Jim Cramer - Mad Money
Nucor Corp.
NUE-N
BUY ON WEAKNESS
Jun 02, 2025
Jumped today by 10% after Trump announced 50% tariffs on steel; this will let US steelmakers raise prices. NUE peaked at $180 in April 2024, then has slid below $120, but is now mounting a comeback, driven by tariffs. BMO upgraded it today. But he wonders if higher tariffs will help the US steelmakers immediately, and tariffs alone aren't a reason to buy the stock. Rather, he'd buy on weakness. Look what happened during the 2018 tariffs--NUE shares actually fell, though popped occasionally. He'd like to see signals that the overall economy is thriving and that there is demand for steel.
Steel tariffs that the U.S. has placed on China are good for Cleveland Cliffs but great for Nucor. Also, Nucor benefit from being a low-costs producer.
With so few steel companies, Nucor and Cleveland Cliffs enjoy scarcity value with enough business to keep pricing up, though Nucor has a much better balance sheet. It reports Monday.
China, through trans-shipments, is dumping steel through Mexico to pressure steel prices, therefore hurting Nucor. If and when Trump stops this, then NUE shares will rocket.
Jumped today by 10% after Trump announced 50% tariffs on steel; this will let US steelmakers raise prices. NUE peaked at $180 in April 2024, then has slid below $120, but is now mounting a comeback, driven by tariffs. BMO upgraded it today. But he wonders if higher tariffs will help the US steelmakers immediately, and tariffs alone aren't a reason to buy the stock. Rather, he'd buy on weakness. Look what happened during the 2018 tariffs--NUE shares actually fell, though popped occasionally. He'd like to see signals that the overall economy is thriving and that there is demand for steel.