Nucor (NYSE:NUE), AK Steel Holding (NYSE:AKS), Commercial Metals Company (NYSE:CMC) all moved up with the broader commodity sector Thursday, as the announcement that the Federal Reserve was going to inflate again via its quantitative easing strategy pushed up the price of commodities in anticipation of the inevitable inflation to come.
Commodity prices going up included gold, silver, oil prices and aluminum. Gold prices reached record levels again, straining toward the $1,400 an ounce level. Silver surged past the $26 level, and seems poised to continue moving up.
The steel industry could go through a period of fluctuation as currencies respond to the fall in value of the U.S. dollar, which will affect margins because of the wide swings in currency value and the battle by some against the Chinese renminbi, which they'll have to take defensive measures against.
Because of market factors, and the overall health of the steel industry, it probably won't participate in the surge in commodity prices and demand as other raw materials will do.
Nucor closed at $39.40 Thursday, rising $0.86, or 2.23 percent. AK Steel Holding surged to close at $13.55, gaining $0.29, or 2.19 percent. Commercial Metals Company was up to $14.59 at the end of the trading session, gaining $0.54, or 3.84 percent.
Showing posts with label Commercial Metals. Show all posts
Showing posts with label Commercial Metals. Show all posts
Friday, November 5, 2010
Tuesday, November 2, 2010
Commercial Metals (NYSE:CMC) Earnings Cut Hard by UBS (NYSE:UBS)
Although UBS (NYSE:UBS) maintained their "Neutral" rating on Commercial Metals (NYSE:CMC), while looking for the fourth quarter to gradually improve, they still see some challenges, and lowered their earnings outlook and price target on the company.
UBS said, "Mgmt anticipated a breakeven Q1 vs consensus $0.17, absent LIFO, which could be a hit given CMC’s outlook for higher scrap prices into its Nov qtr. It cited seasonal weakness, continued downstream ops losses, and Croatia maintenance. We cut Q1e to $0.02 from $0.25 and 2011e to $0.65 vs $1.15 and consensus $1.30."
Commercial Metals closed level on Monday, ending at $13.88, the same as Friday's close. UBS lowered their price target on them from $16 to $15.
UBS said, "Mgmt anticipated a breakeven Q1 vs consensus $0.17, absent LIFO, which could be a hit given CMC’s outlook for higher scrap prices into its Nov qtr. It cited seasonal weakness, continued downstream ops losses, and Croatia maintenance. We cut Q1e to $0.02 from $0.25 and 2011e to $0.65 vs $1.15 and consensus $1.30."
Commercial Metals closed level on Monday, ending at $13.88, the same as Friday's close. UBS lowered their price target on them from $16 to $15.
Wednesday, October 13, 2010
POSCO (NYSE:PKX), US Steel (NYSE:X), Nucor (NYSE:NUE), Reliance (NYSE:RS) on UBS' (NYSE:UBS) Outlook for Industry
Citing soft flat-rolled volumes, UBS (NYSE:UBS) said Commercial Metals Company (NYSE:CMC) and United States Steel Corp. (NYSE:X) could miss earnings, pushing the entire sector down Tuesday.
Even more dramatic was the downwardly revised full-year profit estimate of POSCO (NYSE:PKX), which was slashed by 7 percent. Slowing demand and higher costs were the reasons given for the changes.
The one positive note was Schnitzer Steel Industries Inc. (NASDAQ:SCHN), which UBS said could generate better results in the third quarter than thought.
The Market Vectors Steel ETF (NYSE:SLX) closed at $64.88, losing $0.67, or 1.02 percent.
Reliance Steel & Aluminum closed Tuesday at $43.24, down $0.33, or 0.76 percent. Nucor Corp. (NYSE:NUE) finished the session at $39.88, losing $0.20, or 0.50 percent. AK Steel Holding Corp. (NYSE:AKS) dropped to $14.50, a loss of $0.14, or 0.96 percent.
Posco plummeted to $114.47, falling $5.03, or 4.21 percent. Schnitzer Steel Industries Inc. fell to an even $50, a slight loss of $0.03, or 0.06 percent. Commercial Metals Company was also off just a little, ending at $14.76, dropping $0.06, or 0.40 percent.
The steel industry overall is in for a rough ride as news continues to confirm demand is slowing.
