SMM11, July 7-the chief executive of Nucor (Nucor) told CNBC on Tuesday that investors "must focus on the economy as a whole" and do not pay too much attention to changes in US President Trump's tariffs on steel imports when considering whether to invest in Nucor.
Nucor is the largest steel producer in the United States. John Feliola (John Ferriola), chairman and chief executive of Nucco, said, "We have heard a lot about tariffs and, of course, tariffs have played a role in the performance of the steel industry, especially Nucor this year. But what really drives the industry and Nucor's performance is the still-strong economy.
The road ahead for US steelmakers has been uncertain since President Obama's tariffs came into effect, as some fear they could push global steel prices to unsustainable levels. In October, Mr Kramer himself said tariffs were "hurting" the steel industry and quoted Nucor's third-quarter results as predicting a decline in fourth-quarter earnings.
Ferriola (Ferriola) believes that a strong economy, higher demand and a stable end market far outweigh the impact of tariffs on its business. "[the economy] is driven by tax reform, deregulation and a very strong energy market, all of which reflect the fact that demand is good."
"the economy is driving demand for steel," he said in an exclusive interview with Mad Money. If you look at our industry demand this year, you will find that it is up 2% from last year.
Of Nucor's 24 end markets, 23 entered the fourth quarter and first half of 2019, "either stable or growing".
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