United States Steel Corp
Is There More Upside Left in CLF and U.S. Steel (X) Stock?
X or NUE: Which Is the Best U.S. Steel Stock to Buy Now?
U.S. Steel Stock (X) Could Rise More Amid Commodity Supercycle
Why the capacity utilization rate came down at Steel Dynamics
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.
How to Counter China: Steel Could Show the Way
China (FXI) exported 5.56 million metric tons of steel in December, a yearly fall of 1.9%.
Analysts Still Hate Steel Stocks despite Bumper Earnings
Overall, it has been a mixed earnings season for steel companies.
Four Risks U.S. Steel Corporation Investors Should Know Before Q4 Earnings
How US Steel Production Can Support Cleveland-Cliffs’ Volumes in 2018
According to the World Steel Association, 6.7 million tons of crude steel were produced in the US in November 2017 compared to 7.0 million tons in October 2017.
US Steel Production Disappoints and Declines 7.2%
The AISI releases the weekly steel production figures. Steel production in the US has declined 7.2% YoY in the first five months of this year.
What Should You Expect from U.S. Steel’s 1Q18 Earnings?
1Q18 earnings season is in full swing. So what should you expect for U.S. Steel?
U.S. Steel’s Tubular Segment Is a New Achilles Heel
The current year has been a dismal year for U.S. Steel’s Tubular segment, which generated a negative per ton EBITDA of $533 and $234 in 2Q15 and 3Q15, respectively.
Why Cliffs Raised Guidance for US Volumes
US iron ore (or USIO) is the main driver for Cleveland-Cliffs’s (CLF) top and bottom lines.
How Did US Financial Markets Fare in October 2015?
The S&P 500 index, tracked by the SPDR S&P 500 ETF (SPY) and the iShares Core S&P 500 ETF (IVV), rose 8.3% in October.
Why It’s Difficult to Price Assets amid Frequent Policy Changes
We’ve seen significant volatility in markets this year.
Analysts on Iron Ore: How Much More Downside?
Analysts have been expecting a downturn in iron ore. Analysts upgraded their short-to-medium-term forecasts, but they’re still not positive about long-term fundamentals.
Getting Over Survival: Why Some Steelmakers Are Chasing Growth Now
As we saw improvement in steelmakers stock prices in February, some started to look at equity issuance. ArcelorMittal raised $1 billion through asset sales.
AK Steel Could Face Challenges in Meeting Its Goals
AK Steel is working towards stable margins throughout the business cycle. AK Steel has deliberately lowered its exposure to spot markets (X) (CLF).
Why customers and investors can rely on Reliance Steel & Aluminum
With just-in-time inventory management and an array of products, Reliance Steel & Aluminum (RS) is a reliable supplier to its customers.
How Impressive Is the Fall in Last Month’s Steel Imports?
HRC (hot rolled coil), CRC (cold rolled coil), and galvanized steel imports fell month-over-month in May.
Steel Imports Reach Record Levels In October
Compared to the first ten months of last year, steel imports are up by more than 35%. This is an alarming situation.
Alcoa’s 2Q16 Earnings: What Can Investors Expect?
Alcoa (AA) is expected to release its 2Q16 earnings on July 11. The company is in the final stages of its split, which will create two new entities.
Your Key Steel Events to Follow This Week
China’s October fixed asset investment, real estate investment, and industrial production data are all expected to be released on November 14.
Key Projects Help US Steel Realize Over $500 Million In Savings
US Steel has embarked on several key projects under its Carnegie Way program to increase profitability.
Will President Trump’s Pressure Tactics Work Out?
In March 2018, President Donald Trump imposed a tariff of 25% on steel imports. What’s happened since?
Must-know: Key risks that AK Steel investors face
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.
Why Investors Are Frugal in Valuing Steel Stocks
Since investors have been frugal in valuing steel stocks, steel companies have looked at buybacks to shore up their stock prices.
Nucor Looks to Contract Resets to Further Improve Performance
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.
U.S. Steel Faces A Tough Year With Rig Counts On A Downward Spiral
Let’s first consider why investors should monitor rig counts. Well, rig counts tell you how many rigs are currently active for drilling.
Why the outlook for US Steel’s tubular goods is positive
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.
How U.S. Steel Pulled off Better-Than-Expected Earnings in 2Q16
U.S. Steel released its 2Q16 financial results on July 26, reporting a net loss of $46 million, which translates into a per-share loss of $0.32.