Even more dramatic was the downwardly revised full-year profit estimate of POSCO (NYSE:PKX), which was slashed by 7 percent. Slowing demand and higher costs were the reasons given for the changes.
The one positive note was Schnitzer Steel Industries Inc. (NASDAQ:SCHN), which UBS said could generate better results in the third quarter than thought.
The Market Vectors Steel ETF (NYSE:SLX) closed at $64.88, losing $0.67, or 1.02 percent.
Reliance Steel & Aluminum closed Tuesday at $43.24, down $0.33, or 0.76 percent. Nucor Corp. (NYSE:NUE) finished the session at $39.88, losing $0.20, or 0.50 percent. AK Steel Holding Corp. (NYSE:AKS) dropped to $14.50, a loss of $0.14, or 0.96 percent.
Posco plummeted to $114.47, falling $5.03, or 4.21 percent. Schnitzer Steel Industries Inc. fell to an even $50, a slight loss of $0.03, or 0.06 percent. Commercial Metals Company was also off just a little, ending at $14.76, dropping $0.06, or 0.40 percent.
The steel industry overall is in for a rough ride as news continues to confirm demand is slowing.
Thursday, July 1, 2010
Industrial Metals Lead Commodities Down for Quarter
Commodities experienced their worst quarter in over a year, as industrial metals plummeted in price on an extremely weak U.S. economy, China urban property inflation concerns, and the sovereign debt crisis in Europe.
The worst of the industrial metals was zinc, which fell 25 percent for the quarter, its worst performance since the latter part of 2008. Nickel was much better, dropping 22 percent for the quarter, followed by lead, which was down 19 percent, copper declining 17 percent, and aluminum falling 15 percent.
Heading into the fourth quarter doesn't look much better for commodities, as estimates from Barclays Capital have prices dropping even more, according to a recent report, especially copper and aluminum, which are used heavily in building homes.
With the bottom falling out from the U.S. housing market after the tax break was ended, along with the Chinese battling property inflation in their urban areas, the demand for industrial commodities are under extreme pressure until those situations turn around, which they don't look likely to any time soon.
Gold will continue to be a strong performer, and silver will probably shine when measured against other industrial metals.
The worst of the industrial metals was zinc, which fell 25 percent for the quarter, its worst performance since the latter part of 2008. Nickel was much better, dropping 22 percent for the quarter, followed by lead, which was down 19 percent, copper declining 17 percent, and aluminum falling 15 percent.
Heading into the fourth quarter doesn't look much better for commodities, as estimates from Barclays Capital have prices dropping even more, according to a recent report, especially copper and aluminum, which are used heavily in building homes.
With the bottom falling out from the U.S. housing market after the tax break was ended, along with the Chinese battling property inflation in their urban areas, the demand for industrial commodities are under extreme pressure until those situations turn around, which they don't look likely to any time soon.
Gold will continue to be a strong performer, and silver will probably shine when measured against other industrial metals.
Monday, May 24, 2010
Commercial Metals (NYSE:CMC) Rebounds After Hours
Commercial Metals (NYSE:CMC) doesn't have too good of an outlook in the near term, and they've been pretty shake in their stock performance over the last year.
They did have a nice spike in the second quarter, but other than that, they've pretty much been level, spiking up and down with seemingly no direction.
Recent guidance from the company confirms they're not too optimistic going forward, as in the third quarter they're expecting a loss of 10 cents a share, or at best, breaking even. And from the recent history of the company, that seems to be in line with the reality.
But even that weak guidance is more optimistic than analysts, who are looking for a loss of 19 cents a share for the third quarter.
Commercial Metals ended the session at $14.16, down 24 cents, or 1.67 percent. They have rebounded slightly in after hours trading, gaining 9 cents, or 0.66 percent.
Their third-quarter report is scheduled for June 22.
They did have a nice spike in the second quarter, but other than that, they've pretty much been level, spiking up and down with seemingly no direction.
Recent guidance from the company confirms they're not too optimistic going forward, as in the third quarter they're expecting a loss of 10 cents a share, or at best, breaking even. And from the recent history of the company, that seems to be in line with the reality.
But even that weak guidance is more optimistic than analysts, who are looking for a loss of 19 cents a share for the third quarter.
Commercial Metals ended the session at $14.16, down 24 cents, or 1.67 percent. They have rebounded slightly in after hours trading, gaining 9 cents, or 0.66 percent.
Their third-quarter report is scheduled for June 22.
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