Analyst Bill Peterson says Nucor is best positioned to ride out the latest tariff wave, thanks to its product diversification and lower exposure to value-add sheet, which has recently underperformed. Plate and rebar prices, where Nucor has more skin in the game, are holding up stronger and could provide incremental upside heading into 2026.
Tariff Storm Blowing Cleveland, Steel Dynamics, Commercial Metals Too
JPMorgan isn't expecting a summer rally for steel prices. However, the bank sees a firming price floor, especially with scrap costs easing and mill utilization rising.
Why Nucor Leads The Pack?
Under a scenario with hot-rolled coil stabilizing at $925/ton and rebar near $900/ton, Peterson sees Nucor pulling ahead of the pack.
Utilization upside also favors Nucor, which was running at 80% in the first quarter—compared to Steel Dynamics’ 89% and U.S. Steel Corp's (NYSE:X) Flat-Rolled division’s just 65%.
Steel investors are now facing a tale of two narratives: near-term caution versus long-term potential.
For Peterson, the long game still favors Nucor, especially if the tariffs hold and restocking kicks in later this year.
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