Steel Mills
Nucor raw materials segment swings to profitability
Written by Stephen Miller
January 28, 2025
Nucor’s raw material segment generated an annual profit of $57 million in 2024. This marked a swing to profit over 2023 when Nucor reported a $14-million loss for the segment.
The Charlotte, N.C.-based company did not say in their earnings call on Tuesday what caused this increase besides a 20% increase in the production and usage of direct-reduced-iron (DRI) from their Trinidad and Convent, La., modules.
The 2023 number may have included the importation and usage of extremely expensive pig iron, which Nucor had to source and absorb when prices doubled after the Russian-Ukrainian War in 2022 that resulted in sanctions. A substantial amount likely spilled in to 2023 steel production.
In other 2024 raw material activity, Nucor reported it is making progress in the upgrade of ferrous scrap by presumably improving segregation of obsolescent grades to drive down the residual alloy content.
Nucor did not provide any details on what new technology was developed or employed.
Scrap segregation has been a longtime method in the preparation of recycled metals to improve quality.
Outlook
Looking ahead to Q1’25, Nucor believes ferrous scrap prices are looking stronger, which will be more costly than Q4’24. Scrap prices in February could move up somewhat but may moderate as Q1 progresses.
However, their DRI production costs, which in addition to the increase of 20% in volume, have significantly fallen. This should put raw material costs in Q1’25 less than Q4’24.
The increase in production and usage of DRI should also limit pig iron usage further, adding to the decrease in raw material costs.
Stephen Miller
Read more from Stephen MillerLatest in Steel Mills
USW seeks clarity on 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.
Nucor maintains plate prices, opens October order book
Nucor aims to keep plate prices flat for a seventh straight month with the opening of its October order book.
ArcelorMittal Mexico to import from sister mills as it works to resume DRI production
ArcelorMittal has partially restarted operations at its direct reduction plant in Lazaro Cardenas, Michoacan. An explosion on Aug. 18 rocked the massive steelworks on Mexico’s Pacific coast, impacting production of direct-reduced iron (DRI).
Fall maintenance outages are coming in hot
Labor Day has passed, the sun is starting to set a little earlier each day, and cooler weather has begun to find its way down to many of us across North America. And you know what that means for the steel industry… Fall maintenance outages!
AISI: Domestic steel production ticks up
US raw steel production ticked up in the week ending on Sept. 6 after a decrease the week before, according to the most recent data from the American Iron and Steel Institute (AISI).