Must-know: An overview of Nucor Corporation
Nucor (NUE) is the largest steel company in the United States with over 27 million tons of production capacity. It operates in the United States through its own facilities and subsidiaries. It also has operations in Europe, United Arab Emirates (or UAE), and Canada. Nucor remains the most profitable and valuable steel company in the U.S.
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A technology leader in the steel industry
Nucor has been a pioneer in technological innovations. It has a history of backing new technologies which others doubted. In the 1970s when most of U.S. companies were making steel through integrated steel mills, Nucor pioneered steel making in mini mills using electric arc furnaces (or EAF). It also pioneered thin slab casting which made it possible to cast slabs four to five times thinner than industry standards. Recently, Nucor has started investing in direct reduced iron (or DRI) plants.
Nucor’s key products
Nucor manufactures both raw steel and steel products like fasteners, girders, joists, and decks. It has a strong presence in the nonresidential construction market. It’s the largest supplier in this segment.
Raw material Segment
In 2008, Nucor acquired David J. Joseph Company, which is the world leader in scrap metal brokerage. It not only helps Nucor to secure steel scrap for its steel plants, but it also helps secure earning brokerage income from third parties. Apart from this, Nucor operates DRI plants. It also has a working interest investment in natural gas drilling, which helps it secure natural gas for its steel plants.
It’s important to note that we are analyzing the recently released second quarter results of Nucor Corporation. Some of the other steel companies listed in the U.S are ArcelorMittal (MT), U.S. Steel Corporation (X), and Reliance Steel & Aluminum (RS). The SPDR S&P Metals and Mining ETF (XME) is an alternate way of getting exposure to the steel industry.