Nucor falls after hot roiled coal price cut amid ‘limited’ activity

Nucor shares are moving lower after the company announced a hot roiled coal price cut. “Recently, spot order activity has been limited and not reflective of underlying demand due to a variety of competitive factors, including what appear to be increasing volumes of speculative purchases of additional tons through contract mechanisms at discounted prices. Our CSP aims to provide our customers an accurate price that takes into account these and other relevant market factors, while also offering our customers superior lead times. As a result of the above, effective immediately, the CSP HRC base price for the week of May 6th will be $760/ton for all producing mills, except CSI, where our CSP HRC base price will be $840/ton.” The base price is down from $825 per ton. Shares of Nucor are down 2% to $170.78 in afternoon trading.