Nucor CEO sees "Clunker" program boost for steel

NEW YORK (Reuters) - Steel demand is beginning to pick up again after eight months and should benefit from the "Cash for Clunkers" auto rebate program, the chief executive of steelmaker Nucor Corp (NUE.N) said on Wednesday.

"Real demand hasn't changed a heck of a lot over the last seven or eight months, but we are starting to see the benefit of things like Cash for Clunkers where it has been stimulating increased automobile sales," Dan DiMicco said of the program to trade-in old cars to help buy new, more fuel-efficient models.

"I don't think it's quite channeled down to us yet, but I think it's about to," DiMicco told Reuters TV in an interview. "We won't see orders materialize from that for a month or two yet."

The Nucor chief stressed the difference between apparent demand, where customers were buying steel only to replenish inventory levels, and real demand -- actual consumption by businesses.

"Apparent demand can be significantly lower than real demand, which was the case over the last seven or eight months because people were selling out of inventory," DiMicco said.

As a result of the economic downturn late last year, steel demand dropped sharply, and Nucor, like most steelmakers, cut production to below half its capacity.

"We have definitely seen an uptick in apparent demand equaling real demand ... because as an industry we've gone from just below 40 percent capacity to somewhere in the mid-50s," DiMicco said.

"We may see that increase as we go forward in the quarter based upon finally apparent demand and real demand being equal."

(Reporting by Steve James; Editing by Lisa Von Ahn)