Are Steel Prices Legit?
Nucor surprised Wall Street on Thursday with a better-than-expected second quarter and announced that the third should be even better. Earnings and revenues were above analysts’ estimates, shipments were up, and the monthly utilization rate jumped 16% from April to June. All of the numbers seemed to point to the US economy's renewed appetite for steel.
The catch, though, was that CEO Dan DiMicco seemed concerned about whether or not the demand was real. Restocking of inventories, he worried, might have been the true driver behind rising steel prices and shipments. And while DiMicco predicted in late June that his industry was at or near a bottom, he said that bottom could last as long as three years.
So which is it, mere stabilization or legitimate proof of recovery? Can those steel prices be trusted? Should investors buy Nucor as a play on the economy’s turn? Cramer invited DiMicco back to the show to find out. Watch the video for the full interview.
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