In his three-month earnings call today, Executive President Leon Topalian said 1.2 million short tonnes (st)/year electric arc furnace and the plant's crucible metallurgical furnace have been commissioned. The company is working to commission the vacuum degasser and casting unit, and the mill is preparing to cast its first plate by the end of the year.
The production expectation for the new plant comes as Nucor's plate shipments decreased by 31 percent y-o-y to 1.25 million st in the first three quarters of 2022.
The U.S. sheet exit assessment has decreased by 16 percent to $1,620/sts since Sept. 20 after peaking in April, which decreased largely following Nucor price cuts. Many plate market participants expect prices to remain under pressure as they are more than twice as much hot-rolled coil (HRC) prices that they have historically followed much more closely. Increased supply expectation and adverse weather from Brandenburg increased the pressure on pricing, decreased purchases.
Nucor's steel plant utilization decreased significantly from 96 percent y-o-y to 77 percent, down by 8 percentage points from the second quarter.
Sheet metal mill shipments decreased by 4% y-o-y to 2.68mn short tonnes (st), while rod shipments decreased by 7.7% to 2.17mn st. Structural volumes decreased by 21 percent to 583,000, while plate shipments decreased by 37 percent to 379,000.
Total sales to external customers decreased by 11% to 6.42mn st this quarter, with the bulk of this decrease falling to 4.55mn st from an 11pc decrease in steel mill volumes.
Nucor posted a profit of $1.69 billion in the third quarter, down by 20 percent from the previous year.
Comments
No comment yet.