Inside AK Steel’s Valuation: Analyzing 2018 Drivers
U.S. Steel (X) has the lowest forward valuation multiple in our coverage of steel stocks. The stock is trading at 4.97x its 2018 consensus EBITDA.
Why Reliance Steel’s profit margins fell in the 3Q
Metals USA was a major acquisition that RS completed last year. Metals USA’s margins are a bit lower than Reliance Steel’s profit margins.
Key takeaways from Nucor’s 3Q14 cost structure
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.
Has AK Steel Stock Bottomed Out?
AK Steel (AKS) is having a terrible year. Based on June 29 closing prices, the stock has lost 23.3% so far.
Is the Party Over for US Steel Stocks?
Analysts polled by Thomson Reuters expect AK Steel to post an adjusted EBITDA of $520 million in 2019.
It’s Raining Cash for U.S. Steel amid Strong Markets
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.
Can U.S. Steel’s Asset Revitalization Plan Spark Its Stock?
U.S. Steel (X) expects its slab production capacity to increase by 1.0 million tons by 2020 from the current level of 10.0 million tons.
What Really Drove U.S. Steel’s 2Q16 Revenues
U.S. Steel shipped 3.88 million metric tons of steel in 2Q16, which represents a sequential increase of 8.2%. Its 2Q16 shipments were almost flat YoY.
Why US Steel Companies Could Benefit from Lag Pricing in 4Q16
Steel companies such as U.S. Steel (X), Nucor (NUE), and ArcelorMittal (MT) sell their products in the spot market or under contract sales.
Key Indicators US Steel Investors Should Track in 3Q17
Steel stocks have been consolidating for the last few trading sessions. But so far, they’re having a tepid year.
US Steel in Q2 2018: Guidance, Analysts’ Actions, and Trump
Despite President Trump’s tariffs on imported steel, US steel stocks—with the exception of Steel Dynamics—have sagged this year.
Why China Is Finding It Difficult to Export Its Steel Woes
China’s steel and aluminum overcapacity has earned it the ire of several countries.
Four Reasons U.S. Steel Corporation Looks Like a Decent Buy
U.S. Steel Corporation could see an incremental rise of 1.5 million tons of steel shipments next year.
ArcelorMittal’s 4Q17 Earnings versus U.S. Steel
Previously in this series, we’ve compared steel companies’ 4Q17 shipments and average selling prices (or ASPs).
Analysts Have Been Downgrading U.S. Steel Recently
U.S. Steel carries a mean consensus price target $42.43, which represents a 45.2% upside over its October 9 closing price.
New Probe Shows Fault Line in Trump’s Tariffs
After the imposition of Section 232 steel and aluminum tariffs last year, several observers warned that we could see a spike in downstream imports.
Outlook for Chinese Steel: Implications for US Steel
China is the world’s largest steel consumer, steel producer, and steel exporter. It dominates the global steel markets probably like no other country ever has.
Chinese Steel Production: Will We See Curtailments This Year?
Previously in this series, we looked at China’s steel demand indicators. It’s also important for investors to look at the supply side of the equation.
Will the Downtrend in US Steel Imports Continue in 2016?
In November 2015, the United States imported 2.1 million metric tons of steel products—a YoY decline of 36%. What’s more, in November, US steel imports fell to a four-year low.
Can Falling Scrap Prices Drive US Steel Prices Lower?
Integrated miners like U.S. Steel and ArcelorMittal use primarily iron ore, whereas minimills like Nucor and Steel Dynamics rely more on steel scrap.
What to Look for in Cliffs Natural Resources’s 1Q17 Results
In this series, we’ll see what investors could expect from Cliffs Natural Resources’s (CLF) 1Q17 results, which are scheduled to be released on April 27, 2017. CLF underperformed the other global iron ore miners in 1Q17.
Why US Steelmakers’ Party Might Not Last Long
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.
Election Over, Market Still Undecided
We know the nation is politically divided, and now the market is showing us its split personality as well.
What Could Do the Trick for US Steel Prices
Bank of America Merrill Lynch has raised its 2017 hot rolled coil steel forecast to $700 per ton. The brokerage also upgraded U.S. Steel (X) from a “neutral” to “buy.”
These Factors Could Drive Cleveland-Cliffs’ Valuation in 2018
Among the US steel and iron ore peers, Nucor (NUE) is trading at the highest forward multiple of 7.7x.
What Do Current Market Dynamics Suggest for U.S. Steel’s Guidance?
