On March 8, 2018, President Trump announced tariffs on US steel imports under Section 232 of the Trade Expansion Act of 1962. The tariffs became effective on March 23. There have been some changes in the tariffs over the last year. Some countries have managed to get long-term exemptions from the tariffs. However, the temporary exemptions for the European Union, Canada, and Mexico were eventually withdrawn. Mexico and Canada might get an exemption with a quota.
When the tariffs were imposed, there were two schools of thought. The bears expected the impact of the tariffs to wane. The bears said that the tariffs would actually hurt US steel demand because downstream product imports would increase. The bears also saw capacity restarts in the United States as a bearish driver for US steel prices (SPY). U.S. Steel (X) has restarted two blast furnaces. Nucor (NUE) and Steel Dynamics (STLD) have also announced massive investment plans. However, AK Steel (AKS) has announced the permanent closure of its Ashland Works facility, which was curtailed in 2015.
Some analysts expected the tariffs to revive US steel companies and boost to their stock prices. Looking at the price action, the bears seem to have won the argument. However, steel companies like Nucor and Steel Dynamics actually posted record earnings last year.
The tariffs have been in place for almost a year. We’ll discuss how analysts see leading steel companies. Next, we’ll discuss Steel Dynamics’ ratings and target prices.
Nucor's mean consensus target price of $68.09 represents a potential upside of 17.8% over its closing price on March 8.
Last week, Donald Trump blacklisted Chinese telecom giant Huawei Technologies amid rising US-China trade tensions.
This year has been a great one for Snapchat parent Snap (SNAP), and its stock has nearly doubled.
Coca-Cola (KO) will offer a limited edition of its of New Coke cans beginning May 23 as part of its partnership with Netflix’s (NFLX) show Stranger Things.
Clorox stock (CLX) is down about 8% since the company posted its third quarter of fiscal 2019 earnings on May 1.
JD.com (JD) recently invested ~$55 million in purchase a ~10% stake in Jiangsu Xinning Modern Logistics, a Chinese logistics company focusing on the consumer electronics supply chain.
Today, the US stock market was on a path of recovery after starting the week on a bearish note yesterday.