Steel Industry Outlook Positive as Prices Rebound
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: NASDAQ.COM
- Steel Price Recovery: In Q1 2026, U.S. hot-rolled coil (HRC) prices surged above $1,100 per short ton, rebounding from lows in Q4 2025, indicating a strong recovery momentum that is expected to enhance profitability for steel producers.
- Strong Non-Residential Construction Demand: Order activities in the non-residential construction market remain robust, supported by steady infrastructure spending, which is anticipated to further drive steel demand, particularly in the U.S. market, enhancing the outlook for steel producers.
- Automotive Market Rebound: With the rise of electric vehicles and government pushes for carbon neutrality, the automotive market is expected to rebound, leading to increased steel demand, especially driven by incentives for hybrid vehicle sales, further solidifying growth potential in the steel industry.
- Challenges from Slowing Chinese Demand: Despite rising global steel prices, a slowdown in China's economy has weakened steel demand, particularly due to a downturn in the real estate market, which could exert pressure on the global steel market in the short term.
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Analyst Views on NUE
Wall Street analysts forecast NUE stock price to fall
10 Analyst Rating
8 Buy
2 Hold
0 Sell
Strong Buy
Current: 252.600
Low
168.00
Averages
179.00
High
200.00
Current: 252.600
Low
168.00
Averages
179.00
High
200.00
About NUE
Nucor Corporation is a manufacturer of steel and steel products, with operating facilities in the United States, Canada and Mexico. The Company also produces and procures ferrous and non-ferrous materials primarily for use in its steel manufacturing business. Its segments include steel mills, steel products and raw materials. Its products include carbon and alloy steel in bars, beams, sheet and plate; hollow structural section tubing; electrical conduit; steel racking; steel piling; steel joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; precision castings; steel fasteners; metal building systems; insulated metal panels; overhead doors; steel grating; wire and wire mesh; and utility structures. The Company, through The David J. Joseph Company and its affiliates, also brokers ferrous and nonferrous metals, pig iron and hot briquetted iron / direct reduced iron; supplies ferro-alloys; and processes ferrous and nonferrous scrap.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Earnings Guidance Increase: Nucor Corporation expects Q2 2026 earnings per share to range from $4.70 to $4.80, with adjusted earnings projected at $4.50 to $4.60 after excluding a non-cash benefit of approximately $0.20, indicating a significant enhancement in profitability.
- Steel Segment Growth: Compared to Q1 2026, earnings across all operating segments are expected to rise in Q2, particularly in the steel mills segment, driven by higher average selling prices and stable volumes, with an anticipated cash refund of approximately $130 million benefiting cost of goods sold.
- Capital Returns: As of June 17, 2026, Nucor has repurchased about 1.12 million shares at an average price of $223.47, returning approximately $630 million to shareholders year-to-date, demonstrating a strong commitment to shareholder returns.
- Earnings Release Schedule: Nucor plans to release its Q2 earnings after market close on July 27, 2026, and will host a conference call on July 28 at 10:00 AM ET to review results, enhancing transparency and investor confidence.
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- Steel Price Recovery: In Q1 2026, U.S. hot-rolled coil (HRC) prices surged above $1,100 per short ton, rebounding from lows in Q4 2025, indicating a strong recovery momentum that is expected to enhance profitability for steel producers.
- Strong Non-Residential Construction Demand: Order activities in the non-residential construction market remain robust, supported by steady infrastructure spending, which is anticipated to further drive steel demand, particularly in the U.S. market, enhancing the outlook for steel producers.
- Automotive Market Rebound: With the rise of electric vehicles and government pushes for carbon neutrality, the automotive market is expected to rebound, leading to increased steel demand, especially driven by incentives for hybrid vehicle sales, further solidifying growth potential in the steel industry.
- Challenges from Slowing Chinese Demand: Despite rising global steel prices, a slowdown in China's economy has weakened steel demand, particularly due to a downturn in the real estate market, which could exert pressure on the global steel market in the short term.
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- Asset Write-down Impact: The company anticipates a $16 million reduction in estimated earnings due to asset writedowns related to relocating a planned second aluminum recycled slab center from Arizona to Mississippi, reflecting a significant strategic shift in asset allocation.
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- Steel Segment Growth: Compared to Q1 2026, earnings across all operating segments are expected to rise in Q2, with the steel mills segment showing the largest increase due to higher average selling prices and stable volumes, alongside approximately $130 million in cash refunds that will lower cost of goods sold.
- Capital Returns: As of June 17, 2026, Nucor has repurchased about 1.12 million shares at an average price of $223.47, returning approximately $630 million to shareholders through buybacks and dividends year-to-date, demonstrating a strong commitment to shareholder returns.
- Earnings Release Schedule: Nucor plans to release its Q2 earnings after market close on July 27, 2026, and will host a conference call on July 28 at 10:00 AM to review results, enhancing transparency and investor confidence.
See More
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- Earnings Guidance Increase: Nucor Corporation expects Q2 2026 earnings per share to range from $4.70 to $4.80, with adjusted earnings projected at $4.50 to $4.60 after excluding a non-cash benefit of approximately $0.20, indicating a significant enhancement in profitability.