Despite its cost headwinds, U.S. Steel (X) expects to post EBITDA of $1.3 billion in 2017.
Three factors that will drive Nucor’s profits
The World Steel Association expects global steel demand to grow by only 2% in 2014.
January Steel Imports: Should We Cheer or Worry?
Steel executives have been regularly blaming the steep rise in US steel imports as the main reason for their woes. Last year, three companies presented their cases before members of Congress.
Must-know: The biggest risk US steel companies face
Strong steel demand should turn into higher revenues for U.S. steel companies. However, rising imports have impacted steel demand.
Steel Companies Tone Down Expectations after Steel Price Rout
U.S. Steel (X) lowered its 2018 EBITDA guidance due to the recent correction in spot steel prices.
Analysts Are Coming Around to Cleveland-Cliffs, Stock Upgraded
Today, J.P. Morgan (JPM) upgraded Cleveland-Cliffs (CLF) stock from “neutral” to “overweight.” Here’s why.
These Factors Could Impact CLF’s US Volumes in 3Q17 and Beyond
In 2Q17, Cleveland-Cliffs (CLF) achieved 4% growth year-over-year in US volumes to 4.3 million tons.
Solid performance of U.S. Steel’s flat-rolled segment
The increase in U.S. Steel’s profits at the flat-rolled segment was due primarily to Carnegie Way benefits. The company is expected to operate at higher utilization levels in the coming quarters. This is a positive sign for U.S. Steel (X) investors.
Are Lower Steel Imports Supporting US Steel Prices?
US steel imports As noted previously, US steel imports fell sharply last month. Hot rolled coil imports fell 5.6% YoY (year-over-year) to their lowest level since February 2017. Whereas cold rolled coil imports fell 7.7% YoY, they rose month-over-month. Imports of HDG (hot dipped galvanized) steel fell sharply in December. Nucor (NUE), AK Steel (AKS), […]
No Early Recovery in Sight for U.S. Steel’s Tubular Segment
U.S. Steel’s Tubular segment has historically been its most profitable segment. But the segment’s financial performance has deteriorated over the past few quarters.
AK Steel Hovers above 2015 Lows: Still among Steel’s Worst
AK Steel (AKS) is still marginally above its 2015 lows. But it’s still among the worst performing steel companies in 2015.
Worthington Industries Enjoys Comfortable Leverage Ratios
Lower leverage ratios give Worthington a lot of opportunities to expand its business. The company’s cash flow is also in good shape.
Iron Ore Pricing Pressures Likely to Persist
Almost all of the iron ore miners are cutting costs, which is driving the cost curve down. This will put additional pressure on prices.
Can AK Steel’s Second-Quarter Earnings Call Reassure Investors?
During AK Steel’s second-quarter earnings call, analysts could be closely watching the company’s ASP (average selling price) guidance.
US Steel Demand: 2018 Could Be a Strong Year
If the Trump administration moves forward on the proposed infrastructure investments, it could boost US steel demand.
Overview: US Steel’s performance versus its peers
Lower margins are a reflection of the efficiency of a company.
Could the Steel Imports Probe Do More Harm than Good?
The imports probe might not hurt China much. In contrast, the US could get involved in a trade dispute with friendly nations.
Why AK Steel Isn’t in Favor with Brokerages
AK Steel’s mean consensus target price of $2.92 represents a potential upside of 11.9% over its closing price on March 8.
What Could Lift U.S. Steel Corporation Stock from Its Slump?
Although global steel prices have weakened this year, steel bulls expect the probe into steel imports to provide some sort of relief for US steel plays.
Must-know: Does the slowdown in Europe impact your investments?
The GDP figures in the second quarter raised fears about the European Union’s sustainability growth. The ECB recognized the severity of the situation.
Weekly Roundup: Steel Stocks Saw Their Fortunes Reverse
Last week was mixed for steel stocks—they followed different trajectories. With gains of 6.6%, AK Steel (AKS) was the biggest gainer.
U.S. Steel or AKS: Which Is a Better Play on Spot Steel Prices?
Almost 60% of U.S. Steel’s US flat steel sales are either spot or have monthly or quarterly resets and would enjoy the benefits of higher spot steel prices.
How Analysts Are Rating Steel Dynamics ahead of Its 3Q17 Earnings
Steel Dynamics (STLD), the third largest US-based steel producer after Nucor (NUE) and U.S. Steel (X), is expected to release its 3Q17 earnings on October 18.
