Steel Mills
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/media/k2/items/src/6d8941f91c2c17ae2786290939084120.jpg)
Nucor Posts Record Profits in '21, Predicts 'Slightly Reduced' Q1 '22
Written by Michael Cowden
January 27, 2022
Nucor Corp. crushed annual profit records in 2021 and posted yet another quarterly profit record in the fourth quarter.
The trend continues a 2021 pattern among domestic steelmakers of each quarter setting a record compared to that set in the prior quarter.
All told, the Charlotte, N.C.-based steelmaker posted an annual profit of $6.83 billion in 2021, a nearly tenfold increase from $721.5 million in 2020 on sales that rose 81.2% to $36.5 billion, according financial results released on Thursday, Jan. 27.
“By so many measures, 2021 was an extraordinary year for Nucor. … Our record financial performance is the result of years of work investing to strategically position and grow our portfolio of capabilities across the steel value chain,” Nucor President and CEO Leon Topalian said in a statement.
For the fourth quarter, Nucor recorded net income of $2.25 billion, up 5.6% from $2.13 billion in the third quarter – the prior quarterly record – and up more than fivefold from $398.8 million in the fourth quarter of 2020. Net sales were $10.36 billion in the fourth quarter, roughly even with $10.31 billion in the third quarter and nearly double $5.26 billion in the fourth quarter of 2020.
But Nucor predicted that the string of record quarterly profits would end in 2022, with first-quarter profits expected to be “slightly reduced” from fourth-quarter results despite continued strong demand from the nonresidential construction sector. And the company said profits from its steel mills would decrease on lower income from its sheet operations.
That reflects spot steel price trends: SMU’s hot-rolled coil price averaged $1,794 per ton in the fourth quarter, down 5.2% from $1,893 per ton in the third quarter. Recall that contract prices, which account for a bulk of sheet sales, typically follow spot prices on a modest lag.
Nucor’s sheet shipments also trended lower in the fourth quarter. The company shipped 2.50 million tons of sheet products in the fourth quarter of 2021, down 6% from 2.66 million tons in the same quarter the prior year. Plate shipments were roughly flat: 489,000 tons in the fourth quarter of last year compared to 485,000 tons in the fourth quarter of the year prior.
Operating rates were also lower: 89% in the fourth quarter compared to 96% in the third quarter. The company said that was in part because of a planned outage in December at its Gallatin sheet mill in Ghent, Ky.
On the raw materials side, prices also dipped. The average scrap and scrap substitute cost was $508 per gross ton in the fourth quarter, down 1% from $511 in the third quarter of 2021, Nucor said.
Scrap substitutes are products such as direct reduced iron (DRI) and pig iron.
But raw material prices remain sharply higher year over year.
Average scrap and scrap substitute cost for full-year 2021 were $469 per gross ton, a 62% increase compared to $290 in full-year 2020, Nucor said.
And scrap price gains are mild compared to those in finished steel. Case in point: Hot-rolled coil prices averaged $1,606 per ton in 2021, up 175% from $583 per ton in 2020, according to SMU’s interactive pricing tool.
By Michael Cowden, Michael@SteelMarketUpdate.com
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2024/02/SMU_MC_headshot-150x150.png)
Michael Cowden
Read more from Michael CowdenLatest in Steel Mills
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/Nucor.png)
Nucor lowers 2024 output estimate for Brandenburg plate mill
Nucor has lowered the 2024 production estimate for its Brandenburg, Ky., plate mill due to soft market conditions.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/SSAB.png)
SSAB adjusts output in weak Q3, readies for Q4 rebound
SSAB said lower plate prices in the US were the primary reason for reduced results in the second quarter. With a dismal Q3 outlook, the Swedish steelmaker is adjusting production across its facilities. That includes moving up its annual US mill outage in anticipation of a better Q4. SSAB Americas Revenues in the Americas segment […]
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/Nucor.png)
Topalian puts focus on “unfair” trade, eyes USMCA partners
Nucor’s top executive expressed concerns over unfair trade practices, highlighting increased steel imports from Mexico and Canada.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/Cliffs_logo2.2.png)
Cliffs sees close of Stelco buy, bottom to steel tags, and Mexico out of USMCA
Cleveland-Cliffs expects its acquisition of Canada’s Stelco to close later this year, which will help the the Cleveland-based steelmaker as a bottom to steel tags nears.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/Nucor.png)
Nucor posts lower Q2 earnings, predicts tough Q3 too
Nucor recording lower second quarter earnings on falling steel prices. And the Charlotte, N.C.-based predicted that profits would be lower still in the third quarter, primarily because of weaker results from its steel mills divisions.