{"url_path":"/sec/nue/10-q/2026/item-3","section_key":"item-3","section_title":"Item 3 Quantitative and Qualitative Disclosures About Market Risk","topic":"sec","document":{"doc_type":"10-Q","doc_date":"2026-05-13","source_url":"https://www.sec.gov/Archives/edgar/data/73309/0001193125-26-220778-index.html","accession_number":"0001193125-26-220778","cik":"0000073309","ticker":"NUE","issuer_name":"NUCOR CORP","edgar_url":"https://www.sec.gov/Archives/edgar/data/73309/0001193125-26-220778-index.html","primary_entity_key":"0000073309","primary_entity_name":"NUCOR CORP"},"word_count":584,"has_tables":true,"body_markdown":"Item 3. Quantitative and Qualitative Disclosures About Market Risk\n\nIn the ordinary course of business, Nucor is exposed to a variety of market risks. We continually monitor these risks and develop strategies to manage them.\n\nInterest Rate Risk\n\nNucor manages interest rate risk by using a combination of variable-rate and fixed-rate debt. Nucor also occasionally makes use of interest rate swaps to manage net exposure to interest rate changes. Management does not believe that Nucor’s exposure to interest rate risk has significantly changed since December 31, 2025. There were no interest rate swaps outstanding at April 4, 2026.\n\nCommodity Price Risk\n\nIn the ordinary course of business, Nucor is exposed to market risk for price fluctuations of raw materials and energy, principally scrap steel, other ferrous and nonferrous metals, alloys and natural gas. We attempt to negotiate the best prices for our raw material and energy requirements and to obtain prices for our steel products that match market price movements in response to supply and demand. In periods of strong or stable demand for our products, we are more likely to be able to effectively reduce the normal time lag in passing through higher raw material costs so that we can maintain our gross margins. When demand for our products is weaker, this becomes more challenging. Our DRI facilities in Trinidad and Louisiana provide us with flexibility in managing our raw material requirements and our input costs. DRI is particularly important for operational flexibility when demand for prime scrap increases due to increased domestic steel production.\n\nNatural gas produced by Nucor’s production operations is being sold to third parties to partially offset our exposure to changes in the price of natural gas consumed by our Louisiana DRI facility and our steel mills in the United States.\n\nNucor also periodically uses derivative financial instruments to hedge a portion of our exposure to price risk related to natural gas purchases used in the production process and to hedge a portion of our steel, scrap, aluminum and copper purchases and sales. Gains and losses from derivatives designated as hedges are deferred in accumulated other comprehensive loss, net of income taxes in the condensed consolidated balance sheets and recognized in net earnings in the same period as the underlying physical transaction. At April 4, 2026, accumulated other comprehensive loss, net of income taxes included $15 million in unrealized net-of-tax losses for the fair value of these derivative financial instruments. Changes in the fair values of derivatives not designated as hedges are recognized in net earnings each period.\n\nThe following table presents the negative effect on pre-tax earnings of a hypothetical change in the fair value of the derivative financial instruments outstanding at April 4, 2026, due to an assumed 10% and 25% change in the market price of each of the indicated commodities (in millions):\n\n \n\nCommodity Derivative\n\n \n\n10% Change\n\n \n\n \n\n25% Change\n\n \n\nNatural gas\n\n \n\n$\n\n11\n\n \n\n \n\n$\n\n28\n\n \n\nOther commodities\n\n \n\n$\n\n31\n\n \n\n \n\n$\n\n77\n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\n \n\nAny resulting changes in fair value would be recorded as adjustments to accumulated other comprehensive loss, net of income taxes or recognized in net earnings, as appropriate. These hypothetical losses would be partially offset by the benefit of lower prices paid or higher prices received for the physical commodities.\n\n \n\n23\n\n[Table of Contents](#toc_page)\n\n \n\nForeign Currency Risk\n\nNucor is exposed to foreign currency risk primarily through its operations in Canada, Europe and Mexico. We periodically use derivative contracts to mitigate the risk of currency fluctuations. Open foreign currency derivative contracts at April 4, 2026 were insignificant."}