SOURCE: Paragon Financial Limited

Paragon Financial Limited

April 26, 2012 08:20 ET

Healthy Demand for Steel a Result of Increased Oil & Gas Drilling

The Paragon Report Provides Stock Research on Nucor Corporation and Steel Dynamics

NEW YORK, NY--(Marketwire - Apr 26, 2012) - Despite posting some disappointing numbers for the first quarter the Steel Industry remains optimistic for the rest of 2012. The recent boom in drilling in the oil and gas industry, caused by rising oil prices, as well as a rejuvenated demand for vehicles, have been contributing factors for the soaring demand for steel. "We haven't had this kind of expansion in steel since the 1980s," said Eric Burkland, the president of the Ohio Manufacturers' Association. The Paragon Report examines investing opportunities in the Steel Industry and provides equity research on Nucor Corporation (NYSE: NUE) and Steel Dynamics, Inc. (NASDAQ: STLD).

Access to full reports can be found at:

www.ParagonReport.com/NUE
www.ParagonReport.com/STLD

Auto Manufacturers in the U.S. are one of the largest consumers of steel. According to monthly sales figures and industry estimates, automobile sales are expected to total 13.8 million cars and light trucks, and could reach 15 million by 2014. Sales had previously plunged to 10.9 million in 2009 as a result of the recession. The surge in oil and gas drilling was the biggest surprise for the steel industry. New drilling procedures have made it practical to drill into the dense and deep hydrocarbon-rich shale beneath the Great Plains, the Gulf Coast, the Rocky Mountain West and the Mid-Atlantic States. Tapping into these reserves requires large amounts of steel pipe as they generally lie a mile or more beneath the surface.

"The need for specialty steel, much of it for oil and natural gas producers, is high in the United States and around the world," said Salvatore J. Miraglia Jr., the president of Timken's steel group. "We see demand in that market continuing to be healthy for quite some time."

Paragon Report releases regular market updates on the Steel Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us free at www.ParagonReport.com and get exclusive access to our numerous stock reports and industry newsletters.

Nucor Corporation recently announced consolidated net earnings of $145.1 million, or $0.46 per diluted share, for the first quarter of 2012. By comparison, Nucor reported net earnings of $159.8 million, or $0.50 per diluted share, for the first quarter of 2011 and net earnings of $137.1 million, or $0.43 per diluted share, in the fourth quarter of 2011.

Steel Dynamics, Inc. recently announced first quarter net income of $46 million, or $0.20 per diluted share, on net sales of $2.0 billion. First quarter 2012 earnings were reduced by approximately $0.03 per diluted share, representing financing costs of $14 million associated with the company's January refinancing activities, offset by associated interest cost savings of $3 million.

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