Chad Utermark Executive Vice President of Beam and Plate Products Nucor Corporation March 2017

Transcription

1 Chad Utermark Executive Vice President of Beam and Plate Products Nucor Corporation March 2017

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3 Home Insurance Building William LeBaron Jenney

4 The Rise of the Skyscraper

5 Steel Cage Buildings Still Climbing

6 Nucor Today

7 Great challenges bring great opportunities for great companies.

8 Infrastructure Investment Trump Plan: $1 trillion Tax credit for private investment Only $150 billion taxpayer money Compare to 2015 Highway Bill = $300 billion direct spending 50 Million Tons of Steel Needed

9 Nucor: We re ready

10 Future of NAFTA

11 Future of NAFTA

12 Future of NAFTA 23-Year Old Agreement Opportunity to fix things NAFTA will continue to be an important trading relationship

13 China s Capacity Explosion Estimated Steelmaking Capacity & Apparent Finished Steel Use (ASU) Millions of Net Tons Section 201 Steel Tariff Ends (Dec. 2003) Over 500 Million Tons > Internal Use U.S. CHINA U.S. ASU CHINA ASU Sources: OECD, WorldSteel, AISI, Fitch Ratings

14 The Overcapacity Crisis Million Tons Overcapacity million Global Steel Capacity Global Steel Production China Steel Capacity China Steel Production

15 China Incorporated

16 NAFTA Production vs. China s Exports NAFTA Steel Production Chinese Steel Exports Crude Steel Production (Millions of Metric Tons) mmt mmt 2016 Finished Steel Exports (Million Metric Tons) United States Canada Mexico China Sources: NAFTA WorldSteel Summary 2017; China Worldsteel China Monthly 120

17 The Value of Free Markets Our industry and nations thrive in a system of free and RULES-BASED trade. We all lose if we don t fight trade cheaters and statesupported overcapacity.

18 Global Steel Forum G20 Summit led to formation of Global Forum on Steel Excess Capacity Progress report on the Global Forum expected in 2017 Key outcomes needed: Timeline for capacity reductions System of verification

19 North America - Strong by Nature World s Largest Capital Market Self-Sufficiency in Raw Materials Abundant & Affordable Energy Large Domestic Consumer Market Highly Productive Workforces

20 Trade Laws Must Be Enforced Enforcing the rules of free trade is not protectionism Trade remedies are key to creating a global free market economy We must use the tools available to us to stop illegal imports We must pursue new tools when existing remedies fail

21 Circumvention Investigation 450 Chinese & Vietnamese Finished Steel Imports (Monthly Totals, ) U.S. Imports (Thousands of Net Tons) Vietnam Jan-14 Feb-14 Mar-14 China Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Vietnamese imports steadily displaced China s in 2016! Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Source: US Commerce Dept., AISI

22 China Is Still a Nonmarket Economy China is making its case to be considered a market economy under the terms of its agreement to join the World Trade Organization (WTO) After 15 years, China continues to operate as a non-market economy We continue to work with the our governments and our allies to ensure China remains a non-market economy until they make the necessary reforms

23 North American Steel Trade Committee, NAFTA Steel Trade Monitor NAFTA Finished Steel Imports Metric Tons Finished Steel Import (Extra-NAFTA) 35,000,000 30,000,000 25,000,000 20,000,000 15,000,000 10,000,000 5,000,000 11,829,756 15,718,296 18,265,536 23,430,096 21,383,304 30,901,272 30,190,776 24,716,796 Imports from outside NAFTA are down 20% since 2014, but still well above the 5 prior years

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25 Chad Utermark Executive Vice President of Beam and Plate Products Nucor Corporation March 2017