTEMS)APRODUCTSA JoistsB DeckingDETAILWe produce steel building components:joists, girders, and trusses in a varietyof standard designs, as well as customconfigurations to satisfy uniquearchitectural and structural requirements,including bowstring, arched, scissor,double-pitched, and single-pitchedjoists. Steel decking: roof, form, andcomposite floor decking.END MARKETS Our joists, girders, trusses, and decking products are usedprimarily in the construction of non-residential buildings. Joist products providesupport for roofs and floors. Decking is used to bear flooring material, such asconcrete, or to cover roofs. Buildings include commercial, industrial, institutional,and government projects, such as shopping centers, big-box stores, fast-foodrestaurants, drug stores, motels, factories, distribution centers, office buildings,schools, churches, hospitals, and libraries.BA4STEEL DYNAMICS, INC.

metals recycling (OMNISOURCE CORPORATION)ferrous scrapPRODUCTS WE BUYA Crushed automobilesB Industrial scrapC Clean cast partsAD Rebar scrapEEPRODUCTS WE SELLE No. 2 shredded (pile and detail)F No. 1 bundlesBG Plate and structuralH No. 1 bushelingFGI TurningsJ Heavy meltK BriquettesCDDETAILS OmniSource purchasesmetals, such as those shown atleft, to be processed for sale.Processing at our facilities includesshredding, compacting, baling,shearing, and bundling—yieldingvarious types and grades of ferrousscrap (at right). Most recycled steelis sold to steel mills and foundries.HJIKnonferrous scrapPRODUCTS WE BUYA Aluminum cansB Copper wireABPRODUCTS WE SELLC Secondary aluminum ingotsD Copper granulesE Stainless steel bundlesCDDETAILS We buy nonferrous scrap as well as recover nonferrous metals fromour shredding operations. We also operate facilities converting nonferrousscrap into forms useful to industry, such as secondary aluminum alloys andcopper, bronze, and stainless steel in a variety of forms.EThe above photos are representative of the wide variety of recycled metals that OmniSource buys and sells .ANNUAL REPORT 2008A5

2008 board of directorsKeith E. BusseChairman and Chief Executive OfficerSteel Dynamics, Inc.Mark D. MillettExecutive Vice PresidentSteel Dynamics, Inc.Richard P. Teets, Jr.Executive Vice PresidentSteel Dynamics, Inc.John C. BatesPresident and Chief Executive OfficerHeidtman Steel Products, Inc.Frank D. Byrne, M.D.PresidentSt. Mary’s Hospital Medical CenterMadison, WisconsinPaul B. EdgerleyManaging DirectorBain Capital, Inc.Richard J. FreelandPresident and Chief Executive OfficerPizza Hut of Fort Wayne, Inc.Dr. Jürgen KolbRetiredFormer member of Executive OfficeSalzgitter, AGJames MarcuccilliPresident and Chief Executive OfficerSTAR Financial BankJoseph D. RuffoloPrincipalRuffolo Benson, LLCexecutive officers corporate officers corporate managersKeith E. BusseChairman and Chief Executive OfficerGary E. HeasleyExecutive Vice President forStrategic Planning and Business DevelopmentMark D. MillettExecutive Vice President forMetals Recycling and Ferrous Resources,President and Chief Operating Officerof OmniSource CorporationRichard P. Teets, Jr.Executive Vice Presidentfor Steelmaking,President and Chief Operating Officerof Steel OperationsTheresa E. WaglerExecutive Vice PresidentChief Financial OfficerBenjamin A. EisbartVice PresidentHuman ResourcesRichard A. PoinsatteVice PresidentTreasurerBrent A. RitenourVice PresidentInternal AuditJanice E. ConwellCorporate Health and Safety ManagerTroy R. EhleCorporate ControllerRobert E. FrancisInformation Technology ManagerFredrick A. WarnerInvestor Relations Managerstockholder informationANNUAL MEETINGMay 21, 20099:00 am EasternGrand Wayne CenterCalhoun Ballroom120 West Jefferson BoulevardFort Wayne, Indiana 46802STOCKHOLDER RECORDSComputershare Trust Company, N.A.P.O. Box 43078Providence, Rhode Island 02940-3078(877) 282-1168www.computershare.comINVESTOR INFORMATIONFred WarnerInvestor Relations Manager(260) 969-3564Fax: (260) 969-3590www.steeldynamics.comE-mail: f.warner@steeldynamics.comCORPORATE OFFICES6714 Pointe Inverness Way, Suite 200Fort Wayne, Indiana 46804(260) 459-3553Fax: (260) 969-3590MARKET INFORMATIONThe company’s stock trades on the NASDAQGlobal Select Market under the symbol STLD.Steel Dynamics is included in the NASDAQ-100and S&P Mid-Cap 400 indices.A6STEEL DYNAMICS, INC.© 2009 Steel Dynamics, Inc.

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