Zhitong Finance APP learned that US steel stocks generally closed up on Thursday. Nucor (NUE.US) closed up 8.39%, Steel Dynamics (STLD.US) closed up 9.99%, U.S. Steel (X.US) closed up 1.63%, Cleveland Cliff (CLF.US) closed up 2.41% , Reliance Steel (RS.US) closed up 3.17%.
Among them, Nucor Steel and Steel Dynamics announced strong fourth-quarter financial results. The financial report shows that Nucor’s Q4 revenue was US$8.724 billion, exceeding the expected US$8.43 billion; earnings per share were US$4.89, which was also better than the expected US$4.19. Moreover, the company expects first-quarter results to shake off last year’s slump, easing some recession fears. Weeks earlier, the company had warned that recession fears could weigh on demand.
Nucor said it saw “a range of demand drivers gathering momentum” in the U.S. steel industry as U.S. companies look to bring manufacturing back to North America and the U.S. government ramps up investment in infrastructure projects.
Nucor noted that its factories were operating at 70% capacity in the fourth quarter, the lowest level since the second quarter of 2020. The company also said the expansion of its Gallatin, Kentucky, flat steel mill, about six months behind schedule, should reach full capacity in the second quarter, while a new plate mill in Brandenburg, Kentucky, should Full production will be achieved by the end of this year.
Steel Dynamics’ fourth-quarter financial report showed that the company’s revenue was $4.83 billion, higher than market expectations of $4.77 billion; earnings per share were $4.37, also higher than market expectations of $3.60. Meanwhile, the company said customer order activity remains healthy and steel prices are firm, and sees North American steel consumption rising in 2023.
Steel Dynamics is a major supplier of steel trusses, decks and other structural steel components used in warehouses, hospitals, schools and other commercial buildings. “Our customers are telling us demand remains solid despite the economic uncertainty,” chief executive Mark Millett said.