{"url_path":"/sec/stld/10-k/2026/item-7a","section_key":"item-7a","section_title":"Item 7A QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK","topic":"sec","document":{"doc_type":"10-K","doc_date":"2026-02-27","source_url":"https://www.sec.gov/Archives/edgar/data/1022671/0001104659-26-021395-index.html","accession_number":"0001104659-26-021395","cik":"0001022671","ticker":"STLD","issuer_name":"STEEL DYNAMICS INC","edgar_url":"https://www.sec.gov/Archives/edgar/data/1022671/0001104659-26-021395-index.html","primary_entity_key":"0001022671","primary_entity_name":"STEEL DYNAMICS INC"},"word_count":547,"has_tables":true,"body_markdown":"ITEM 7A.          QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK\n\nMarket Risk\n\nIn the normal course of business, we are exposed to interest rate changes. Our objectives in managing fluctuations in interest rates are to limit the impact of these rate changes on earnings and cash flows and to lower overall borrowing costs.\n\nThe following table represents the principal cash repayments and related weighted-average interest rates by maturity date for our long-term debt, as of December 31, 2025 (in thousands):\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Interest Rate Risk**\n\n​\n\n​\n\n​\n\n​\n\n**Fixed Rate**\n\n​\n\n**Variable Rate**\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n**Average**\n\n​\n\n​\n\n​\n\n**Average**\n\n​\n\n​\n\n​\n\n​\n\n**Principal**\n\n​\n\n**Rate**\n\n​\n\n**Principal**\n\n​\n\n**Rate**\n\n​\n\n​\n\nExpected maturity date:\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n​\n\n2026\n\n​\n\n$\n\n1,493\n\n​\n\n​\n\n5.2%\n\n​\n\n$\n\n33,162\n\n​\n\n​\n\n5.5%\n\n​\n\n​\n\n2027\n\n​\n\n​\n\n351,099\n\n​\n\n​\n\n1.7\n\n​\n\n​\n\n-\n\n​\n\n​\n\n​\n\n​\n\n​\n\n2028\n\n​\n\n​\n\n650,416\n\n​\n\n​\n\n4.0\n\n​\n\n​\n\n-\n\n​\n\n​\n\n​\n\n​\n\n​\n\n2029\n\n​\n\n​\n\n198\n\n​\n\n​\n\n5.1\n\n​\n\n​\n\n-\n\n​\n\n​\n\n​\n\n​\n\n​\n\n2030\n\n​\n\n​\n\n600,095\n\n​\n\n​\n\n3.5\n\n​\n\n​\n\n-\n\n​\n\n​\n\n​\n\n​\n\n​\n\nThereafter\n\n​\n\n​\n\n2,650,147\n\n​\n\n​\n\n4.7\n\n​\n\n​\n\n-\n\n​\n\n​\n\n​\n\n​\n\n​\n\nTotal debt outstanding\n\n​\n\n$\n\n4,253,448\n\n​\n\n​\n\n4.2%\n\n​\n\n$\n\n33,162\n\n​\n\n​\n\n5.5%\n\n​\n\n​\n\nFair value\n\n​\n\n$\n\n4,108,867\n\n​\n\n​\n\n​\n\n​\n\n$\n\n33,162\n\n​\n\n​\n\n​\n\n​\n\n​\n\nCommodity Risk\n\nIn 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, water, 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.\n\nOur 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 its transportation services, fuel, air products, zinc, and electrodes. Refer to Note 8. *Commitments and Contingencies* to the consolidated financial statements elsewhere in this report for additional information.\n\n​\n\nIn our metals recycling, aluminum, and steel operations, we have certain fixed price contracts with various customers and suppliers for future delivery of nonferrous and ferrous metals. We believe these contracts will be fully consummated. 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 December 31, 2025, we had a cumulative unrealized loss associated with these financial contracts of $56.0 million, substantially all of which have settlement dates in 2026.\n\n​\n\n​\n\n49\n\n[Table of Contents](#TOC)"}