Alcoa Inc. (AA), Randgold Resources Ltd. (GOLD), Marathon Petroleum (MPC), Phillips 66 (PSX), Reliance Steel & Aluminum (RS), Schnitzer Steel (SCHN) and Steel Dynamics, Inc. (STLD) were downgraded by analysts.
Jefferies Group (JEF) downgraded Alcoa Inc. (AA) from a "Buy" rating to a "Hold" rating. They have a price target of $11.00 on the company.
Stifel Nicolaus downgraded Randgold Resources Ltd. (GOLD) from a "Buy" rating to a "Hold" rating.
Credit Suisse downgraded Marathon Petroleum (MPC) from an "Outperform" rating to a "Neutral" rating. They have a price target of $63.00 on the company.
Credit Suisse downgraded Phillips 66 (PSX) from an "Outperform" rating to a "Neutral" rating. They have a price target of $46.00 on the company.
Jefferies Group downgraded Reliance Steel & Aluminum (RS) from a "Buy" rating to a "Hold" rating. They have a price target of $62.00 on the company.
Jefferies Group downgraded Schnitzer Steel (SCHN) from a "Buy" rating to a "Hold" rating.
Jefferies Group downgraded Steel Dynamics, Inc. (STLD) from a "Buy" rating to a "Hold" rating.
Showing posts with label Steel Dynamics. Show all posts
Showing posts with label Steel Dynamics. Show all posts
Tuesday, September 18, 2012
Friday, January 27, 2012
Nucor (NUE) (STLD) (MON) (RIO) (POT) (CLF) Ratings, Price Targets
Nucor (NYSE:NUE), Steel Dynamics (NASDAQ:STLD), Monsanto (NYSE:MON), Rio Tinto (NYSE:RIO), Potash (NYSE:POT) and Cliffs Natural Resources (NYSE:CLF) ratings and price targets.
Nucor (NUE) was downgraded by Deutsche Bank (NYSE:DB) from a "Buy" rating to a "Hold" rating.
Steel Dynamics (STLD) was downgraded by Crédit Agricole from a "Buy" rating to an "Outperform" rating.
Macquarie initiated coverage on Monsanto (MON). They have a "Neutral" rating on the company.
Barclays (NYSE:BCS) initiated coverage on Rio Tinto (RIO). They have an "Equal Weight" rating on the company.
Potash (POT) was upgraded by National Bank from an "Underperform" rating to a "Sector Perform" rating.
Cliffs Natural Resources (CLF) was downgraded from an "Outperform" rating to a "Neutral" rating.
Nucor (NUE) was downgraded by Deutsche Bank (NYSE:DB) from a "Buy" rating to a "Hold" rating.
Steel Dynamics (STLD) was downgraded by Crédit Agricole from a "Buy" rating to an "Outperform" rating.
Macquarie initiated coverage on Monsanto (MON). They have a "Neutral" rating on the company.
Barclays (NYSE:BCS) initiated coverage on Rio Tinto (RIO). They have an "Equal Weight" rating on the company.
Potash (POT) was upgraded by National Bank from an "Underperform" rating to a "Sector Perform" rating.
Cliffs Natural Resources (CLF) was downgraded from an "Outperform" rating to a "Neutral" rating.
Tuesday, May 31, 2011
Steelmakers (X) (AKS) (NUE) (STLD) Enter Summer Positive
In America Memorial Day weekends heralds the unofficial start of summer, and steelmakers ended May on an up note, as shares of US Steel (NYSE:X), AK Steel (NYSE:AKS), Nucor (NYSE:NUE) and Steel Dynamics (NASDAQ:STLD) all closed up Friday.
Apparently investors has decided to take the chance the recent boost in prices by steelmakers is sustainable, as the industry responds to price declines in prices in the North American market.
For flat-rolled steel, prices slid form a high of $800 a ton to about $780 a ton since April. Some of this is the result of supply-chain shortage that seem to have been worked through now.
The drop in prices resulted in Nucor, AK Steel and Steverstal boosting prices by close to $40 a ton.
With demand remaining weak, it's questionable by analysts whether the increase in prices will be able to hold. Industry capacity utilization at this time is only about 75 percent, a very average number.
Results in the second quarter should continue to be strong for steelmakers, but heading into the third quarter higher prices of scrap metal, coking coal and iron ore, along with an anemic so-called economic recovery, has generated concerns as to the strength of the industry.
For the next five years analysts see growth for the steel industry only at about a 5 percent rate at highers, with many thinking it'll be lower than that.
