Core Insights - Investing in Berkshire Hathaway has historically outperformed the S&P 500 and other major indexes, making it a closely watched indicator for investors [1] - Berkshire Hathaway has recently added Nucor, North America's largest steel company, to its equity portfolio, which may attract both income and growth investors [2] Company Overview - Nucor has invested over $15 billion since 2017 to expand its operations, including facility upgrades, new plants, and acquisitions, which are now starting to generate revenue and cash flow [4] - The company expects a significant increase in free cash flow in the latter half of the year due to reduced capital spending and favorable market conditions, as noted by CFO Steve Laxton [5] Financial Performance - Nucor is recognized as a Dividend King, with an expected dividend increase in 2025 marking its 53rd consecutive annual raise, indicating strong income potential for shareholders [6] Investment Considerations - Berkshire Hathaway's 3% stake in Nucor suggests expectations of a recovery in the housing sector, as the company also invested in homebuilders [5][7] - Despite Nucor's potential, it was not included in a list of the top 10 stocks recommended by The Motley Fool Stock Advisor, which may indicate varying opinions on its investment attractiveness [8]

Company Overview - Nucor is the largest and most diversified steel company in North America, focusing on producing steel through electric arc mini-mills, which utilize electricity and scrap steel for recycling [2][4][5] - The company has expanded its business to include higher-margin specialty steel products, such as building parts, and has made recent acquisitions in the clean energy sector and data center operations [5] Production Method - Unlike traditional blast furnaces that require iron ore and metallurgical coal, Nucor's electric arc mini-mills have lower costs and greater flexibility, allowing for easier adjustments in production based on demand [2][4] - This production method contributes to stronger profitability for Nucor throughout the cyclical nature of the steel industry [4] Market Position and Investment Sentiment - Nucor has experienced fluctuations in market favor, being out of favor on Wall Street at times, which presents buying opportunities for contrarian investors [6][7] - The recent investment by Berkshire Hathaway in Nucor reinforces confidence in the company's long-term prospects, aligning with the belief that Nucor is a solid investment choice [6]

Iron ore advances as China’s daily steel output shows signs of improvement, while shipments from major exporter Brazil slowed https://t.co/n9q7JQGQaF ...

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. U.S. Democrats have reportedly called on the Trump administration to address China’s “structural overproduction” as part of any future bilateral trade agreement. Democrats Urge Binding Rules In US-China Trade Deal Talks Democratic members of the House of Representatives committee on China have urged the Trump administration to incorporate “binding requirements” in any potential trade deal with China. Thes ...

A sustained rise in energy prices in South Africa is threatening to smother an industry that makes a key stainless-steel ingredient and alter supply chains to the US and other nations https://t.co/neAD4m5B9r ...

China churned out less coal and steel in August as the government tightened controls on production https://t.co/jjnCg5k3IK ...

