Recent turmoil in the U.S. Housing Market including the subprime credit crisis in addition to continuing trouble in the U.S. Auto Industry has led to decreased demand for steel.
Nucor relies on scrap steel for its production. Historically high scrap steel prices have persisted through 2006 and global demand for scrap steel may continue to increase which could drive prices up even further.
Continuing imports of foreign steel, especially from China , has led to further decreases in demand for domestic steel.