US Steel closed Friday at $45.67, gaining $0.33, or 0.73 percent. AK Steel closed at $15.29, rising $0.25, or 1.66 percent. Nucor ended at $42.09, jumping $0.20, or 0.48 percent. Steel Dynamics closed at $17.02, climbing $0.23, or 1.37 percent.
Apparently investors has decided to take the chance the recent boost in prices by steelmakers is sustainable, as the industry responds to price declines in prices in the North American market.
For flat-rolled steel, prices slid form a high of $800 a ton to about $780 a ton since April. Some of this is the result of supply-chain shortage that seem to have been worked through now.
The drop in prices resulted in Nucor, AK Steel and Steverstal boosting prices by close to $40 a ton.
With demand remaining weak, it's questionable by analysts whether the increase in prices will be able to hold. Industry capacity utilization at this time is only about 75 percent, a very average number.
Results in the second quarter should continue to be strong for steelmakers, but heading into the third quarter higher prices of scrap metal, coking coal and iron ore, along with an anemic so-called economic recovery, has generated concerns as to the strength of the industry.
For the next five years analysts see growth for the steel industry only at about a 5 percent rate at highers, with many thinking it'll be lower than that.
US Steel closed Friday at $45.67, gaining $0.33, or 0.73 percent. AK Steel closed at $15.29, rising $0.25, or 1.66 percent. Nucor ended at $42.09, jumping $0.20, or 0.48 percent. Steel Dynamics closed at $17.02, climbing $0.23, or 1.37 percent.
Friday, November 5, 2010
Metalico (AMEX:MEA), Olympic Steel (Nasdaq:ZEUS), Steel Dynamics (Nasdaq:STLD) Boosted on Fed Inflation, Collapsing US Dollar
Metalico Inc. (AMEX:MEA), Olympic Steel Inc. (Nasdaq:ZEUS), Steel Dynamics Inc. (Nasdaq:STLD) all soared with the broader commodity sector Thursday, as the fact 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 increasing included aluminum, gold, silver and oil. Gold prices soared record levels again, reaching toward the $1,400 an ounce level. Silver moved past the $26 level, and is probably going to continue moving up.
The steel industry could go through seasons of swings as currencies respond to the drop 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 be forced to take defensive measures against.
Because of market factors, and the overall economic health of the steel industry in general, it probably won't partake in the surge in commodity prices and demand as other raw materials will surely do.
Metalico Inc. closed at $4.54 Thursday, rising $0.17, or 3.39 percent. Olympic Steel Inc surged to close at $24.03, gaining $1.59, or 7.09 percent. Steel Dynamics Inc. was up to $15.73 at the end of the trading session, gaining $0.49, or 3.22 percent.
Commodity prices increasing included aluminum, gold, silver and oil. Gold prices soared record levels again, reaching toward the $1,400 an ounce level. Silver moved past the $26 level, and is probably going to continue moving up.
The steel industry could go through seasons of swings as currencies respond to the drop 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 be forced to take defensive measures against.
Because of market factors, and the overall economic health of the steel industry in general, it probably won't partake in the surge in commodity prices and demand as other raw materials will surely do.
Metalico Inc. closed at $4.54 Thursday, rising $0.17, or 3.39 percent. Olympic Steel Inc surged to close at $24.03, gaining $1.59, or 7.09 percent. Steel Dynamics Inc. was up to $15.73 at the end of the trading session, gaining $0.49, or 3.22 percent.
Schnitzer Steel (NASDAQ:SCHN), Steel Dynamics (NASDAQ:STLD), POSCO (NYSE:PKX) Soar on QE2, Collapsing US Dollar
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.
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.
Wednesday, November 3, 2010
UBS (NYSE:UBS) Places US Steel (NYSE:X) on Short Term Buy List
Saying they expect steel prices to rise, UBS (NYSE:UBS) added US Steel (NYSE:X) to their Short Term Buy list.
"We put a Short-term Buy rating on U.S. Steel on the back of our conviction that steel prices are about to rise. We think it is a beneficiary, with Buy-rated Steel Dynamics (Nasdaq:STLD), because it has captive iron ore in the U.S. and can see margins improve when price hikes stick. We forecast HRC at $650 for 2011, up from recent spot at $520-$560. We think Nucor (NYSE:NUE) may underperform peers given it has less captive raw materials."
Having its own iron ore resources generates a competitive advantage for US Steel, which should enjoy stronger margins and earnings for the quarter.
UBS maintains their "Neutral" rating on US Steel. The steel producer closed Tuesday at $44.85, gaining $1.56, or 3.60 percent. UBS increased their price target from $42 to $43.
