AK Steel Holding Corp

One of the key metrics in the steel industry is the capacity utilization rate. It represents the actual production compared to the maximum possible production.

China (FXI) exported 5.56 million metric tons of steel in December, a yearly fall of 1.9%.

Overall, it has been a mixed earnings season for steel companies.

1Q18 earnings season is in full swing. So what should you expect for U.S. Steel?

AK Steel is working towards stable margins throughout the business cycle. AK Steel has deliberately lowered its exposure to spot markets (X) (CLF).

Compared to the first ten months of last year, steel imports are up by more than 35%. This is an alarming situation.

In March 2018, President Donald Trump imposed a tariff of 25% on steel imports. What’s happened since?

The increased use of aluminum in vehicles is a threat for AK Steel (AKS). The automotive industry accounts for ~26% of steel consumption in the U.S.

AK Steel (AKS) reported adjusted EBITDA of $69.2 million in 3Q17, compared with $142 million in 2Q17 and $157 million in 3Q16.

Nucor (NUE) expects its 3Q16 performance to improve as compared to 2Q16. The key driver of Nucor’s 3Q16 performance would be the reset of contracts.

With the recent imposition of anti-dumping duties, imports of tubular goods will likely decrease, helping U.S. Steel’s revenue in the tubular segment to increase.

Due to an increase in electricity costs, Nucor’s energy cost per ton of steel in 3Q14 went up by almost $1 from the corresponding quarter last year.

AK Steel (AKS) generated free cash flow of $147.0 million in 2Q17 compared to $3.8 million in 1Q17. It generated free cash flow of $111.0 million in 2Q16.

Due to trade cases, the US steel industry has turned into a virtual island largely immune to global steel prices—at least in the short term.

During its 2Q16 call, AK Steel (AKS) pointed to a “significant rise” in CRC steel imports from Turkey, Vietnam, and Australia.

Iron ore and steel scrap are the key steelmaking raw materials. In the United States, steel prices and scrap prices tend to move in tandem.

While US steel prices rose to a high of $660 per ton in March 2017, they fell to $580 per ton in June.

Steel Dynamics has one of the most diversified end-market exposures compared to other steel companies.

While higher steel prices benefit US steel producers, they raise input costs for downstream manufacturers.

On July 31, 2017, Cliffs Natural Resources (CLF) announced a tender offer for a $575.0 million aggregate principal amount of its 5.75% guaranteed notes due in 2025.

ArcelorMittal (MT), the world’s largest steel producer, reported revenues of $19.2 billion for 1Q18, the highest since 3Q14.

In this series, we’ll see what investors could expect from Cliffs Natural Resources’ (CLF) 2Q17 earnings report. CLF stock has gained 23% in the last 15 trading days.

Steel producers manufacture steel in several shapes according to demand from end consumers.

ArcelorMittal (MT), the world’s largest steel producer, outperformed its US-based peers including U.S. Steel Corporation (X) and AK Steel (AKS) last year.

Nucor is the only North American steel producer to hold investment-grade credit ratings due to its comfortable liquidity and leverage ratios.

Steel scrap prices could follow steel prices lower. Steel mills might negotiate hard with scrap suppliers as steel prices pare some of their 2016 gains.

The United States is the world’s largest net steel importer. The country’s net steel imports totaled 21.7 million metric tons last year.

Steel prices are the major driver of steelmakers’ earnings and revenues. So it’s important for steel investors and Cleveland-Cliffs (CLF) investors to track the trend in steel prices.

Analysts’ opinions remain divided over U.S. Steel (X) after its 1Q17 earnings results.

We’re analyzing the surging steel imports in the United States. But first, investors should understand about various types of steel imports.

Metal service centers account for about one-fifth of U.S. Steel’s total revenues. This makes these centers an important customer segment for the company.

The construction sector is the largest steel user. In the residential construction sector, US housing starts rose to an 11-year high in May.

US steelmakers such as U.S. Steel Corporation (X), AK Steel (AKS), and Nucor (NUE) stand to gain from duties against imported steel products, as they help them protect their turf from foreign steelmakers.

Using aluminum, instead of steel, increases the vehicles’ manufacturing costs. With lower energy prices, analysts’ doubt that consumers will pay extra to purchase an all-aluminum body vehicle.

Preliminary data showed that US steel imports fell sharply in August after the spike in July. However, falling imports haven’t restored investor sentiments.

For a long time, US steel producers blamed Chinese steel exports for depressing prices. However, Chinese exports have fallen sharply this year.

The steel industry in China has witnessed a slowdown, largely as a result of a slowdown in the real estate industry in China.

Although US steel producers have trade protections in the form of the Section 232 tariffs, the global steel pricing environment still affects US steel prices.

The Japanese steel industry also benefited from Abenomics. Steel production picked up as a result of the policies. A weaker yen also benefited Japan.

CLF reported its fourth-quarter earnings on February 20 before the markets opened. The company generated revenues of $534 million in the quarter.

Overall, 2019 was a mixed year for US steel stocks. However, due to the rally in the fourth quarter, most stocks managed to close the year with gains.

U.S. Steel stock (X) has underperformed peers so far in 2019. Notably, it’s the only leading US steel name that’s trading with a YTD (year-to-date) loss.

In this overview article, we’ll see how analysts are rating the leading steel stocks, and we’ll also compare performance from the top five steel companies.

Yesterday, Cleveland-Cliffs (CLF) announced that it would acquire AK Steel (AKS) at a premium of 16% over both stocks’ December 2 closing prices.

The automobile industry is on of the biggest end consumers of steel. It accounts for a quarter of steel consumption in the US.

Steel is a cyclical industry and is dependent on the growth in economic activity. In this series, we’ll learn key facts related to the steel industry and how investors can play the steel industry.

Steel can be classified into several categories. Various types of steel products are based on chemical composition. Types of steel are made by altering the chemical properties of steel.

Automobile companies are one of the biggest metal product consumers. Steel and aluminum are widely used in the automobile industry. Aluminum is being used more in automobiles.

Flat steel products consist of sheets and plates rolled from slabs, which are a semifinished steel product. These products are used in a wide range of industries such as automobile, domestic appliances, shipbuilding, and construction.

Cleveland-Cliffs (CLF) and U.S. Steel (X) stocks have underperformed markets this year. However, U.S. Steel has been strong in November.