Nucor (NUE +0.4%) edges higher even as Q2 earnings and revenues come up short of analyst expectations, saying unusually wet weather and aggressive supply chain destocking have hurt mill order rates in H1.
But NUE says real demand for its products remains strong in key end-use markets, and the company sees healthy conditions in end-use markets that typically account for more than two thirds of its steel shipments, so NUE says it is "cautiously optimistic that pricing has bottomed for most products and that volumes should be more closely aligned with real end-use demand" in H2.
NUE says it shipped 6.72M tons to outside customers during Q2, down 1% Q/Q and down 7% Y/Y; average sales price per ton fell 3% Q/Q and 2% Y/Y.
NUE expects Q3 performance in its raw materials segment to decrease vs. Q2 due to further margin compression in its DRI businesses, while its steel mills segment is forecast lower than Q2 due primarily to lower prices for flat rolled and plate steel.
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