"We put a Short-term Buy rating on U.S. Steel on the back of our conviction that steel prices are about to rise. We think it is a beneficiary, with Buy-rated Steel Dynamics (Nasdaq:STLD), because it has captive iron ore in the U.S. and can see margins improve when price hikes stick. We forecast HRC at $650 for 2011, up from recent spot at $520-$560. We think Nucor (NYSE:NUE) may underperform peers given it has less captive raw materials."
Having its own iron ore resources generates a competitive advantage for US Steel, which should enjoy stronger margins and earnings for the quarter.
UBS maintains their "Neutral" rating on US Steel. The steel producer closed Tuesday at $44.85, gaining $1.56, or 3.60 percent. UBS increased their price target from $42 to $43.
Wednesday, September 22, 2010
US Steel (NYSE:X), Steel Dynamics (Nasdaq:STLD, Nucor (NYSE:NUE) Downgraded by Longbow
The steel industry continues to be out of favor, and Longbow Research reflectd that with their downgrades of U.S. Steel (NYSE:X), Steel Dynamics (Nasdaq:STLD and Nucor (NYSE:NUE), although MF Global (NYSE:MF) did upgrade Arcelor Mittal (MT) from "Neutral" to "Buy" in the sector.
US Steel was downgraded from "Buy" to "Neutral," with a price target of $60 kept in place; Steel Dynamics was downgraded from "Buy" to "Neutral," with Longbow keeping a price target of $20 on the company; Nucor was dropped from "Neutral" to "Sell."
Steel prices are expected to remain under pressure for some time, and competition in certain segments like flat roll mill will continue to challenge a number of the steel producers.
Goldman Sachs (NYSE:GS) also downgraded several steel producers recently, including U.S. Steel and Nucor.
US Steel was downgraded from "Buy" to "Neutral," with a price target of $60 kept in place; Steel Dynamics was downgraded from "Buy" to "Neutral," with Longbow keeping a price target of $20 on the company; Nucor was dropped from "Neutral" to "Sell."
Steel prices are expected to remain under pressure for some time, and competition in certain segments like flat roll mill will continue to challenge a number of the steel producers.
Goldman Sachs (NYSE:GS) also downgraded several steel producers recently, including U.S. Steel and Nucor.
Wednesday, September 15, 2010
Nucor (NYSE:NUE), Steel Dynamics (Nasdaq:STLD) Lower Third-quarter Guidance
With Nucor (NYSE:NUE) and Steel Dynamics (Nasdaq:STLD) lowering their third-quarter guidance, Canaccord Genuity said it confirms the domestic steel scrap market, in relationship to flows and spreads, is slowing down for the quarter.
"Both Nucor and Steel Dynamics lowered their Q3 earnings guidance on Tuesday. For the record, Nucor expects Q3 earnings per share to be $0.05-$0.10, down from $0.29 in Q2/10. Steel Dynamics forecasts Q3 EPS of $0.05-$0.10, down from $0.22 in Q2/10," said Canaccord.
Neither Nucor or Steel Dynamics is rated at this time by Canaccord.
"This commentary confirms what we have been hearing about the domestic scrap market in the current quarter in terms of flows and spreads. As detailed in prior research, we recently lowered our Aug. (FQ4/10) quarter estimate for Schnitzer Steel (Nasdaq:SCHN), based on reduced expectations for average realized metal spreads. Also, we lowered our Sims Metal Management (NYSE:SMS) estimates for F2011 and F2012 due in part to mixed ferrous scrap demand trends and weaker scrap flows."
Canaccord rates Sims and Schnitzer at "Buy."
"Both Nucor and Steel Dynamics lowered their Q3 earnings guidance on Tuesday. For the record, Nucor expects Q3 earnings per share to be $0.05-$0.10, down from $0.29 in Q2/10. Steel Dynamics forecasts Q3 EPS of $0.05-$0.10, down from $0.22 in Q2/10," said Canaccord.
Neither Nucor or Steel Dynamics is rated at this time by Canaccord.
"This commentary confirms what we have been hearing about the domestic scrap market in the current quarter in terms of flows and spreads. As detailed in prior research, we recently lowered our Aug. (FQ4/10) quarter estimate for Schnitzer Steel (Nasdaq:SCHN), based on reduced expectations for average realized metal spreads. Also, we lowered our Sims Metal Management (NYSE:SMS) estimates for F2011 and F2012 due in part to mixed ferrous scrap demand trends and weaker scrap flows."
Canaccord rates Sims and Schnitzer at "Buy."
Monday, August 30, 2010
U.S. Steel (NYSE:X), AK Steel (NYSE:AKS), Nucor, (NYSE:NUE) - All Under Pressure
The steel industry is under pressure as a surplus of steel and slowing Chinese demand puts pressure on companies like U.S. Steel (NYSE:X), AK Steel (NYSE:AKS) and Nucor (NYSE:NUE).
