Nucor expects lower 4Q steel shipments

Market: Metals
15/12/22

Electric arc furnace (EAF) steelmaker Nucor is expecting lower steel shipments in the fourth quarter compared to the prior quarter.

Nucor expects flat-rolled and long product steel shipments to fall compared with the third quarter, leading to considerably lower earnings from its steel mill segment, the company said in an earnings guidance released today.

Bar mill shipments will be down as seasonal factors lead to customers reducing their inventories as the end of the year approaches.

Nucor's sheet shipments in the third quarter were 2.68mn short tons, while bar shipments were 2.17mn st.

The performance of Nucor's raw material segment is expected to have "significantly decreased" earnings in the fourth quarter compared with the third quarter, driven by lower profitability at its direct reduced iron (DRI) plants in Louisiana and Trinidad and Tobago. Both of those facilities took planned outages in the fourth quarter.

Nucor's steel products segment performance is expected to decrease moderately compared with the third quarter on economic uncertainty and recession concerns that may impact future demand.

Nucor's estimates fourth quarter profits will be 45-47pc lower than in the prior-year period.

By Rye Druzin

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