Nucor Earnings Hit by Weak Steel Steel Demand and Falling Prices

SEATTLE (Scrap Monster): Nucor Corporation (NYSE: NUE) continues to lead the U.S. steel sector as the nation’s largest producer, but its latest quarterly results highlight growing pressure from weaker demand and pricing trends.

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The company, which operates across its steel mills, steel products, and raw materials segments, posted lower net earnings, primarily driven by declining average selling prices and weaker shipment volumes. Steel mill shipments dropped to around 4.8 million tons, indicating subdued demand from major end-use sectors such as automotive and construction amid persistently high interest rates. Although the raw materials segment offered some support through increased scrap processing activity, overall EBITDA margins compressed due to fluctuations in input costs.

Nucor’s business model, centered on electric arc furnace technology using recycled scrap, remains a competitive advantage. However, ferrous scrap prices—accounting for nearly 70% of production costs—continue to influence profitability, even as prices stabilize in the $350–$400 per ton range.

The company is advancing capacity expansion projects, including a new sheet mill in West Virginia, targeting higher-margin products. Meanwhile, competition from imports persists despite Section 232 tariffs, with flows from Vietnam, Mexico, and Canada weighing on domestic pricing.