China Steel Market: [Flat Products] Flat-product export prices steady, deals remain hard to close HRC and other flat-product export prices held broadly steady today, with HRC deals at 490-500 USD/tonne FOB. Northeastern mills said deals remain hard to close; North China mills offer lower prices, leaving the Northeast less competitive, with only small-lot transactions done. [Billet] Billet export quotes hold steady, Middle East inquiries up slightly but trading mild Billet export quotes were stable today, with workable FOB offers at 463-465 USD/tonne. The market noted that with geopolitics unsettled and strait passage repeatedly disrupted, Middle East inquiries rose slightly, but Chinese export billet offers held no clear edge; wary of future costs, mills showed limited willingness to discount, leaving trading mild. [Rebar] Rebar export quotes steady, some mills curb orders for maintenance Rebar export quotes were stable today, with workable FOB prices at 481-483 USD/tonne. Traders said export inquiries showed no clear change; some mills are under maintenance and deliberately curbing order intake to safeguard domestic supply. Off-season demand and overseas price pressure kept overall trading weak. International Steel Market: [Southeast Asia] Southeast Asia slab exports soften, Indonesian offers cut Southeast Asian slab trading was thin in June and regional export prices kept falling. Indonesian mills cut August-shipment HRCgrade slab offers to 495 USD/tonne FOB, down 15 USD/tonne week-on-week and 20 USD/tonne from early June on weak sales; Vietnamese slab is offered near 510 USD/tonne FOB with limited deals. On imports, Chinese slab recently traded at 510 USD/tonne CFR, with workable levels now no higher than 500 USD/tonne CFR. [European Union] Off-season and policy wait-and-see leave EU HRC hike unlikely EU local steel demand stayed weak on poor weather and extended summer holidays, pressuring HRC prices lower. Some mills quote around 775-781 USD/tonne EXW, but traders report actual deals are lower and vary by region. Earlier rumors that major mills planned a 57-80 USD/tonne hike in July-August look uncertain given current weakness. Buyers are sidelined, waiting for clarity after July 1, with the near-term outlook still under pressure. [India] India HRC prices hold, weak demand caps deals India's domestic HRC trade prices held this week at about 601 USD/tonne EXW in Mumbai and 617 USD/tonne EXW in Chennai. Monsoon-driven weak demand kept buyers restocking only as needed, with supply-chain inventories high. The market awaits mills' July base-price guidance, with any rise seen limited at about 8 USD/tonne. High prices, high stocks and rising Chinese finished-steel imports left sentiment bearish, with weakness possibly lasting through end-October. [United States] Nucor ends rally, US HRC mill price stays elevated Nucor held its HRC price unchanged this week, the first pause since late January, ending a 22-week run of increases. For the week ended June 29, Nucor's HRC was steady at 1245 USD/tonne EXW and California Steel Industries flat at 1300 USD/tonne EXW. Nucor's lead times are typically 3 to 5 weeks. Citing domestic and overseas HRC price trends and strong demand, Nucor still expects a robust HRC market in the coming months.

[United States] US steelmaker Nucor kept its hot-rolled coil (HRC) offers unchanged this week, marking the first pause in price hikes since late January and ending a 22-week upward streak. For the week ending June 29, Nucor's HRC offer remained stable at 1245 USD/tonne EXW, while California Steel Industries' price also held flat at 1300 USD/tonne EXW. Nucor's delivery times are currently ranging between 3 and 5 weeks. Based on domestic and global HRC price trends as well as robust current demand, Nucor continues to expect the HRC market to remain strong in the coming months.

This week, the overseas rare earth market remained stable overall. Quotes for cerium oxide, lanthanum oxide, Pr-Nd oxide, dysprosium and terbium oxides, and corresponding metals on FOB/CIF terms were largely steady. The mild adjustments in China’s domestic prices had not yet been transmitted outside China, with sluggish trading and continued shrinkage in deliveries. On the project front, the focus was on building non-China supply chains in the West: Australia’s Iluka Eneabba refinery secured a A$1.65 billion federal non-recourse loan and signed a four-year, 1,200 mt magnetic material rare earth offtake agreement with an unnamed global automaker; US-based Energy Fuels planned to acquire German magnetic material producer VAC for $1.9 billion, complemented by a combined $1.45 billion dual-line loan from the US Strategic Capital Office and the Department of Defense to expand capacity at its White Mesa facility; Canada’s Ucore shipped NdPr oxide samples with 99.5% purity for downstream qualification; in South America, Aclara received environmental approval for its Penco project in Chile; local processing projects in Nigeria and South Africa also advanced simultaneously.

