By Micah Maidenberg

Nucor Corp. said it expects performance in its raw materials business to decline in the third quarter compared with the second quarter, due to weaker profit margins for a metal product called direct-reduced iron.

Profitability in the company's steel-products business is expected to improve during the third quarter versus the second quarter, the company also said. The nonresidential construction market remains strong, according to Nucor, which should support the steel-product business.

However, Nucor also warned it believes its steel mills business's performance in the third quarter will be weaker than the last period due to lower prices for flat-rolled steel and plate steel.

"Prices for several key product lines have only recently reversed the downward trajectory that prevailed during the first half of the year due to weather conditions and service center destocking," Nucor said about the mills business. "We expect service center customers will resume more normal market demand-driven buying patterns during the third quarter of 2019."

Write to Micah Maidenberg at micah.maidenberg@wsj.com

(END) Dow Jones Newswires

July 18, 2019 08:56 ET (12:56 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.
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