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - This week, steel prices maintained a weak and volatile trend. The profit of power - off - peak electricity for short - process steel decreased and fell into losses, leading to a reduction in production. The profit of long - process steel also fell into losses, but after the parade, the hot metal production quickly recovered to over 2.4 million tons. The overall supply remained high. The demand for hot - rolled coils recovered rapidly, while the demand for rebar declined due to large warehouse receipt pressure. The overall inventory continued to accumulate, with the rebar inventory accumulating faster than last year. It is expected that the short - term steel prices will maintain a bottom - oscillating trend. The trading strategy suggests maintaining a wait - and - see approach for both arbitrage and options [4][7]. 3. Summary According to Relevant Catalogs 3.1 Chapter 1: Steel Market Summary and Outlook 3.1.1 Market Summary - **Supply**: This week, the small - sample production of rebar was 2.1868 million tons (- 0.0188 million tons), and that of hot - rolled coils was 3.1424 million tons (- 0.105 million tons). The daily average hot metal output of 247 blast furnaces was 2.4055 million tons (+ 0.1171 million tons), and the capacity utilization rate of 49 independent electric arc furnace steel mills was 35.2% (- 0.3%). The cost of flat - rate electricity for electric furnaces in East China was about 3,373 yuan/ton (converted to the futures price), with a profit of - 166.92 yuan/ton. The cost of off - peak electricity was about 3,208 yuan/ton (converted to theoretical weight), and the profit of off - peak electricity for the third - tier rebar in East China was - 2 yuan/ton [4]. - **Demand**: The small - sample apparent demand for rebar was 2.0207 million tons (- 0.04 million tons), and that for hot - rolled coils was 3.0536 million tons (+ 0.208 million tons). From January to July, the growth rate of China's fixed - asset investment decreased month - on - month, and the incremental investment in domestic projects was insufficient. In July, the decline in housing sales, land acquisition, new construction, and completion areas widened, and the overall demand for housing construction was weak. The manufacturing PMI contracted, and the new orders, production, and export data all declined. The production and export of Chinese automobiles in July increased year - on - year, but the industry profit continued to shrink. The production schedule of three major white goods in September decreased year - on - year, and it is expected to decline further in October. The initial value of the US manufacturing PMI in August reached a 39 - month high, and the initial value of the eurozone manufacturing PMI in August returned to the expansion range for the first time in three years [4]. - **Inventory**: The rebar inventory in steel mills decreased by 47,100 tons, and the social inventory increased by 185,700 tons, with a total increase of 138,600 tons. The hot - rolled coil inventory in steel mills increased by 9,000 tons, and the social inventory decreased by 19,200 tons, with a total decrease of 10,200 tons. The total inventory of five major steel products in steel mills decreased by 35,000 tons, and the social inventory increased by 174,100 tons, with a total increase of 139,100 tons [4]. 3.1.2 Market Outlook - It is expected that the rebar production will continue to decrease due to serious losses in both short - and long - process production, while the hot - rolled coil production will continue to resume as it remains profitable. The overall inventory will continue to accumulate, with the rebar inventory accumulating faster than last year, and the hot - rolled coil inventory starting to decline. The steel prices are expected to maintain a bottom - oscillating trend in the short term. In September, attention should be paid to the peak - season demand, coal mine safety inspections, overseas tariffs, and domestic macro and industrial policies. The trading strategy suggests a bottom - oscillating trend for single - side trading and a wait - and - see approach for both arbitrage and options [7]. 3.2 Chapter 2: Price and Profit Review - **Spot Prices**: On Friday, the aggregated price of rebar in Shanghai was 3,220 yuan (- 20 yuan), and in Beijing was 3,160 yuan (- 30 yuan). The price of hot - rolled coils in Shanghai was 3,380 yuan (unchanged), and that of HBIS hot - rolled coils in Tianjin was 3,310 yuan (unchanged) [11]. - **Profits**: The flat - rate electricity profit of electric furnaces in East China was - 166 yuan (- 39 yuan), and the off - peak electricity profit was - 2 yuan (- 39 yuan) [29]. 3.3 Chapter 3: Important Domestic and Overseas Macroeconomic Data - **US Data**: The unadjusted CPI annual rate in the US in August reached 2.9%, the highest since January, in line with market expectations. The seasonally adjusted CPI monthly rate was 0.4%, higher than the expected 0.3%. The number of initial jobless claims in the week of September 6 was 263,000, higher than the expected 235,000 [31]. - **Chinese Data**: In August, the retail sales of the national passenger car market reached 1.995 million units, a year - on - year increase of 4.6%. From January to August, the cumulative retail sales were 14.741 million units, a year - on - year increase of 9.5%. In July, the new social financing was 1.13 trillion yuan, with new RMB loans of - 5 billion yuan. The loans on the household side were - 48.93 billion yuan, and enterprise loans were 60 trillion yuan. From January to July 2025, the cumulative year - on - year growth rate of China's fixed - asset investment was + 1.6%, with a decline in growth rate month - on - month [31][38]. - **Egyptian Data**: Egypt launched safeguard measure investigations on imported steel billets, cold - rolled coils, galvanized sheets, and pre - painted sheets on September 10, 2025, and made a positive preliminary ruling on imported hot - rolled coils on September 10, suggesting the collection of temporary safeguard measure taxes from September 14, 2025, to April 1, 2026 [31]. 3.4 Chapter 4: Steel Supply, Demand, and Inventory Situation 3.4.1 Supply - The daily average hot metal output of 247 blast furnaces was 2.4055 million tons (+ 0.1171 million tons), and the capacity utilization rate of 49 independent electric arc furnace steel mills was 34.7% (- 0.5%) [56]. - The small - sample production of rebar was 2.1193 million tons, a month - on - month decrease of 0.0675 million tons, and that of hot - rolled coils was 3.2514 million tons, a month - on - month increase of 0.109 million tons [62]. 3.4.2 Demand - The small - sample apparent demand for rebar was 1.9807 million tons, a month - on - month decrease of 0.04 million tons, and that for hot - rolled coils was 3.2616 million tons, a month - on - month increase of 0.208 million tons [65]. - As of September 9, the capital availability rate of sample construction sites was 59.24%, a week - on - week decrease of 0.16 percentage points. The capital availability rate of non - housing construction projects was 61.03%, a week - on - week increase of 0.02 percentage points, while that of housing construction projects was 50.75%, a week - on - week decrease of 0.64 percentage points [74]. - From January to July 2025, China's cumulative steel exports were 67.983 million tons, a year - on - year increase of 11.4%. In July, the steel exports were 9.836 million tons, a month - on - month increase of 0.158 million tons. The high - frequency data in August showed that direct steel exports remained high, but the export profit shrank recently [77]. 3.4.3 Inventory - The overall inventory situation showed that the rebar inventory continued to accumulate, while the hot - rolled coil inventory started to decline. The total rebar inventory and its breakdown into social and steel mill inventories, as well as the total hot - rolled coil inventory and its breakdown, are presented in the relevant graphs [82][84].

