Nucor Corp. said it is forecasting profits of between US$1.15 and US$1.20 per diluted share, up from fourth quarter 2019 earnings of 35 cents per diluted share. Meanwhile, Steel Dynamics Inc. said it is anticipating earnings in the range of 72 cents to 76 cents per diluted share, up from 56 cents per diluted share. 

The steelmakers said they expect their steel mill operations to benefit from continued strength in their order books and higher flat-rolled steel prices. In fact, World Steel Dynamics’ SteelBenchmarker, its bi-monthly price assessment,  this week pegged U.S. flat-rolled steel prices at US$947/metric ton, the highest they’ve been since mid-2018. 

“Domestic steel demand remains strong, with the automotive and construction sectors leading the momentum. Strong demand coupled with historically low steel inventories throughout the supply chain is supporting higher steel selling values and order entry activity,” Steel Dynamics said. 

It added: “Construction continues to be resilient. The customer order backlog for the company’s steel fabrication platform is at a record high, and customers are optimistic concerning non-residential construction projects, as evidenced through sustained order activity.” 

Nucor, too, said it is expecting strong results from its bar and structural mill, and it sees strength overall as it heads into the new year. 

“The ongoing COVID-19 pandemic continues to cause uncertainty, making it difficult to forecast future market conditions and demand trends. However, the beneficial impact of recent price increases on our sheet mills' performance, as well as the strength of our backlogs and overall lead times, indicates that the current quarter’s momentum will continue into the first quarter of 2021,” Nucor said.