(Bloomberg) -- Shares of Nucor Corp., the largest US steelmaker, dropped by the most in six months after the producer warned that demand for the alloy will remain soft headed into 2025, indicating a rebound may be further off than anticipated.
The Charlotte-based company said it expects fourth-quarter earnings to decrease from the third quarter, with the main driver being lower average steel prices and decreased volumes in its steel mills business segment.
“This guidance was weaker than we had expected and will likely lead to downward pressure on Nucor’s shares,” Christopher LaFemina, a Jefferies analyst, wrote in a note to investors.
Nucor’s stock dropped as much as 8.5% on Tuesday in New York, the largest intraday decline since April 23. The Standard & Poor’s steel index has declined about 5% this year.
The company’s mills segment, which produces raw steel, accounted for nearly 60% of Nucor’s revenue last year. Domestic benchmark hot-rolled coil prices are down more than 35% this year amid lower demand and a higher interest-rate environment.
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