NEW YORK (TheStreet) -- Shares of Steel Dynamics Inc (STLD) - Get Report are gaining, up 5.31% to $19.62 on heavy volume in late morning trading Wednesday, following the steel producer's first quarter 2015 earnings guidance, released late yesterday. 

For the first quarter, the company expects adjusted earnings in a range of between 8 cents to 12 cents per share, below the 22 cents analysts are expecting.

However, the company added that in the first quarter, domestic steel product pricing declined to levels that are now globally competitive. Steel Dynamics believes this will result in reduced steel import levels beginning in the second quarter 2015 amid continued demand. 

It also noted that ferrous scrap pricing declined between 25% to 30% in February, which will benefit metal margin. 

While both the stronger dollar and muted global growth have been hindering metals, stimulus measures from Europe to China have improved sentiment recently toward the industry.

About 3.72 million shares of Steel Dynamics have exchanged hands as of 11:36 a.m. ET today, compared to its average trading volume of about 3.62 million shares a day.

Fort Wayne, IN-based Steel Dynamics is a steel producing and a metal recycling company that operates through three segments including steel operations, metals recycling and ferrous resources operations, and steel fabrication operations.

Insight from TheStreet's Research Team:

Bob Lang, Co-Portfolio Manager of Trifecta Stocks provided technical analysis on the Steel Dynamics stock chart. Here is what Lang had to say:

This stock is surging today post earnings on some strong turnover. The MACD is now signaling a buy signal but there is some resistance ahead at the 200 ma. The W pattern is apparent (marked) and with one more day of follow-through, we could see this stock reach the old highs around 23. Today it breaks the steep downtrend line on good volume. The group (steel) has been under pressure with the strong dollar but lately there has been good option flow, especially in this name.

-Bob Lang, Co-Portfolio Manager of Trifecta Stocks, 3/18/2015

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Separately, TheStreet Ratings team rates STEEL DYNAMICS INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:

"We rate STEEL DYNAMICS INC (STLD) a HOLD. The primary factors that have impacted our rating are mixed, some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, poor profit margins and generally higher debt management risk." You can view the full analysis from the report here: STLD Ratings Report