US steel industry indicators
We’re in the middle of the 4Q16 earnings season. AK Steel (AKS) and Steel Dynamics (STLD) have already released their 4Q16 earnings, and U.S. Steel (X) and Nucor (NUE) are expected to release their 4Q16 earnings on January 31, while ArcelorMittal’s (MT) 4Q16 financial results are expected on February 10. (You can read U.S. Steel: Can 4Q16 Earnings Jolt Investors’ Trump Hangover? to find out the analysts’ expectations from U.S. Steel’s 4Q16 earnings.)
4Q16 earnings season
It’s been a subdued earnings season so far for steel investors (XME). Both Steel Dynamics and AK Steel saw negative price action after their respective 4Q16 earnings releases.
While Steel Dynamics missed consensus earnings estimates, AK Steel saw selling pressure on a tepid outlook, despite beating consensus earnings estimates. Prior to that, metals stocks were flying high on Donald Trump’s election win.
Given the current earnings season, investors are naturally watching company earnings reports and conference calls. But it’s important for steel investors not to lose track of key steel industry indicators.
In this series, we’ll look at recent steel industry indicators, analyze how steel is shaping up, and gather a sense of how steel companies could perform beyond the current quarter. As lower imports have been a key driver of US steel prices, steel investors need to follow monthly steel import data releases. Continue to the next part for a detailed analysis of December steel import data.