“Demand for flat-rolled steel in the second quarter was much weaker than initially expected, particularly toward the end of the quarter,”� said Keith Busse, President and CEO of Steel Dynamics. “This resulted in lower selling prices and a decrease in the spread between selling prices and the cost of the ferrous scrap consumed during the quarter. Our average consolidated selling price per ton shipped decreased $61 per ton, from $669 in the first quarter to $608 in the second quarter, while our metallics costs were down $49 per ton. Although falling scrap prices in the second quarter are a positive for future quarters, our raw materials costs in the second quarter reflected the somewhat higher prices of materials purchased earlier.

“While the Company and the industry experienced reduced order entry rates in the second quarter, Steel Dynamics performed very well operationally and continues to operate at historically high levels of profitability. In May the Flat Roll Division achieved a hot band production record, while yet in June, due to market conditions, production was off by 15 percent versus our early expectations. Additionally, the Structural & Rail Division set a new record for structural steel shipments in June, and its quarterly shipments, for the first time, exceeded 200,000 tons. The Bar Products Division continues to expand its offerings of SBQ products and achieved a 20 percent increase in shipments compared to the first quarter,”� Busse said.

Second quarter consolidated shipments of 897,000 tons were 1 percent higher than the second quarter of 2004 and 5 percent higher than the first quarter of 2005. Steel operations shipments were virtually unchanged compared to the second quarter of 2004, but were up 4 percent over the first quarter. Flat Roll shipping volume in the second quarter was unchanged from the first quarter, but shipments of structural steel and SBQ bars increased.

“The flat roll market remains soft in comparison to 2004, although we are encouraged by recent order-entry volume and are hopeful this trend will continue,”� Busse said. “Our structural steel backlog is at a record level, as we believe that the non-residential construction market is improving. Our SBQ bar backlog is weak in comparison to 2004, but with the new contract season just ahead, SDI is well positioned with a broad array of new products to gain new business.”�

Progress on the Mesabi Nugget project remains slow due to challenges to the permitting process in both Minnesota and Indiana.

New Millennium Building Systems, our wholly owned subsidiary engaged in the manufacture of steel joists and decking, continues to perform well with production ramping up at the new Lake City, Florida, plant. Lake City, which started production in March, is expected to be profitable in the third quarter.

During the quarter the Company repurchased an additional 3.6 million shares of its common stock, nearly completing the repurchase programs authorized by the Board of Directors. During the past three quarters the company has repurchased 7.3 million shares.

Conference Call and Webcast

On Tuesday, July 19, 2004 at 11:00 am Eastern, Steel Dynamics will host a conference call in which Steel Dynamics’ management will discuss second quarter 2005 results. You are invited to listen to the live audio broadcast of the conference call over the Internet, accessible from Steel Dynamics’ Web site: www.steeldynamics.com

Dial-in information is available on our Web site. No telephone replay will be available. An audio replay of the Webcast will be available from the SDI Web site.

Forward Looking Statements

This press release contains some predictive statements about future events, including statements related to conditions in the steel marketplace, Steel Dynamics’ revenue growth, costs of raw materials, future profitability, and the operation of new or existing facilities. These statements 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. Such predictive statements are not guarantees of future performance, and actual results could differ materially from our current expectations.

We refer you to SDI’s detailed explanation of the many 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 and in other reports which we from time to time file with the Securities and Exchange Commission, available publicly on the SEC Web site, www.sec.gov, and on the company’s Web site, www.steeldynamics.com.

Contact: Fred Warner, Investor Relations Manager
(260) 969-3564 or fax (260) 969-3590
f.warner@steeldynamics.com