[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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As a core vital raw material for manganese hydrometallurgy, sulfuric acid dominates production costs and process selection across the entire product chain. Major manganese products, including electrolytic manganese, diversified manganese sulfate, and electrolytic manganese dioxide (EMD), adopt distinct production processes with varied acid consumption structures.

In the manganese-based hydrometallurgy industry chain, sulphuric acid is not merely an ordinary auxiliary material, but rather a core lifeline raw material that runs through the production of all product categories, controls production costs, and influences process selection. Mainstream products such as EMM, various grades of manganese sulphate, and EMD differ vastly in production processes and have entirely distinct acid consumption structures, which also leads to completely stratified sensitivities of various manganese products to sulphuric acid price fluctuations. Every round of change in acid prices transmits from top to bottom, directly reshaping the cost structure and market dynamics of the manganese industry chain.

In March 2026, the global steel market experienced a fierce geopolitical "sudden chill." According to the latest data from WSA, global crude steel production in March fell by 4.2% year-on-year to 159.9 million tons. The US-Iran conflict that erupted on Feb 28, and the subsequent blockade of the Strait of Hormuz, have completely disrupted the spring recovery rhythm of the global steel supply chain, with the shadow of energy crises and logistical interruptions rapidly spreading worldwide.

Dear User, Greetings! As the global energy structure transformation continues to deepen, the PV industry has entered a new phase of large-scale expansion and high-quality iterative development, with diversified technology routes and varied module categories becoming normalized features of industry development. Affected by long-term profitability under pressure across the industry and wild swings in upstream raw and auxiliary material prices, the weight of cost factors in the pricing mechanism of the PV module market has continued to increase. To accurately characterize the cost levels of various segmented technology routes, further enhance market price transparency and horizontal comparability, effectively alleviate information asymmetry in the industry, and optimize market transaction efficiency, SMM, after thorough industry survey and optimization of its index system, will officially launch three new PV module cost index price points for TOPCon, BC, and HJT starting from April 30, 2026. The price points released this time are intended for upstream and downstream enterprises to reference current module cost fluctuations, providing market participants with a cost-based pricing reference. Details are as follows: Price Point Names: TOPCon183 PV Module Cost Index TOPCon210 PV Module Cost Index TOPCon210R PV Module Cost Index BC210R PV Module Cost Index HJT210 PV Module Cost Index Price Description: Price Type: PV Module Cost Index Price Description: Module enterprises are classified into three types — integrated, semi-integrated, and specialized. The cost index is calculated by weighting the production proportions of the three enterprise types from the previous quarter, with weights updated quarterly. The accounting scope of this cost index model covers full costs, including fixed asset depreciation, three categories of period expenses, and other related expenditures. Unit: Yuan/W Release Time: 12:00 PM Beijing time on the fifth business day of each week; released earlier in the event of holidays. SMM PV Research Team Apr 2026

[SHFE and LME Aluminum Indicators Strengthen Across the Board, Geopolitical Risks Dominate Short-Term Market] Overall, from a macro perspective, risks of strait transit restrictions and conflict escalation resonated with fundamental supply-side hard damage and low global inventory, jointly providing strong bottom support for aluminum prices. However, weak interest rate cut expectations, China's aluminum ingot inventory buildup exceeding expectations, and adverse expectations on consumption and inflation from recent high fluctuations in oil prices all notably dragged on the upside room for aluminum prices. In the short term, aluminum prices fluctuated at highs.

[SMM Cast Aluminum Alloy Morning Comment: Aluminum Alloy Futures Closed Higher in Overnight Session, Spot Cargo Remained Stable] The aluminum alloy 2606 contract opened at 23,760 yuan/mt during the night session. After the opening, futures prices rose steadily, with prices running above the average price line throughout the session, showing a solid trend structure. Futures saw a slight increase in open interest simultaneously, with open interest edging higher. Volume and momentum were well-coordinated during the rise, and the price center continued to shift upward. Prices during the night session ranged from 23,695 to 23,920 yuan/mt. Prices moved sideways at highs near the close with no notable pullback, and the daily candlestick ultimately closed at 23,890 yuan/mt, up 0.84% for the day.

[SMM Titanium Spot Brief: Titanium Dioxide Prices Rose, Titanium Slag Prices Fell, Titanium Ore Prices Held Steady] On April 10, acid-soluble titanium slag prices fell, while reduced titanium and high-titanium slag prices held steady. Titanium tetrachloride prices rose, and titanium ore prices remained largely stable overall. Titanium dioxide prices saw a broad rise this week, with anatase and rutile grades posting notable gains, while chloride-process titanium dioxide edged up. High-titanium slag prices are expected to hold steady, and titanium concentrate prices are likely to see limited fluctuations.

