Capital Expenditure and Start-Up Costs
Q: What's the update on CapEx and start-up costs?
A: Nucor expects $3.5 billion in CapEx spending this year, with elevated levels in the next couple of years as they undertake projects totaling about $6.5 billion. Start-up costs of $137 million were primarily related to the Brandenburg and West Virginia projects, with Brandenburg having a slightly bigger impact.

Raw Material Strategy and Electra Investment
Q: What's the update on raw material strategy and Electra?
A: Nucor is increasing its low copper shred capacity to about 2.1 million tons shortly, aiming to reach 5.5 to 6 million tons in a couple of years. Including 4 million tons of DRI, they will control about 10 million tons of metallics, roughly two-thirds of their needs. They remain excited about their investment in Electra, an innovative low-emission iron-making technology, and are considering additional investments.

Plate Demand and Pricing Outlook
Q: Has plate pricing hit bottom, and what's the demand outlook?
A: Despite softness in interest rate-sensitive markets and increased imports affecting pricing, Nucor sees bright spots ahead. They expect lower imports in the second half, strong demand in grids and power transmission, and a pickup in onshore wind late in the second half. Impacts from IIJA funding are expected to increase in late 2024 and early 2025.

Steel Products Segment Margin Expectations
Q: How are margins in the steel products segment expected to evolve?
A: Nucor anticipates a decline in the third quarter due to working through higher-priced backlog but expects resilience from strong backlogs in Vulcraft, joist, and deck. Potential rate cuts could positively impact the segment in Q4 and into Q1.

Automation Impact on Margins
Q: How will automation affect margins and competitiveness?
A: Nucor is embracing automation and AI to enhance safety, flexibility, and cost efficiencies. Examples include robotic weld cells in the Nucor racking group and AI optimization at their Memphis SBQ mill, reducing man-hours by about 80%. Automation allows Nucor to navigate demand fluctuations and leverage technology across its large scale for greater gains.

Automotive and Electrical Steels Expansion
Q: What are the plans for automotive grades and electrical steels?
A: Nucor supplies 1.5 to 1.6 million tons annually to the automotive sector and aims to double that volume in the next several years, focusing on higher-value products as West Virginia comes online. They've evaluated electrical steels and find end uses potentially attractive, indicating developments may be forthcoming.

Infrastructure Demand Outlook
Q: How much steel demand are you seeing from IIJA?
A: Nucor is currently seeing the most impact from the CHIPS Act, with steel being processed and put through. The infrastructure bill is still in early stages, with a maturation process that could take two years before impacting order books.

Policy Risks from Upcoming Elections
Q: What risks do you see from potential policy changes?
A: While it's hard to predict changes from a new administration, Nucor has succeeded under both Democratic and Republican leadership. Their long-term strategy and diversified product range position them well to navigate any policy shifts.

Brandenburg Mill Ramp-Up
Q: Can Brandenburg ramp up to full capacity soon?
A: Nucor anticipates the Brandenburg mill will achieve full run-rate capabilities in 2024, with no technical barriers preventing ramp-up. They'll be mindful of market conditions but are confident in their ability to meet capacity when required.

Electricity Rates and Manufacturing Impact
Q: Are higher electricity rates a concern for manufacturing?
A: Yes, higher electricity rates could hinder reshoring and disadvantage U.S. manufacturing. Nucor emphasizes the need for energy independence and supports embracing nuclear energy to meet growing power demands.