Nucor expects long product demand to remain steady

US steel producer Nucor expects long product demand to remain steady in the second half of fiscal 2020, Kallanish reports.

In its second-quarter earnings conference call, the company revealed that it expects its long products divisions to benefit from sustained demand in a solid non-residential construction market for the remainder of the year.

“We continue to see the benefits of our recent initiatives to improve the performance of our businesses that serve the [non-residential construction markets], specifically in rebar fabrication and metal buildings,” says ceo Leon Topalian.

Following a volume decline in Q2 as a result of Covid-19, the company expects a strong rebound in its long divisions as development projects come to fruition. Specifically mentioned during the conference is the company’s Frostproof, Florida, rebar micro mill, which is on track to start-up in Q4.

“Our new Sedalia rebar micro mill Missouri has already achieved positive Ebitda from June,” adds Topalian. “We forecast that the mill will be bottom-line profitable by September, and will be capable of full production capacity early in the fourth quarter.”

“Year-over-year, we’re up 8% in rebar and then 3% on the construction product side,” notes cfo Jim Frias.