Biggest U.S. Steelmaker Sees Demand Improving After Tough Year
By Joe Deaux
January 28, 2020, 8:59 AM EST
Nucor ‘encouraged’ by recent economic trends, upbeat on 2020
Company’s earnings continue positive streak for producers
Nucor Corp., the largest U.S. steel producer, said an improving economic outlook is giving it confidence that 2020 will be a positive year for the company.
That’s encouraging speculation that the domestic industry could be turning a corner after steel prices dropped in 2019 by the most in four years. Producers are getting help from low U.S. interest rates that are making homes and other construction projects more affordable, boosting demand.
Charlotte-based Nucor reported fourth-quarter earnings that exceeded the average estimate of analysts, with the company citing a strong December performance in its steel mills business segment. Last week, Steel Dynamics Inc. reported a profit that topped the highest estimate of analysts and said it sees solid demand for this year.
Nucor forecasting a rebound after prices fell the most in 4 years
“We are encouraged by recent economic trends and confident that our positive momentum will continue in 2020,” Leon Topalian, Nucor’s new chief executive officer, said in a statement. “We believe that the inventory destocking that occurred throughout most of 2019 concluded in the fourth quarter, when customers resumed more normal