Steel scrap prices have been stable over the last couple of months. This helped Steel Dynamics’ metal recycling operations post an operating profit in 2Q15.
An increase in building permits is positive for the US housing market. In May, building permits increased by an impressive 25.4% on a year-over-year basis.
The decline in China’s real estate climate index is an indicator that Chinese construction activity has slowed down. China’s real estate sector is a key driver of global steel demand.
Worthington derives almost 40% of its revenue from the automotive industry. Considering how well the sector is doing, the outlook for Worthington is good.
Worthington earnings Previously in this series, we looked at some of Worthington Industries’s (WOR) major joint ventures, or JVs. These JVs serve the automobile, energy, and steel industries. Its oil and gas equipment sales grew 84% in 2Q 2015. Worthington’s fiscal year ends on May 31. Commercial Metals Company (CMC) runs its financial year from July to August. Oil […]
A low capacity utilization rate increases competition between existing industry players. This pressures steel prices as producers try to increase sales.
AK Steel expects to reduce its working capital and sell inventory in 2015. Its pension expenses will come down significantly in 2015, another positive sign.
