Steel Mills

Nucor Reports Earnings of $356.9 Million
Written by John Packard
April 20, 2017
With consolidated sales of $4.82 billion which is a 30 percent increase over 1Q 2016 and net earnings of $356.9 million it was a good 1st Quarter 2017 for the company. The company reported that the second quarter earnings should exceed that of 1st Quarter.
The overall operating rates at the Nucor steel mills was 89 percent compared to 74 percent in 4th Quarter 2016 and 80 percent during the 1st Quarter 2016.
Even so, Nucor had time to discuss the trades cases concerning imports of cut-to-length plate, rebar and steel wire rod as the company makes sure that they can compete on a level-playing field.
Nucor CEO John Ferriola, in their earnings conference call, spoke about the meeting he had today with President Donald Trump as he signed the Executive Order directing the US Department Commerce to investigate steel imports and its impact on the security of the United States and key national industries.
Ferriola reported that the President was “engaged” as was Secretary Ross. Nucor “welcomes an investigation” as “many of these steels are traded illegally violating our trade laws.” He continued with, “All we want is a level playing field.”
Regarding scrap, Ferriola reported that pig iron prices have been moving lower as has iron ore in the seaborn market. He believes scrap prices would not have any major moves during the remainder of the year and could well head lower.
He spoke of the energy business where rig counts have doubled off the lows and, he advised those on the call that the number of tons per rig have also doubled. “That’s a good situation for us.”
When looking at the three major movers of steel: construction, automotive and energy are all looking good according to the Nucor CEO.
Nucor expects to break ground on their joint venture with JFE out of Japan for a 400,000 tons automotive galvanized sheet mill in Mexico.

John Packard
Read more from John PackardLatest in Steel Mills

Hyundai still on for Louisiana steel mill despite US raid at Georgia battery plant
Hyundai has reaffirmed its commitment to build a steel plant in Louisiana following a US government immigration raid at its battery facility in Georgia.

Hybar lowers output forecast, owning up to EAF startup delay
Hybar LLC’s rebar mill in Osceola, Ark., is now melting scrap and will soon be fulfilling orders, according to CEO David Stickler, despite a six-to-eight-week delay caused by commissioning the world’s first Aura electrical system.

Steel Dynamics guides to more metal, more money in Q3
Steel Dynamics Inc. is bullish heading into the close of the third quarter, with all three of its operating segments tracking higher.

AHMSA opens doors to potential buyers as $1.3B asset auction nears
AHMSA is opening its doors to potential buyers to tour its steel plant and mining operations in northern Mexico in preparation for the next stage of its bankruptcy process: the auction of its assets.

USW seeks clarity on USS plans for Granite City Works
The United Steelworkers union has asked U.S. Steel to elaborate on its Granite City Works plans following reports that the steelmaker is ending processing at the facility.