Schnitzer Steel Industries (NASDAQ:SCHN), Steel Dynamics (NASDAQ:STLD),
POSCO (NYSE:PKX) 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 oil prices, gold, silver 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 uncertainty as currencies respond to the fall in value of the U.S. dollar, which will affect margins because of the fluctuations in currency value and the battle by some against the Chinese renminbi, which they'll have to attempt to take defensive measures against.
Schnitzer Steel Industries closed at $53.15 Thursday, rising $1.02, or 1.96 percent. Steel Dynamics surged to close at $15.73, gaining $0.49, or 3.22 percent. POSCO was up to $108.38 at the end of the trading session, gaining $3.72, or 3.55 percent.
Showing posts with label Posco. Show all posts
Showing posts with label Posco. Show all posts
Friday, November 5, 2010
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.
Monday, October 4, 2010
POSCO (NYSE:PKX) Selling $700 Million of Global Bonds
South Korean steel giant POSCO (NYSE:PKX) announced it'll be selling close to $700 million in global bonds in October, according to company President Choi Jong Taehired.
POSCO has a rating of A at Standard & Poor’s and A- at Fitch Ratings, and A2 at Moody’s Investors Service (NYSE:MCO).
Similar to the region is resides in and ongoing geopolitical concerns, POSCO has had a rocky ride over the last year, moving up and down in wide swings, although it seems to have recovered nicely from May lows, and has been consistently moving upward in share price.
On October 1 of 2009, they stood at $100 a share even.
Friday they closed at $116.63, gaining $2.65, or 2.32 percent. They have a market cap of just under $36 billion.
POSCO has a rating of A at Standard & Poor’s and A- at Fitch Ratings, and A2 at Moody’s Investors Service (NYSE:MCO).
Similar to the region is resides in and ongoing geopolitical concerns, POSCO has had a rocky ride over the last year, moving up and down in wide swings, although it seems to have recovered nicely from May lows, and has been consistently moving upward in share price.
On October 1 of 2009, they stood at $100 a share even.
Friday they closed at $116.63, gaining $2.65, or 2.32 percent. They have a market cap of just under $36 billion.
Saturday, May 22, 2010
Arcelor Mittal (NYSE:MT) India Joint Venture Talks
Arcelor Mittal (NYSE:MT) is reportedly in talks with the state-run Steel Authority of India and Tata Steel to enter into a joint venture.
The Steel Authority of India is also in negotiations with Posco, the largest steel producer in Korea concerning a joint venture as well.
Much of this is probably coming from the high demand for steel, which while slowing some in China, is still poised for significant demand for the year, and into the distant future.
China has a strong and growing steel industry, and this would help India compete better if they could land some joint ventures from strong foreign companies like Arcelor Mittal or Posco.
The Steel Authority of India is also in negotiations with Posco, the largest steel producer in Korea concerning a joint venture as well.
Much of this is probably coming from the high demand for steel, which while slowing some in China, is still poised for significant demand for the year, and into the distant future.
China has a strong and growing steel industry, and this would help India compete better if they could land some joint ventures from strong foreign companies like Arcelor Mittal or Posco.
Monday, January 25, 2010
Buffett, Inflation and Posco (NYSE:PKX)
Asian Steel Maker Posco (NYSE:PKX)
Knowing historically how Warren Buffett has resisted investing much in the commodity sector, it's telling that he has invested a significant amount in Posco (NYSE:PKX), the most profitable steel maker in Asia.
Posco has been an extremely successful company over the last decade, enjoying an average profit of 19.7 percent during that period of time.
The stake Buffett owns in Posco via his Berkshire Hathaway (NYSE:BRK-A) isn't a small one, as he acquired 3.95 million shares as of last February 28 for $768 million, and they've now increased in value in that short time to $2 billion.
With Buffett also buying into energy companies recently, you do have to ask the question of what it is he is doing, and all indicators seem to say he's protecting against inflation, which he knows is coming, and is already here really.
Of course Buffett won't mind the inevitable rise in prices these large commodity companies will enjoy, as his stakes in ConocoPhillips (NYSE:COP) and Exxon Mobil (NYSE:XOM) show.
In reality, the Burlington Northern (NYSE:BNI) acquisition by Buffett could easily be considered a commodity move, at least in part, as much of the freight moved by the railroad is definitely raw materials and livestock.
Concerning the ongoing relationship between Posco and Warren Buffett, Buffett somewhat contradicted the assertion by Posco executives he is looking to continue investing in the company. That caused shares in Posco to decline after Buffett rumors persisted until he addressed them recently.
Buffett maintains he would buy more shares if the price goes down, and he has no plans to sell any shares.
Asian Steel Maker Posco (NYSE:PKX)
Knowing historically how Warren Buffett has resisted investing much in the commodity sector, it's telling that he has invested a significant amount in Posco (NYSE:PKX), the most profitable steel maker in Asia.
Posco has been an extremely successful company over the last decade, enjoying an average profit of 19.7 percent during that period of time.
The stake Buffett owns in Posco via his Berkshire Hathaway (NYSE:BRK-A) isn't a small one, as he acquired 3.95 million shares as of last February 28 for $768 million, and they've now increased in value in that short time to $2 billion.
With Buffett also buying into energy companies recently, you do have to ask the question of what it is he is doing, and all indicators seem to say he's protecting against inflation, which he knows is coming, and is already here really.
Of course Buffett won't mind the inevitable rise in prices these large commodity companies will enjoy, as his stakes in ConocoPhillips (NYSE:COP) and Exxon Mobil (NYSE:XOM) show.
In reality, the Burlington Northern (NYSE:BNI) acquisition by Buffett could easily be considered a commodity move, at least in part, as much of the freight moved by the railroad is definitely raw materials and livestock.
Concerning the ongoing relationship between Posco and Warren Buffett, Buffett somewhat contradicted the assertion by Posco executives he is looking to continue investing in the company. That caused shares in Posco to decline after Buffett rumors persisted until he addressed them recently.
Buffett maintains he would buy more shares if the price goes down, and he has no plans to sell any shares.
Asian Steel Maker Posco (NYSE:PKX)
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