Steel manufacturer Ternium (NYSE:TX) was upgraded by Goldman Sachs (NYSE:GS) from "Sell" to "Neutral."
Goldman pointed to the valuation of the stock trading at 51%/43% discounts to Usiminas/CS.
Primarily manufacturing and processing flat and long steel products, Goldman doesn't see them under the pricing pressure competitors in Brazil are under domestically.
Ternium closed Tuesday at $33.86, gaining $1.31, or 4.02 percent. Goldman has lowered their price target from $40.60 to $37.90 on them.
Showing posts with label Domestic Steel. Show all posts
Showing posts with label Domestic Steel. Show all posts
Wednesday, October 6, 2010
Monday, October 4, 2010
Schnitzer (NASDAQ:SCHN), Sims (NYSE:SMS) Look Good Long Term Says Canaccord
Canaccord commented on the overall sector Schnitzer Steel (NASDAQ:SCHN) and Sims Metal Management (NYSE:SMS) operate in, and said in the short term there isn't much to get excited about, as little is out there that would suggest the ongoing drop in ferrous scrap prices will halt any time soon.
"Based on our research, we conclude the export market remains in a temporary lull following a fairly strong month in August. Overseas demand is relatively sluggish for the most part and ferrous scrap prices are on the decline (perhaps more so than we expected earlier this week). Although a lack of near-term catalysts is likely to keep Schnitzer and Sims Metal Management (NYSE:SMS) in a trading range for now, in our view, we maintain our BUY ratings based on attractive valuations and compelling long-term growth drivers," said Canaccord.
Both companies have had their shares drop from a year ago, as had most in the steel industry.
It's all about demand and it just isn't there, and likely won't be for some time.
"Based on our research, we conclude the export market remains in a temporary lull following a fairly strong month in August. Overseas demand is relatively sluggish for the most part and ferrous scrap prices are on the decline (perhaps more so than we expected earlier this week). Although a lack of near-term catalysts is likely to keep Schnitzer and Sims Metal Management (NYSE:SMS) in a trading range for now, in our view, we maintain our BUY ratings based on attractive valuations and compelling long-term growth drivers," said Canaccord.
Both companies have had their shares drop from a year ago, as had most in the steel industry.
It's all about demand and it just isn't there, and likely won't be for some time.
Friday, March 19, 2010
Nucor (NYSE:NUE) Raising SBQ Prices
Nucor Corporation Raising Special Bar Quality Prices
Nucor Corporation (NYSE:NUE) communicated to its customers on Thursday they will be increasing the price of special bar quality (SBQ) products by $30 a ton starting with shipments leaving May 1.
Other companies have made similar announcements this week, with some products going as high as $40 a ton, such as alloy heat-treated and quench-and-tempered cold-finished bars produced by Gerdau Macsteel.
Demand has been largely the reason behind the increased prices, along with low supply. Another factor is the higher cost of raw materials to produce the various products.
Nucor Corporation (NYSE:NUE) communicated to its customers on Thursday they will be increasing the price of special bar quality (SBQ) products by $30 a ton starting with shipments leaving May 1.
Other companies have made similar announcements this week, with some products going as high as $40 a ton, such as alloy heat-treated and quench-and-tempered cold-finished bars produced by Gerdau Macsteel.
Demand has been largely the reason behind the increased prices, along with low supply. Another factor is the higher cost of raw materials to produce the various products.
Friday, December 18, 2009
Domestic Steel Industry Remains Flat
The steel industry is one of the first looked to to see if there are signs of sustainable recovery or not, and the news from that from for domestic steel isn't good.
Even though domestic steelmakers have improved their capacity utilization, it has done nothing to generate demand for steel, as there's simply little activity to spur demand for steel, and nothing will change that any time soon.
Steelmakers say not only is there not much demand for steel, but they don't expect demand to increase in the near future at all.
This does change somewhat for overseas markets where deamdn for iron ore and seaborne coking caol is increase from Asian steelmakers. Coal exporters are very excited about how this will drive demand for their products.
For 2010 it looks like coal to supply Asian steelmakers will be in high demand, with some producers saying they've already sold out of their inventory, with iron ore expected to face demand pressures as well.
Even though domestic steelmakers have improved their capacity utilization, it has done nothing to generate demand for steel, as there's simply little activity to spur demand for steel, and nothing will change that any time soon.
Steelmakers say not only is there not much demand for steel, but they don't expect demand to increase in the near future at all.
This does change somewhat for overseas markets where deamdn for iron ore and seaborne coking caol is increase from Asian steelmakers. Coal exporters are very excited about how this will drive demand for their products.
For 2010 it looks like coal to supply Asian steelmakers will be in high demand, with some producers saying they've already sold out of their inventory, with iron ore expected to face demand pressures as well.
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