2025 Global Steel Mill Profitability Divergence In 2025, steel mill profitability diverged across different global regions. North American market, US-based Cleveland-Cliffs posted a net loss of $1.478 billion in 2025, with losses widening YoY; US-based Nucor reported net profit of $1.74 billion in 2025, down 13.58% YoY. South American market, Brazil's Gerdau S.A. posted net profit of $248 million in 2025, down 70.69% YoY. European market, Luxembourg-based ArcelorMittal reported net profit of $3.15 billion in 2025, up 135.4% YoY; Austria's voestalpine GROUP posted net profit of $109 million in 2025, up 178.01% YoY. Asian market, South Korea's Hyundai Steel reported net profit of approximately $680,000 in 2025, down 88.89% YoY; South Korea's POSCO Steel posted net profit of $776 million in 2025, up 26.7% YoY; China's Valin reported net profit of approximately $383 million in 2025, up 28.49% YoY. Amid Declining Steel Prices Across Multiple Global Regions, Chinese Steel Mill Profits Performed Relatively Well In 2025, steel prices declined across most global regions. Taking hot-rolled coil as an example, Black Sea export FOB prices fell 14% YoY, Turkish export FOB prices fell 11% YoY, export FOB prices from China, Japan, and India as well as EU import CFR prices fell 9% YoY, Southeast Asian import CFR prices fell 7%, while US import CFR prices rose 8%. A comparison of 2025 revenue and net profitability among selected global steelmakers revealed that among those with higher revenue (>$10 billion), Chinese steelmakers slightly outperformed their ex-China counterparts in net profit.

[SMM Steel] US steelmaker Nucor officially opened its Lexington rebar micro mill in North Carolina, adding 430,000 short tons of annual rebar capacity to support construction and infrastructure demand along the US East Coast. The project, initially announced in 2022 with a 350 million USD budget, was completed at around 440 million USD. The mill produces rebar using nearly 100% recycled scrap and employs around 200 workers. Nucor also plans to establish a nearby rebar fabrication facility to strengthen regional supply capabilities.