Although the chosen company is traditional in many ways, it's well positioned to take advantage of present and future trends.One of the best ways for any stock to attract a wave of attention is to be tapped for inclusion in the equity portfolio of Warren Buffett's Berkshire Hathaway (BRK.A -0.55%) (BRK.B -0.59%). That's what happened to top steelmaker Nucor (NUE -1.57%) in mid-August, when the company made its debut in Berkshire's closely watched 13F quarterly portfolio update. Here's a glance at Nucor and ...

Industry Overview - The North American steel sector is facing weak pricing and muted demand growth, leading to cautious investor sentiment due to a lack of clear catalysts [1] - Hot Rolled Coil (HRC) prices have decreased by 6% quarter-to-date, while scrap prices have remained stable, failing to alleviate margin pressures [2] - Real demand in the sector remains weak, and inventories are deemed adequate, prompting a cautious approach from buyers [4] Market Dynamics - Mills have gained market share from imports, supported by structural improvements in metal spreads compared to pre-pandemic and 2024 averages [3] - Utilization rates have risen above 79%, aided by a significant drop in imports, which fell by 16% month-over-month and 21% year-over-year in August, alongside a 2 million-ton increase in domestic shipments this year [3] Future Outlook - JP Morgan anticipates that the uncertain pricing environment, range-bound trading, and weak demand will persist through the fourth quarter [4] - Smaller fall outages compared to last year and rising production present additional challenges, with stronger growth potentially reliant on multiple rate cuts and clearer trade policies with Mexico and Canada, which are unlikely to materialize soon [5] Company Performance - JP Morgan models a 4% earnings decline for Nucor and a 6% decline for Steel Dynamics in the third quarter, citing weaker pricing and shipment risks [6] - Nucor's results are expected to remain resilient due to softer Brazilian pig iron tariffs, which may offset pressure on plate pricing [6] - Steel Dynamics is facing challenges from lingering coated inventory and ongoing losses at its aluminum rolling mill [6] Investment Ratings - JP Morgan maintains Neutral ratings for Steel Dynamics with a price forecast of $150, Cleveland-Cliffs at $10, and Commercial Metals Company at $54 [6] - Nucor is rated Overweight with a price forecast of $165, while Reliance Steel & Aluminum also holds an Overweight rating with a price forecast of $350 [6]

Core Viewpoint - The European Union's aluminium sector is advocating for the imposition of approximately 30% duties on scrap metal exports to prevent domestic shortages and maintain competitiveness against Asian buyers [1][2][3]. Group 1: Export Trends and Economic Impact - EU aluminium scrap exports reached a record 1.26 million metric tons in 2024, marking a 50% increase compared to five years ago, with a significant portion directed towards Asia [1]. - The situation has deteriorated due to U.S. import tariffs, which are set at 50% for aluminium but only 15% for scrap, leading to increased scrap imports into the U.S. and a shift in focus for Asian buyers towards EU supplies [2]. Group 2: Policy and Industry Response - European Aluminium and Eurofer have engaged with the European Commission to advocate for an export levy, emphasizing the need for public policy to address market failures and protect Europe's strategic interests [3]. - The EU has begun monitoring scrap exports since July and plans to evaluate the necessity of action by the end of the third quarter [3]. Group 3: Recycling and Environmental Considerations - Scrap is crucial not only for domestic producers but also for the sector's decarbonization efforts, as recycling aluminium consumes 95% less energy than producing it from mined bauxite [4]. - European companies have invested €700 million (approximately $821 million) to enhance recycling furnace capacity to 12 million tons [4]. Group 4: Global Context and Domestic Challenges - Many non-EU countries, including India and China, already impose restrictions on metal scrap exports, highlighting a global trend towards limiting such exports [5]. - The recycling industry has pointed out that the rise in scrap exports is due to low domestic demand and inadequate capacity to process mixed scrap, such as that from shredded vehicles [6].