Nucor 2015 Annual Report Download - page 28

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26
Net sales for 2015 decreased 22% from the prior year. The average sales price per ton decreased 13% from $830 in 2014 to $725
in 2015, while total tons shipped to outside customers decreased 11% from 25.4 million tons in 2014 to 22.7 million tons in 2015.
In the steel mills segment, production and sales tons were as follows:
(in thousands)
Year Ended December 31, 2015 2014 % Change
Steel production 19,294 21,135 -9%
Outside steel shipments 17,006 18,681 -9%
Inside steel shipments 2,854 3,286 -13%
Total steel shipments 19,860 21,967 -10%
Net sales to external customers in the steel mills segment decreased 25% due to a 17% decrease in the average sales price
per ton from $788 in 2014 to $651 in 2015 and a 9% decrease in tons sold to outside customers.
Market conditions for the steel mills segment were much more challenging in 2015 than they were in 2014. Volumes decreased in
2015 compared to 2014 for all product groups within the steel mills segment, particularly bar, structural and plate. Average sales
prices also decreased for all product groups within the steel mills segment in 2015 compared to 2014, with the largest decreases
in sheet and plate. These trends caused decreased sales for the steel mills segment in each quarter of 2015 when compared to
the respective quarter in the prior year. Negative pricing trends and low volumes are due to continued deterioration in global steel
markets amplified by global excess capacity and historically high import levels. Imports accounted for an estimated 34% of the
finished and semi-finished steel market in 2015. The collapse in oil prices that began in late 2014 and continued through 2015
significantly weakened energy markets. In addition, agricultural and heavy equipment markets were weak in 2015. The automotive
market remains strong. Demand in nonresidential construction markets decreased slightly in 2015 as compared to 2014.
dollars
5,000
10,000
15,000
20,000
25,000
thousands of tons
13
year
200
400
600
800
1,000
10 1511 12 14
TOTAL TONS SOLD TO OUTSIDE CUSTOMERS
AVERAGE SALES PRICE PER TON