First, a review of the price trend of secondary aluminum alloy in March: Futures market: The most-traded cast aluminum alloy contract showed pronounced volatility in March—surging sharply in early March to a high of 24,565 yuan/mt; retreating from highs from mid-March, with a low of 22,230 yuan/mt; and rebounding again at month-end, forming an overall "N"-shaped pattern. Entering April, the market shifted to moving sideways, with prices trading in the 23,500–24,000 yuan/mt range. Spot market: Strength in aluminum prices in early March drove ADC12 sharply higher, while in mid-to-late March it fluctuated downward under pressure from pulling back aluminum prices and weakening demand, before rebounding slightly at month-end. As of April 3, SMM ADC12 was quoted at 24,600 yuan/mt, up a cumulative 700 yuan/mt from early March. Price spread: After mid-March, A00 aluminum prices pulled back, while ADC12, supported by costs, saw relatively limited declines, and the price spread widened for a time; at month-end, A00 rebounded on Middle East disruptions, but weakening ADC12 demand caused it to struggle to catch up, and the price spread narrowed rapidly. It has now pulled back to within 100 yuan/mt, at a relatively low level for the same period. Cost side, according to the latest SMM data, the theoretical total cost of the ADC12 industry rose to 23,560 yuan/mt in March, up 4.7 percentage points MoM from February. By cost structure, aluminum scrap cost per mt rose to 21,344 yuan, with its share edging up to 90.6%, remaining the absolutely dominant cost component; affected by the lower center of copper prices, copper cost per mt pulled back to 826 yuan, with its share falling to 3.5%; silicon cost per mt also slipped slightly to 484 yuan, accounting for 2.1%. Overall, driven by higher aluminum prices and rising prices of compliant supply, aluminum scrap prices followed the gains quickly, further lifting its share in total costs. During the same period, the industry's theoretical ADC12 profit was about 694 yuan/mt, and the industry as a whole remained in the profitable range. Entering April, aluminum scrap will still be the core factor driving ADC12 cost fluctuations, and its price trend will closely track the primary aluminum market. At the same time, affected by constraints on compliant supply, industry costs are expected to likely remain elevated and move sideways in April. Supply side, the operating rate of the secondary aluminum alloy industry came in at 53.8% in March, rebounding sharply by 22.4 percentage points MoM and edging down by 1.3 percentage points YoY. After the Lantern Festival, enterprises generally resumed work and production, while the simultaneous recovery in downstream demand and the continued improvement in new orders significantly lifted the operating rate. However, the rebound was still constrained by multiple factors: cost pressure is expected to remain difficult to ease in the short term in April, the strength of the recovery in end-use demand remains uncertain, industry orders are expected to weaken somewhat, and the operating rate will likely pull back slightly from March while remaining broadly stable. Demand side, although downstream enterprises gradually resumed work and production in March, order recovery in end-use sectors such as automobiles fell short of expectations, and the traditional peak-season effect of "Golden March" failed to fully materialize. Downstream profit margins were already limited, leaving buyers highly sensitive to raw material prices. Acceptance of high-priced ADC12 declined markedly, price transmission remained sluggish, and negative market feedback gradually emerged—transactions failed to keep pace during the price upswing, while restocking willingness also remained cautious during the price pullback, with overall procurement mainly focused on small-lot purchases for immediate needs. In addition, some die-casting enterprises reliant on the Middle East market saw export orders decline due to hindered transportation, further weighing on demand performance. Overall, demand in March was weaker than in the same period last year, market wait-and-see sentiment was relatively strong, and prices lacked effective support. Entering April, recovery on the consumption side remained slow, downstream profits stayed under pressure, and although just-in-time procurement continued, the suppressive effect of high prices gradually emerged. Some enterprises may respond by cutting production, and overall demand is expected to be generally stable with slight fall. On the supply side, some small and medium-sized enterprises suspended production temporarily at the beginning of the month, and the operating rate dropped back slightly, leaving limited short-term incremental supply. Overall, the market’s primary contradiction has shifted to insufficient consumption momentum, with a lack of upward impetus, making it difficult for prices to sustain the uptrend. Going forward, attention should focus on the recovery of actual post-holiday orders, aluminum price trends, and changes in macro sentiment: if demand remains weak, the price center is expected to edge lower slightly; if downstream demand improves at the margin or aluminum prices strengthen, prices are likely to receive temporary support.

[SMM Aluminum Alloy Daily Review] Futures side, before midday the most-traded aluminum alloy 2605 contract retreated after a rapid rise and then fluctuated downward. After opening, the price rose rapidly to an intraday high of 23,985 yuan/mt, then pulled back under pressure, with the session low falling to 23,535 yuan/mt. As of the midday close, it stood at 23,630 yuan/mt, down 115 yuan from the previous trading day, a decline of 0.48%. Spot side, ADC12 market prices were mainly stable today. As fluctuations in aluminum prices and aluminum scrap prices narrowed, cost support tended to stabilize, and enterprises generally lacked the motivation to adjust prices. Meanwhile, downstream demand showed no obvious improvement, with procurement still mainly driven by rigid demand, and market transa