Steel and miners-related exchange traded funds led the charge on Friday after Nucor Corporation (NYSE: NUE) hit a 52-week high and announced intentions to expand its operations.
On Friday, the VanEck Vectors Steel ETF (NYSEArca: SLX), the lone steel sector-specific ETF, increased 3.0% and the SPDR Metals & Mining ETF (NYSEArca: XME), which is designed to track the broad metals and mining segment, including a significant tilt toward steel, gained 4.0%. Additionally, the Emles Made in America ETF (AMER), which follows U.S. manufacturing companies that generate substantial revenue in the United States, rose 2.2%.
Meanwhile, Nucor Corporation shares advanced 6.5% on Friday. NUE makes up 5.2% of SLX’s underlying portfolio, 5.1% of AMER, and 4.1% of XME.
Nucor strengthened after announcing a decision to build on its existing location, which would allow the company to use investments it made to expand the capacity of the Nucor Steel Gallatin sheet mill in Kentucky while also adding a galvanizing line.
“With our recent investments to expand capacity at Nucor Steel Gallatin and add a galvanizing line, our Gallatin campus is an ideal location to build our new tube mill,” Leon Topalian, President and Chief Executive Officer of Nucor Corporation, said in a press release. “The new tube mill will allow us to better serve our customers in the construction, infrastructure and renewable energy markets.”
The new tube mill will be able to produce 250,000 tons of hollow structural section steel tubing, mechanical steel tubing, and galvanized solar torque tubes. The project will also enable Nucor to capitalize on the expanding solar markets in the U.S. and the largest consuming regions for HSS steel tubing.
“We have found Kentucky to be a great state to grow our business. We would like to thank Governor Beshear, officials with the Kentucky Cabinet for Economic Development, and local officials in Gallatin County for their support of this project and our other investments in the state,” Rex Query, Executive Vice President of Sheet and Tubular Products for Nucor Corporation, said in the same press release.
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