Do Falling Chinese Exports Mean Good News for US Steel?
Given the steep rise in Chinese steel production and modest demand indicators, one would have expected a tsunami of Chinese steel exports. However, that hasn’t been the case.
According to the World Steel Association, China produced 128 million metric tons of steel in the first two months of 2017, 5.8% more than in the corresponding period last year.
China is the world’s largest steel producer, consumer, and exporter. Last year, we saw a steep rally in Chinese steel prices.
Currently, the benchmark iron ore contract for delivery to China is hovering at $85 per metric ton. Iron ore prices have seen upward price action in 2017.
Steelmaking is raw material–intensive in nature, and raw material pricing tends to impact steel prices. In this article, we’ll discuss how steel scrap prices are playing out in the United States.
Reviving America’s infrastructure was one of President Donald Trump’s pre-election promises. Notably, infrastructure and steel found mention in several of his pre- and post-election speeches.
The earnings of steel companies such as ArcelorMittal (MT), U.S. Steel Corporation (X), and Nucor (NUE) are sensitive to changes in steel prices.
The market’s reaction to the election results wasn’t really surprising given Trump’s stance on curbing imports and boosting US manufacturing.
One of President Donald Trump’s pre-election pitches was related to the Keystone pipeline. He supported the project while also saying that the pipeline would be made with American steel.
In this article, we’ll look at February 2017’s flat rolled steel imports and study whether there’s a divergence in the imports of these products.
Nucor (NUE) is North America’s largest rebar supplier. It also has rebar fabrication operations in its downstream business (AKS).
Steel imports are a key driver of US steel prices. Investors should closely follow monthly import figures, as they serve as the steel industry’s virtual health check.
According to the preliminary data released by the United States Census Bureau, the United States imported ~2.4 million metric tons of steel products in February 2017.
Steel stocks were among the biggest gainers in 2016 as Donald Trump’s election fueled a rally on expectations of higher demand and supportive trade policies.
China plans to further curtail its steel capacity to address rising pollution levels in that country.
U.S. Steel Corporation (X) and other steelmakers rallied handsomely after Donald Trump’s election.
Despite its cost headwinds, U.S. Steel (X) expects to post EBITDA of $1.3 billion in 2017.
Analysts polled by Thomson Reuters expect U.S. Steel to post revenues of $11.9 billion in 2017.
ArcelorMittal’s mining operations generated an operating income of $203 million in 4Q16, almost double what they generated in 3Q16.
AK Steel sources all of its iron ore and ~85% of its coal requirements from third parties.