Sycamore Capital Q2 Investor Letter: Steel giant Steel Dynamics (STLD) benefits from rising steel prices, widening spreads, and 25% tariff protection, with its stock price up over 106% in 52 weeks.
Sycamore Capital Management's Sycamore Mid Cap Value Equity Strategy noted in its Q2 2026 investor letter that U.S. steel producer Steel Dynamics (NASDAQ:STLD) was one of the quarter's primary contributors. The company's stock price has risen 106.56% over the past 52 weeks, closing at $263.18 as of August 12. The fund believes that rising steel prices and expanding metal spreads, coupled with the 25% Section 232 tariff regime reducing import competition, have enabled domestic producers to maintain strong pricing. Additionally, STLD's aluminum operations in Mississippi have benefited from increased capacity due to higher import tariffs leading to domestic supply shortages. Management remains optimistic about long-term tailwinds such as data center construction, reshoring of manufacturing, and non-residential infrastructure, believing these will support a durable demand backdrop.
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