Nucor expects financial results to deteriorate in Q3

The American steel company Nucor expects a deterioration in financial results in the third quarter compared to the previous quarter. Weak prices for steel products will continue to put pressure on production results. This is reported by Reuters.

At the same time, the financial results of the second quarter exceeded forecasts, as increased sales in the steel products segment (beams, decks, pipes and fasteners used in construction) partially offset the decline in domestic steel prices.

Despite exceeding expectations, net sales in the second quarter fell by 15.1% compared to the second quarter of 2023, and earnings per share fell by almost 54% y/y. Consolidated revenue for the period amounted to $8.1 billion, compared to the forecasted $7.69 billion.

“Average steel prices in April-June 2024 fell amid oversupply both in the domestic and imported markets, prompting distributors to refrain from purchasing excess inventory,” the statement said.

At the end of June, Nucor cut its weekly hot rolled coil (HRC) prices by $35 per tonne to $680 per short tonne. This is the lowest level since April 24 this year, when prices dropped below $700 per tonne.

As GMK Center reported earlier, in April this year, Nucor announced the introduction of weekly consumer spot prices (CSP) for hot-rolled steel. The CSP is published every Monday, informing customers of HRC spot prices for the week ahead. The published values are valid until the next publication.