United States Steel: 1Q17 Was Terrible, but Could 2Q17 Be Better?
Analysts expect United States Steel to post revenues of $2.98 billion in 2Q17. It posted revenues of $2.72 billion in 1Q17 and $2.58 billion in 2Q16.
Steel Stocks Recoup Losses after MT’s Earnings Lift Sentiments
Last week started on a positive note for most steel stocks, with most seeing upward price action on Monday. But sentiments were mostly negative after that.
Should the Fall in Chinese Steel Prices Worry AK Steel?
China is the world’s largest steel producer, consumer, and exporter. Last year, we saw a steep rally in Chinese steel prices.
AK Steel’s Outlook Looks Gloomy after Earnings Miss
AK Steel (AKS) reported its third-quarter earnings on October 25 after the markets closed. The company reported revenues of $1.74 billion.
Will U.S. Steel’s Q1 Earnings Reassure Investors?
U.S. Steel Corporation (X) saw a flurry of downgrades last month. Credit Suisse downgraded the stock from “neutral” to “underperform.”
Why Don’t Analysts Think Nucor Is a ‘Sell’ after the Steel Rally?
Of the 19 analysts surveyed by Bloomberg, none rates Nucor as a “sell.” Nucor has a “buy” rating from ten analysts while nine rate the stock as a “hold.”
What to Expect from Cleveland-Cliffs’ 3Q17 Earnings
Cleveland-Cliffs (CLF) is scheduled to release its 3Q17 results before the US market opens on October 20. In this series, we’ll look ahead to CLF’s earnings and management call.
Is the Time Right to Consider Beaten Down Steel Stocks?
The 1Q17 earnings season for US-based steel companies is almost over. Steel Dynamics released its 1Q17 earnings on April 19, 2017.
Why the Department of Commerce ruling is positive for US Steel
The ruling by U.S. DOC came on July 11.
U.S. Steel Corporation Is Addressing Its Legacy Issues
U.S. Steel Corporation (X) is trying to address some of its legacy issues. Aging plants and high pension obligations have been two key challenges.
Lower Demand for Steel Products: Rig Count Hits 12-Year Low
The OCTG segment has been hit hard by lower demand and higher inventory. This would put pressure on U.S. Steel (X) and Nucor’s (NUE) tubular operations.
Cleveland-Cliffs’ Q2 2018 Earnings: What to Look Forward To
Cleveland-Cliffs (CLF) will release its second-quarter results before the market opens on July 20.
Steel Companies’ Third-Quarter Guidance: Key Takeaways
During the second-quarter earnings call, U.S. Steel Corporation raised its 2018 EBITDA guidance to $1.85 billion–$1.90 billion.
Why the Chinese slowdown concerns steel plays the most
China is the biggest steel consumer. It accounts for almost half of global steel consumption. The slowdown in Chinese steel consumption isn’t a healthy sign for global steel markets.
Cleveland-Cliffs Stock Near Its 52-Week High—Looking ahead to 4Q
Cleveland-Cliffs (CLF) stock is trading at $12.80 per share. Its year-to-date gain through October 1 is 77.0%.
Why Is Cliffs Going to Idle Iron Ore Pellet Production?
Cliffs announced that it is going to temporarily idle its iron ore pellet production at its Northshore Mining operation in Minnesota by December 1, 2015.
AK Steel: Does the Rally Have Any Steam Left?
AK Steel (AKS) has gained more than 15% from its 2018 lows. However, AK Steel is still down 17.3% YTD (year-to-date).
Cash Flows Improve for US Steel Industry in Challenging Market
Of the three forms of cash flow, operating cash flow is the most important for a company. Let’s explore the trend in various steel companies’ cash flow metrics in 2Q15.
Steel Companies’ Valuations Revert to Mean in June
Steel companies were trading above their long-term trading multiples between February and June this year. This was due to the sharp rally in this sector.
US Steel to China: Where Are the Capacity Cuts?
Earlier this year, China announced capacity cuts in order to curtail its excess steel. The same commitment has been reiterated by China several times.
U.S. Steel Might Need to Do Some Firefighting Today
U.S. Steel Corporation (X) released its 1Q18 earnings results yesterday. While the company’s earnings beat analysts’ estimates, its 2018 guidance seems to have spooked markets.
Why U.S. Steel Investors Should Brace for Higher Input Costs
U.S. Steel Corporation (X) produces steel in blast furnaces and uses coking coal and iron ore (CLF) as raw material.