New Report Preview – Steel Market

As expected, Nucor announced today a new $290m expansion plan that will lift the company’s SBQ and wire rod capacity by a combined 1 million tons by the end of 2013.

The new capacity will be high value-add and high-margin and will leverage unutilized commodity grade capacity and is consistent with the company’s theme of increased organic growth.

We’re very excited to see Nucor doing this expansion. It’s exactly the company’s sweet spot – Nucor’s roots are in organic growth. The company is leveraging their current platform to expand and add value in their existing operations. These kinds of expenditures are extraordinarily high return and Nucor has been doing a great job of using the current weak environment to expand their value-added footprint.

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