Nucor steel production lowest since 2Q 2020

Leading US steelmarker Nucor ran its mills at only 70pc in the fourth quarter, the lowest rate since the beginning of the Covid-19 pandemic in the second quarter of 2020.

The electric arc furnace (EAF) steelmaker ran its mills at 68pc of capacity from April-June 2020, when the industry was shutting down amid the beginning stages of the global pandemic.

Fourth quarter 2022's utilization rate fell by 19 percentage points from the same period of 2021 and was down from 77pc in the third quarter.

Fewer shipments translated into lower utilization rates. Shipments fell by 13pc in the fourth quarter to 5.1mn short tons as service centers and other customers showed more caution, Nucor said.

Falling prices through much of 2022 led many service centers to hold off on purchasing flat steel products as they worked to lower their inventories and rid themselves of higher-priced material.

The Argus US hot rolled coil (HRC) Midwest ex-works assessment fell by 57pc during 2022 to $683/st, with pricing declining during most of the year.

By Rye Druzin