Steel Mills
Nucor Finds Flat-rolled Trade Cases Have Positive Impact for Q3 Earnings
Written by Sandy Williams
September 15, 2016
Nucor expects higher earnings in third quarter compared to second quarter due to improved performance at its raw materials division and steel mills.
In its third quarter guidance, Nucor said higher average selling prices that have benefited in part from contract sales priced on a lagging quarterly basis would improve profitability of the company’s sheet mills. Cold rolled and galvanized sheet product demand is robust, said Nucor, but demand for hot-rolled has weakened in the second half.
High levels of imports continue to challenge the market for plate and bar. Lower service center inventory and lower scrap costs will benefit the steel mills segment. Energy, heavy equipment, and agricultural markets are still showing weakness while automotive is strong.
The flat rolled trade cases have had a positive impact on steel imports in the first seven months of 2016, said Nucor. A cut-to-length steel plate case against 12 countries, filed by Nucor and other domestic producers, is expected to conclude by mid-2017.
Results are expected to be in the range of $0.85 to $.90 per diluted share compared to consolidated net earnings of $0.73 per diluted share in Q2 and $0.71 per share in Q3 2015. Although Nucor expects to show stronger results in third quarter, the forecast was below the analysts’ average estimate of $1.02.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
BREAKING NEWS: Cliffs plans to idle three mills, cut 950 jobs on ‘insufficient demand and pricing’
Cleveland-Cliffs plans to indefinitely idle its steel mill in Riverdale, Ill., as well as mills in Conshohocken, Pa., and Steelton, Pa. The Cleveland-based steelmaker said all three facilities would be idled on or around June 30. Approximately 950 jobs will be impacted, the company said.
CRU: Usiminas may reduce capex unless government strengthens protection
“The lack of effective measures to create fair competition, amid a surge in subsidized imports, is the main threat to the sustainability of Brazil’s steel industry and its value chain,” CEO Marcelo Chara said.
USS swings to loss in first quarter on N. American flat-rolled segment woes
U.S. Steel CEO praised the company’s resilience, “despite the seasonally low results driven by annual mining logistics constraints in our North American Flat-Rolled segment and lagging spot prices.”
Nucor gives updates on new capacity coming online
Nucor said several of its capital projects will start operations within the next year and provided an update on them.
Algoma swings to loss on ‘market challenges’ and ‘tariff uncertainties’
Canada’s Algoma Steel swung to a loss in the first quarter amid "market challenges," and the company now expects first steel production from its first EAF in the second quarter.