Released December 15, 2017 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Pressure from imports and weakness in the plate steel market caused Nucor Corporation (NYSE:NUE) (Charlotte, North Carolina) to lower its fourth-quarter 2017 steel mills earnings estimate, but the company said Thursday it was encouraged by market conditions heading into 2018.
Industrial Info is tracking more than $1.6 billion in active Nucor projects in the U.S. and Mexico. For related information see, November 22, 2017, article - Nucor to Expand Illinois Steel Mill and September 18, 2017, article - Nucor Approves New Steel Micro Mill.
Despite solid overall market demand in the fourth quarter, Nucor said earnings by its steel mill segment will be hurt by margin compression "as the import surge experienced in the summer of 2017 has been working its way through end markets over the last half of the year."
Through the first 10 months of 2017, total steel imports have increased by an estimated 19.4% compared with the same period last year, Nucor said. Additionally, finished steel imports accounted for an estimated 28% share of the U.S. market in the first 10 months of 2017.
The American Iron and Steel Institute (AISI) reported that year-to-date through October, total and finished steel imports were 32,850,000 and 25,449,000 net tons, respectively.
Steel imports and cargo containers were the main drivers behind a 9% increase in tonnage shipped through the Port of Houston in November, the port authority said Tuesday. "Steel volumes continue to trend upward, totaling 3.4 million tons, reflecting a 57% increase compared to the same period last year," Port Authority Executive Director Roger Guenther said in a press release.
Nucor noted the U.S. Department of Commerce has made several rulings imposing duties on additional steel products that are favorable to the domestic steel industry. Among other things, the Commerce Department made a preliminary determination that corrosion-resistant and cold-rolled steel from Vietnam that originated in China evaded U.S. anti-dumping and anti-subsidy orders. For more information, see December 7, 2017, article - U.S. Slams Steel Imports from Vietnam that Started in China.
Domestic steel shipments were also up for the first 10 months of this year, AISA said on Monday. U.S. steel mills shipped 76,138,524 net tons for the year through October, a 4.8% increase versus shipments of 72,635,819 net tons for the same period in 2016.
Nucor said it was encouraged by market conditions heading into 2018.
"We see recently announced price increases and the downward trend in imports late in the year from the mid-year peak as factors building positive momentum," the company said. "The automotive market remains healthy and continues to be a bright spot for Nucor as we grow our penetration of new automotive platforms. Nonresidential construction markets remain stable at a level significantly below peak 2007 levels. Energy markets continue their recovery from the depressed levels experienced in late 2014 and 2015. Heavy equipment and agriculture also continue to show signs of improvement. In general, we are optimistic on expected overall industrial production in 2018."
Industrial Info is tracking more than $11 billion in active U.S. steel-related projects. For related information, see December 4, 2017, article - Capex Momentum Builds at U.S. Steel Mills.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
Industrial Info is tracking more than $1.6 billion in active Nucor projects in the U.S. and Mexico. For related information see, November 22, 2017, article - Nucor to Expand Illinois Steel Mill and September 18, 2017, article - Nucor Approves New Steel Micro Mill.
Despite solid overall market demand in the fourth quarter, Nucor said earnings by its steel mill segment will be hurt by margin compression "as the import surge experienced in the summer of 2017 has been working its way through end markets over the last half of the year."
Through the first 10 months of 2017, total steel imports have increased by an estimated 19.4% compared with the same period last year, Nucor said. Additionally, finished steel imports accounted for an estimated 28% share of the U.S. market in the first 10 months of 2017.
The American Iron and Steel Institute (AISI) reported that year-to-date through October, total and finished steel imports were 32,850,000 and 25,449,000 net tons, respectively.
Steel imports and cargo containers were the main drivers behind a 9% increase in tonnage shipped through the Port of Houston in November, the port authority said Tuesday. "Steel volumes continue to trend upward, totaling 3.4 million tons, reflecting a 57% increase compared to the same period last year," Port Authority Executive Director Roger Guenther said in a press release.
Nucor noted the U.S. Department of Commerce has made several rulings imposing duties on additional steel products that are favorable to the domestic steel industry. Among other things, the Commerce Department made a preliminary determination that corrosion-resistant and cold-rolled steel from Vietnam that originated in China evaded U.S. anti-dumping and anti-subsidy orders. For more information, see December 7, 2017, article - U.S. Slams Steel Imports from Vietnam that Started in China.
Domestic steel shipments were also up for the first 10 months of this year, AISA said on Monday. U.S. steel mills shipped 76,138,524 net tons for the year through October, a 4.8% increase versus shipments of 72,635,819 net tons for the same period in 2016.
Nucor said it was encouraged by market conditions heading into 2018.
"We see recently announced price increases and the downward trend in imports late in the year from the mid-year peak as factors building positive momentum," the company said. "The automotive market remains healthy and continues to be a bright spot for Nucor as we grow our penetration of new automotive platforms. Nonresidential construction markets remain stable at a level significantly below peak 2007 levels. Energy markets continue their recovery from the depressed levels experienced in late 2014 and 2015. Heavy equipment and agriculture also continue to show signs of improvement. In general, we are optimistic on expected overall industrial production in 2018."
Industrial Info is tracking more than $11 billion in active U.S. steel-related projects. For related information, see December 4, 2017, article - Capex Momentum Builds at U.S. Steel Mills.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
