Weekly Material Matters: Steel Hotter than the Knicks, for Now

Research evidence excerpt

Weekly Material Matters: Steel Hotter than the Knicks, for Now

Equity Research

Industry Update — June 15, 2026

Materials Specialty Metals

Building Products Steel

Construction Materials

Mining

Weekly Material Matters: Steel Hotter than the

Knicks, for Now

Our Call Timna Tanners

• Key conference themes: Building mats confident on pricing; demand exceeding EquityTimna.Tanners@wellsfargo.comAnalyst | Wells Fargo Securities,| 212-214-5437LLC

expectations; steel supply scramble.

Matt Dushkin, CPA

• We have more conviction in NUE's mid-qtr EPS vs STLD, but stay constructive both Associate Equity Analyst | Wells Fargo Securities, LLC

despite growing conviction HRC is nearing a peak. matt.dushkin@wellsfargo.com | 713-320-7199

The week ahead - NUE/STLD midqtr guides, ARTBA state budgets, USMCA talks Exhibit 1 - Wells Fargo EPS ests vs

consensus

• NUE's mid-qtr guide will be boosted by higher utilization, value-add spreads, and niche

downstream exposure, yet mgmt tends to guide conservatively. Q226E EPS ($)

Wells Fargo Consensus Variance

• STLD margins can expand on its aluminum ramp and value-add spreads, but NUE $4.91 $4.20 17% downstream can see pressure from higher sheet costs.

STLD $4.43 $4.14 7%

• ARTBA's state DoT budget details for F2027E will give insight into bldg mats funding. Source: Factset, Wells Fargo Securities, LLC ests

• US/MX were set to begin a 2nd round of USMCA negotiations Tue/Wed. Exhibit 2 - PPI aggregates vs cement vs

ready mix (y/y)

The week that was - 16th Industrial & Materials conference 16% Crushed stone PPI Cement PPI

Ready mix PPI• Key conference themes from AA, AMRZ, AZZ, CENX, CRH, EXP, KNF, MLM, NUE, RS, 11%

STLD and VMC: Aggregates mid-yr price hikes gained traction, bldg mats mgmts were