Chad Utermark Executive Vice President of

Beam and Plate Products

Nucor Corporation

March 2017

Home Insurance Building

William LeBaron Jenney

The Rise of the Skyscraper

“Steel Cage” Buildings Still Climbing

Nucor Today

Great challenges bring great opportunities for great companies.

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

Nucor: “We’re ready”

Future of NAFTA

Future of NAFTA

Future of NAFTA

• 23-Year Old Agreement

• Opportunity to fix things

• NAFTA will continue to be an important trading relationship

Sources: OECD, WorldSteel, AISI, Fitch Ratings

0

200

400

600

800

1000

1200

1400

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Estimated Steelmaking Capacity & Apparent Finished Steel Use (ASU)

U.S. CHINA U.S. ASU CHINA ASU

Mill

ion

s o

f N

et T

on

s

Section 201 Steel Tariff Ends

(Dec. 2003)

Over 500 Million Tons > Internal Use

China’s Capacity Explosion

The Overcapacity Crisis

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Global Steel Capacity

Global Steel Production

China Steel Capacity

China Steel Production

700 Million

Tons Overcapacity

400 million

500

1000

1500

2000

2500

0

China Incorporated

NAFTA Production vs. China’s Exports

0

20

40

60

80

100

120

2016

Cru

de

Stee

l Pro

du

ctio

n (

Mill

ion

s o

f M

etri

c To

ns)

NAFTA Steel Production

United States Canada Mexico

Sources: NAFTA – WorldSteel Summary 2017; China – Worldsteel China Monthly 120

2016

Fin

ish

ed S

teel

Exp

ort

s (

Mill

ion

Met

ric

Ton

s)

Chinese Steel Exports

China

110 mmt 110 mmt

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 state-supported overcapacity.

The Value of Free Markets

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

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

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

Source: US Commerce Dept., AISI

0

50

100

150

200

250

300

350

400

450

Jan-14

Feb-14

Mar-1

4

Ap

r-14

May-14

Jun

-14

Jul-1

4

Au

g-14

Sep

-14

Oct-1

4

No

v-14

De

c-14

Jan-15

Feb-15

Mar-1

5

Ap

r-15

May-15

Jun

-15

Jul-1

5

Au

g-15

Sep

-15

Oct-1

5

No

v-15

De

c-15

Jan-16

Feb-16

Mar-1

6

Ap

r-16

May-16

Jun

-16

Jul-1

6

Au

g-16

Sep

-16

Oct-1

6

No

v-16

De

c-16

U.S

. Im

po

rts (

Th

ou

san

ds o

f N

et

To

ns)

Chinese & Vietnamese Finished Steel Imports (Monthly Totals, 2014-2016)

Vietnamese imports steadily

displaced China’s in 2016!

China

Vietnam

Circumvention Investigation

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

NAFTA Finished Steel Imports

11,829,756

15,718,296

18,265,536

23,430,096

21,383,304

30,901,272 30,190,776

24,716,796

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

2009 2010 2011 2012 2013 2014 2015 2016

Met

ric

Ton

s Fi

nis

hed

Ste

el Im

po

rt (

Extr

a-N

AFT

A)

North American Steel Trade Committee, NAFTA Steel Trade Monitor

Imports from outside NAFTA are down 20%

since 2014, but still well above the 5 prior years

Chad Utermark Executive Vice President of

Beam and Plate Products

Nucor Corporation

March 2017