- Steel Segment Growth: Compared to Q1 2026, earnings across all operating segments are expected to rise in Q2, particularly in the steel mills segment, driven by higher average selling prices and stable volumes, with an anticipated cash refund of approximately $130 million benefiting cost of goods sold.
- Capital Returns: As of June 17, 2026, Nucor has repurchased about 1.12 million shares at an average price of $223.47, returning approximately $630 million to shareholders year-to-date, demonstrating a strong commitment to shareholder returns.
- Earnings Release Schedule: Nucor plans to release its Q2 earnings after market close on July 27, 2026, and will host a conference call on July 28 at 10:00 AM ET to review results, enhancing transparency and investor confidence.
See More
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- Technical Analysis Tool: Comparing the current share price to the 200-day moving average can provide valuable insights for investors, helping to assess market trends and potential buying opportunities, thereby optimizing investment decisions.
- ETF Trading Mechanism: Exchange-traded funds (ETFs) trade similarly to stocks, where investors are buying and selling 'units' that can be created or destroyed based on investor demand, reflecting changes in market interest for the fund.
- Inflows and Outflows Monitoring: Weekly monitoring of changes in shares outstanding for ETFs helps identify those experiencing notable inflows (new units created) or outflows (old units destroyed), allowing investors to evaluate the impact on underlying assets and gain comprehensive market insights.
See More
New Fed Chair Speaks, Apple Price Hike Looms
- New Fed Chair: Kevin Warsh's assertive tone at his first press conference indicates a potential shift in monetary policy, leading to an overreaction in the market, as evidenced by rising futures this morning, which may influence investor sentiment moving forward.
- Apple Price Increase: Apple plans to raise prices on its iPhone Pro model by approximately $270 due to surging memory costs, while carriers may still offer attractive deals to cushion the impact on consumers, which could affect Apple's competitive positioning in the market.
- Intel Collaboration News: President Trump announced on social media that Apple has agreed to collaborate with Intel to design and manufacture chips in America, resulting in a surge in Intel's stock price, reflecting a strong support for domestic manufacturing and potential growth opportunities.
- Marvell Price Target Increase: KeyBanc raised Marvell's price target from $260 to $385, with analysts expressing optimism about the company's prospects in server networking, indicating strong confidence in its future growth potential.
See More
Steel Industry Outlook Positive as Prices Rebound
- Steel Price Recovery: In Q1 2026, U.S. hot-rolled coil (HRC) prices surged above $1,100 per short ton, rebounding from lows in Q4 2025, indicating a strong recovery momentum that is expected to enhance profitability for steel producers.
- Strong Non-Residential Construction Demand: Order activities in the non-residential construction market remain robust, supported by steady infrastructure spending, which is anticipated to further drive steel demand, particularly in the U.S. market, enhancing the outlook for steel producers.
- Automotive Market Rebound: With the rise of electric vehicles and government pushes for carbon neutrality, the automotive market is expected to rebound, leading to increased steel demand, especially driven by incentives for hybrid vehicle sales, further solidifying growth potential in the steel industry.
- Challenges from Slowing Chinese Demand: Despite rising global steel prices, a slowdown in China's economy has weakened steel demand, particularly due to a downturn in the real estate market, which could exert pressure on the global steel market in the short term.
See More
Steel Dynamics Issues Q2 Earnings Guidance Below Expectations
- Earnings Guidance Cut: Steel Dynamics expects Q2 earnings of $3.51-$3.55 per share, significantly below the $4.16 analyst consensus, although this marks an increase from Q1's $2.78 and last year's Q2's $2.01, indicating volatility in profitability.
- Asset Write-down Impact: The company anticipates a $16 million reduction in estimated earnings due to asset writedowns related to relocating a planned second aluminum recycled slab center from Arizona to Mississippi, reflecting a significant strategic shift in asset allocation.
- Steel Operations Outlook: While Q2 earnings from steel fabrication are expected to be slightly below Q1, overall profitability is projected to improve significantly due to strong demand and metal margin expansion, indicating resilience in market demand.
- Competitor Performance: In contrast, Nucor forecasts Q2 earnings of $4.50-$4.60 per share, exceeding analyst expectations, highlighting disparities in profitability among industry players that may pressure Steel Dynamics' market performance.
See More
Nucor Corporation Issues Q2 2026 Earnings Guidance
- Earnings Guidance Increase: Nucor expects Q2 2026 earnings per share to range from $4.70 to $4.80, with adjusted earnings projected at $4.50 to $4.60 after excluding a non-cash benefit of approximately $0.20, indicating a significant enhancement in profitability.
- Steel Segment Growth: Compared to Q1 2026, earnings across all operating segments are expected to rise in Q2, with the steel mills segment showing the largest increase due to higher average selling prices and stable volumes, alongside approximately $130 million in cash refunds that will lower cost of goods sold.
- Capital Returns: As of June 17, 2026, Nucor has repurchased about 1.12 million shares at an average price of $223.47, returning approximately $630 million to shareholders through buybacks and dividends year-to-date, demonstrating a strong commitment to shareholder returns.
- Earnings Release Schedule: Nucor plans to release its Q2 earnings after market close on July 27, 2026, and will host a conference call on July 28 at 10:00 AM to review results, enhancing transparency and investor confidence.
See More