[SMM Global Steel Enterprise Special Report] A Detailed Analysis of US "Steel King" Nucor: 100% Electric Arc Furnace Forging High Profits, Vertical Integration Mitigating Cost Fluctuations Nucor Corporation is a company incorporated in Delaware in 1958. The company and its subsidiaries are engaged in the manufacture of steel and steel products. It also produces and procures ferrous and non-ferrous metal materials, primarily for use in its steelmaking operations. Most of its operating facilities and clients are located in North America. Its operations include international trading and sales companies responsible for buying and selling steel and steel products manufactured by the company and others. Nucor is also the largest recycler in North America, using steel scrap as the primary raw material for producing steel and steel products. In 2025, it recycled approximately 20 million gross tons of steel scrap. Operating Performance Data source: Nucor Corporation Annual Report、SMM Reasons behind the performance changes: ① Decline in gross profit: The primary reason for the decline in gross profit in 2025 was the compression of profit margins in the steel products segment. Due to lower average selling prices, gross profits from the grating and decking, building systems, and rebar fabrication businesses under this segment all experienced significant declines. ② Steel mill segment growth: In contrast, gross profit in the steel mill segment increased, primarily driven by higher sales and improved steel industry spreads. ③ Investment expenditures: Over the past three years, Nucor invested approximately $9.73 billion in capital expenditures and acquisitions, aiming to expand its product portfolio and enhance operational flexibility. Segments, Major Products, and Marketing Nucor reports its results in three segments: the steel mills segment, the steel products segment, and the raw materials segment. The steel mills segment is Nucor's largest segment, accounting for 62% of the company's sales to external clients for the fiscal year ended 2025. It primarily sells its products to steel service centers, manufacturers, and fabricating enterprises located in the US, Canada, and Mexico. In 2025, the steel mills segment sold approximately 19,848 kt of products to external clients. Data source: Nucor Corporation Annual Report、SMM The Steel Products segment primarily produces high-value-added downstream construction and industrial components, holding leading positions across the U.S. in multiple sub-segments including steel joists, prefabricated metal buildings, and insulated metal panels. It accounted for 29% of the Company's net sales to external clients for the year ended 2025. In 2025, total sales of major products in the Steel Products segment were approximately 1.478 million mt, including approximately 658,000 mt of steel joists and joist girders, approximately 436,000 mt of steel deck, and approximately 384,000 mt of metal building systems. Although physical sales volume (tonnage) was far below that of the Steel Mills segment, the per-mt selling price and profit margin were much higher than those of basic steel, and the segment also ranked first in market share across the U.S. in multiple areas. Data source: Nucor Corporation Annual Report、SMM The Raw Materials segment is the cornerstone of Nucor's vertical integration strategy, primarily operated through its wholly-owned subsidiary The David J. Joseph Company (DJJ), and manages DRI production facilities in Louisiana and Trinidad. By blending DRI with steel scrap, it supports electric arc furnace (EAF) production of higher-grade sheets & plates while ensuring cost advantages and supply security of raw materials. It accounted for 9% of the Company's net sales to external clients for the year ended 2025. In 2025, approximately 20 million gross tons of steel scrap were recycled and processed. Data source: Nucor Corporation Annual Report、SMM Clients and Markets Data source: Nucor Corporation Annual Report、SMM Major Development Projects in Recent Years The vast majority (91%) of Nucor's capital was allocated to internal construction (CapEx), strengthening core competitiveness through technology upgrades (such as electric arc furnaces and micro mills); a small portion was used for strategic acquisitions to achieve "outward expansion" into high-margin downstream areas. Through acquisitions such as SWDP, the company quickly entered high-barrier, high-growth sub-segments including data centers and green energy, making its business structure more resilient to cyclical downturns. Data source: Nucor Corporation Annual Report、SMM Core Logic of Vertical Integration for Cost Reduction: Raw Material Supply Structure Data source: Nucor Corporation Annual Report、SMM Core Risk Factors The greatest risk facing Nucor is a combination of internal and external challenges — internally, cost fluctuations in steel scrap and energy; externally, the impact of low-priced imported steel resulting from global (especially China's) overcapacity. Specifically: 1. Core Industry Risks ① Severe global supply-demand imbalance: Global steel surplus capacity reached 704 million net mt in 2025 (8 times US annual production). It is expected to further increase to 795 million mt by 2027. ② Regional impact: China's annual production has exceeded 1 billion mt in each of the past 8 years, and Chinese steelmakers continue to invest in new capacity in Southeast Asia and Africa. ② Import shock: This surplus leads to a flood of low-priced steel into the US market, creating significant downward pressure on Nucor's product prices, sales, and profit margins. 2. Production Cost Risks ① Steel scrap price sensitivity: Nucor uses 100% electric arc furnaces (EAF), with steel scrap being the largest cost item. Steel scrap prices fluctuate significantly and are beyond Nucor's control. ② Supply chain uncertainty: Although Nucor has achieved a degree of self-sufficiency through its DRI plants and DJJ recycling system, pig iron and iron ore pellets still rely on international procurement, facing geopolitical risks (e.g., Ukraine, Russia, Brazil). 3. Operational Challenges ① Energy-intensive nature: Steelmaking relies on large amounts of electricity (for melting) and natural gas (for heating and DRI production). ② Cost pass-through: Energy prices are affected by demand, the regulatory environment, and transmission infrastructure (pipelines/power grid), and cost surges may erode profits. 4. Compliance and ESG Risks ① Emission reduction pressure: The steel industry faces intense scrutiny due to greenhouse gas (GHG) emissions. ② Policy risk: Although Nucor's emission intensity is far lower than its blast furnace peers, increasingly stringent environmental protection laws and regulations may increase capital expenditures or restrict operations at existing facilities. 5. End-Use Market Risks ① Industry cyclicality: The steel industry is highly correlated with the macro economy. ② End-use market fluctuations: Nucor's largest market is non-residential construction. If this sector (e.g., commercial offices, industrial facilities) contracts due to high interest rates or economic recession, it will directly impact Nucor's performance severely. Copyright and Intellectual Property Statement: This report is independently created or compiled by SMM Information & Technology Co., Ltd. (hereinafter referred to as "SMM"), and SMM legally enjoys complete copyright and related intellectual property rights. The copyright, trademark rights, domain name rights, commercial data information property rights, and other related intellectual property rights of all content contained in this report (including but not limited to information, articles, data, charts, pictures, audio, video, logos, advertisements, trademarks, trade names, domain names, layout designs, etc.) are owned or held by SMM or its related right holders. 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