Credit Suisse (NYSE:CS) recently said that U.S. Steel and AK Steel are particularly vulnerable to a fall in prices.
On the China part of the issue, much depends on how they continue to go forward with the cooling off of the real estate market in urban areas. At this time about growth is about 3 percent lower than before, and that definitely cuts into steel demand.
Another bit of news that has yet to be confirmed on China is they may now direct stimulus efforts to the rural areas of the country which could make up for a lot of the slowdown in urban areas. If that's the case, it could change the dynamics, although it would take time to ramp up.
On the other hand, if steel production in China start to increase again, that could offer support, although it wouldn't be anything that would push prices up dramatically, even in the best case scenario.
Even with the expected increase of steel prices in September of up to $30 a ton (probably), in the fourth quarter expectations are scrap prices will come under pressure and drop. That is based on the belief scrap steel supply will increase during that period.
The recent increase in scrap prices should also push more steel into scrap yards, which will of course bring more supply than needed, driving steel prices back down.
This could create a domino effect in other steel products and cut into margins and earnings.
Ak Steel has been cutting capacity in a low steel demand market, and U.S. Steel has a high debt load which cuts back on their flexibility and has made it extremely difficult to be profitable, as the last six quarters have shown.
On the other hand Nucor and Steel Dynamics (Nasdaq:STLD) have been able to turn a profit in slow times, and are positioned strongly to be able to at least be profitable whatever way the market turns, which should be down in the short term.
Credit Suisse (NYSE:CS) recently said that U.S. Steel and AK Steel are particularly vulnerable to a fall in prices.
On the China part of the issue, much depends on how they continue to go forward with the cooling off of the real estate market in urban areas. At this time about growth is about 3 percent lower than before, and that definitely cuts into steel demand.
Another bit of news that has yet to be confirmed on China is they may now direct stimulus efforts to the rural areas of the country which could make up for a lot of the slowdown in urban areas. If that's the case, it could change the dynamics, although it would take time to ramp up.
On the other hand, if steel production in China start to increase again, that could offer support, although it wouldn't be anything that would push prices up dramatically, even in the best case scenario.
Even with the expected increase of steel prices in September of up to $30 a ton (probably), in the fourth quarter expectations are scrap prices will come under pressure and drop. That is based on the belief scrap steel supply will increase during that period.
The recent increase in scrap prices should also push more steel into scrap yards, which will of course bring more supply than needed, driving steel prices back down.
This could create a domino effect in other steel products and cut into margins and earnings.
Ak Steel has been cutting capacity in a low steel demand market, and U.S. Steel has a high debt load which cuts back on their flexibility and has made it extremely difficult to be profitable, as the last six quarters have shown.
On the other hand Nucor and Steel Dynamics (Nasdaq:STLD) have been able to turn a profit in slow times, and are positioned strongly to be able to at least be profitable whatever way the market turns, which should be down in the short term.
Wednesday, March 24, 2010
U.S. Steel (NYSE:N), Nucor (NYSE:NUE), AK Steel (NYSE:AKS) and Steel Dynamics (NASDAQ:STLD) Rise On Improved Production
World Steel Association Report
Major steelmakers made big moves as data released Tuesday revealed demand for steel products has resulted in increased production and capacity rates at companies like U.S. Steel (NYSE:N), Nucor (NYSE:NUE), AK Steel (NYSE:AKS) and Steel Dynamics (NASDAQ:STLD).
Data from the World Steel Association showed operating rates at steel plants were their highest since September 2008, while worldwide steel production increased 24.2 percent from February 2009.
Output for crude steel surged by 51.3 percent to just under 6 million tons in February as well.
Utilization is expected to average far above 2009 levels, which were at 62.8 percent in the fourth quarter of 2009, increasing to an average between 70 percent to 75 percent, said the report.
Predictably the news sent stocks of steelmaker surging.
Major steelmakers made big moves as data released Tuesday revealed demand for steel products has resulted in increased production and capacity rates at companies like U.S. Steel (NYSE:N), Nucor (NYSE:NUE), AK Steel (NYSE:AKS) and Steel Dynamics (NASDAQ:STLD).
Data from the World Steel Association showed operating rates at steel plants were their highest since September 2008, while worldwide steel production increased 24.2 percent from February 2009.
Output for crude steel surged by 51.3 percent to just under 6 million tons in February as well.
Utilization is expected to average far above 2009 levels, which were at 62.8 percent in the fourth quarter of 2009, increasing to an average between 70 percent to 75 percent, said the report.
Predictably the news sent stocks of steelmaker surging.
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