Steel Mills
Trade Cases Contributing to Stronger Second Quarter
Written by Sandy Williams
June 16, 2016
Nucor Corporation says flat rolled-trade cases are having a positive impact on reducing steel imports. The expectation is that final determinations in all three flat rolled cases will result in higher duties than currently being collected from the preliminary decisions.
Second quarter results are expected to be significantly improved from first quarter due to higher average selling prices and improved volumes. Earnings per diluted share are anticipated to be in the range of $0.65 to $0.70, up from $0.39 in Q2 2015 and $0.22 in Q1 2016.
Sheet mills have benefited from lower inventory levels in the supply chain, particularly at service centers, and from decreased imports. Average sheet pricing is up significantly but because contract pricing represents more than 50 percent of Nucor’s sheet steel shipments, the full benefit will not be realized until third quarter.
The energy, heavy equipment and agricultural markets remain weak but automotive continues to be strong.
Growth in the nonresidential market is expected to positively impact the downstream products segment.
Said Nucor, “We believe that the performance of the downstream products segment for the full year 2016 will be improved compared to 2015, despite higher expected steel costs in the current year and minimal benefits from the 2015 highway bill, which we believe we will have a greater impact on future years’ performance.”
The raw materials segment will show improvement in second quarter due to increased pricing at Nucor’s scrap processing business and DRI facilities.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
USS/Nippon deal: Who will have the happiest holidays?
Will Santa bring gifts for the leadership, employees, and shareholders of U.S. Steel and Nippon Steel, and lumps of coal for USW leadership and politicians opposed to the deal?
‘Orderly liquidation’ of AHMSA assets begins
A trustee has formally taken over AHMSA and begun the liquidation process of the bankrupt Mexican steelmaker.
Nippon buying stake in Canadian iron ore project
Nippon Steel and a Japanese trading company have entered an agreement to buy a 49% interest in a Champion Iron ore project in Canada.
USS anticipates Q4 loss on weak demand, BR2 start-up
Amid a challenging pricing and demand environment, and with the ongoing ramp-up of the Big River 2 mill, USS is anticipating a loss for the fourth quarter.
Nucor blames steel mills segment for depressed Q4 guidance
Nucor cited decreased volumes and prices in it steel mills segment as the key driver of its lower guidance for the fourth quarter.