We are highlighting Nucor, a US-based green steelmaker, as a compelling example in the current investment landscape.
The fundamentals are strong: the company exhibits good free cash flow and a solid return on invested capital (ROIC).
But the critical catalyst right now is the significant wave of infrastructure investment that is underway. A large portion of this infrastructure spending will directly benefit steel producers.
Why Green Steel?
Regulations Matter: Despite changes at the federal level, most environmental regulations and incentives relevant to construction, industrial farming, and manufacturing are governed at the state level.
Favorable Conditions: These state-level conditions remain the same or have even become more favorable for green steel.
Given who is best placed in the steel sector amidst current environmental regulations, we are recommending green steel.
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