Showing posts with label US Steel. Show all posts
Showing posts with label US Steel. Show all posts
Monday, September 24, 2012
Chevron (CVX), (FSM), (AKS), (BTU), (TLM) (WLT) (DRQ) Ratings Changes
Ratings on shares of Chevron (CVX), Dril-Quip (DRQ), AK Steel Holding Co. (AKS), Peabody Energy Corp. (BTU), Fortuna Silver Mines (FSM), Talisman Energy (TLM), Walter Energy (WLT) and U.S. Steel (X) were adjusted by analysts.
Howard Weil upgraded shares of Chevron (CVX) from a "Market Perform" rating to an "Outperform" rating. They have a price target of $135.00 on the company.
ISI Group upgraded Dril-Quip (DRQ) from a "Hold" rating to a "Buy" rating.
Citigroup (C) downgraded AK Steel Holding Co. (AKS) from a "Neutral" rating to a "Sell" rating. They lowered their price from $5.50 to $3.50 on the company.
Bank of America (BAC) downgraded Peabody Energy Corp. (BTU) from a "Buy" rating to an "Underperform" rating. They lowered their price target from $32.00 to $22.00 on the company.
Dundee Securities downgraded Fortuna Silver Mines (FSM) from a "Buy" rating to a "Neutral" rating.
Credit Suisse (CS) downgraded Talisman Energy (TLM) from an "Outperform" rating to a "Neutral"rating.
Bank of America Walter Energy (WLT) Buy Neutral $45.00 $37.00
Citigroup U.S. Steel (X) Buy Neutral $30.00 $23.00
Monday, July 23, 2012
Acorn (ACFN) (ALJ) (CHKM) (EQM) (HES) (HFC) (MPC) (TSRO) (VLO) (WNR) (X) Get New Coverage
Acorn Energy Inc (ACFN), Alon USA Energy, Inc. (ALJ), Chesapeake Midstream Partners LP (CHKM), EQT Midstream Partners LP (EQM), Hess (HES), HollyFrontier (HFC), Marathon Petroleum (MPC), ESARO Inc (TSRO), Valero Energy Co. (VLO), Western Refining, Inc. (WNR) and U.S. Steel (X) get new analyst coverage.
Barrington Research initiated coverage on Acorn Energy (ACFN). They placed an "Outperform" rating and price target of $11.30 on the company.
Tudor Pickering initiated coverage on Alon USA Energy, Inc. (ALJ). They placed an "Accumulate" rating on the company.
Barclays Capital initiated coverage on Chesapeake Midstream Partners LP (CHKM). They placed an "Overweight" rating and a price target of $33.00 on the company.
Bank of America initiated coverage on EQT Midstream Partners LP (EQM). They placed a "Buy" rating on the company
Standpoint Research initiated coverage on Hess (HES). They placed a "Buy" rating and a price target of $60.00 on the company.
Tudor Pickering initiated coverage on HollyFrontier (HFC). They placed an "Accumulate" rating on the company.
Tudor Pickering initiated coverage on Marathon Petroleum (MPC). They placed a "Buy" rating on the company
Citigroup initiated coverage on TESARO (TSRO). They placed a "Buy" rating on the company
Tudor Pickering initiated coverage on Valero Energy Co. (VLO). They placed a "Buy" rating on the company
Tudor Pickering initiated coverage on Western Refining, Inc. (WNR). They placed an "Accumulate" rating on the company.
Imperial Capital initiated coverage on U.S. Steel (X) . They placed a "Outperform" rating and a price target of $26.50 on the company.
Barrington Research initiated coverage on Acorn Energy (ACFN). They placed an "Outperform" rating and price target of $11.30 on the company.
Tudor Pickering initiated coverage on Alon USA Energy, Inc. (ALJ). They placed an "Accumulate" rating on the company.
Barclays Capital initiated coverage on Chesapeake Midstream Partners LP (CHKM). They placed an "Overweight" rating and a price target of $33.00 on the company.
Bank of America initiated coverage on EQT Midstream Partners LP (EQM). They placed a "Buy" rating on the company
Standpoint Research initiated coverage on Hess (HES). They placed a "Buy" rating and a price target of $60.00 on the company.
Tudor Pickering initiated coverage on HollyFrontier (HFC). They placed an "Accumulate" rating on the company.
Tudor Pickering initiated coverage on Marathon Petroleum (MPC). They placed a "Buy" rating on the company
Citigroup initiated coverage on TESARO (TSRO). They placed a "Buy" rating on the company
Tudor Pickering initiated coverage on Valero Energy Co. (VLO). They placed a "Buy" rating on the company
Tudor Pickering initiated coverage on Western Refining, Inc. (WNR). They placed an "Accumulate" rating on the company.
Imperial Capital initiated coverage on U.S. Steel (X) . They placed a "Outperform" rating and a price target of $26.50 on the company.
Wednesday, April 25, 2012
U.S. Steel (X) (CENX) (LDK) (POT) (STO) (CXO) (CNI) (FSLR) Ratings, Price Targets
U.S. Steel (X), Century Aluminum Company (CENX), LDK Solar (LDK), Potash (POT), Statoil (STO), Concho Resources Inc. (CXO), Canadian National Railway (CNI) and First Solar, Inc. (FSLR) had ratings and price targets on them adjusted by analysts.
Macquarie upgraded U.S. Steel (X) from an "Underperform" rating to a "Neutral" rating.
Bank of America upgraded Century Aluminum Company (CENX) from an "Underperform" rating to a "Neutral" rating.
Auriga upgraded LDK Solar (LDK) from a "Sell" rating to a "Hold" rating.
Atlantic Equities downgraded Potash (POT) from an "Overweight" rating to a "Neutral" rating.
BNP Paribas upgraded Statoil (STO) from an "Underperform" rating to a "Outperform" rating.
Societe Generale initiated coverage on Concho Resources Inc. (CXO). They placed a "Buy" rating on the company.
Raymond James upgraded Canadian National Railway (CNI) from a "Market Perform" rating to a "Outperform" rating.
Maxim Group downgraded First Solar, Inc. (FSLR) from a "Hold" rating to a "Sell" rating.
Macquarie upgraded U.S. Steel (X) from an "Underperform" rating to a "Neutral" rating.
Bank of America upgraded Century Aluminum Company (CENX) from an "Underperform" rating to a "Neutral" rating.
Auriga upgraded LDK Solar (LDK) from a "Sell" rating to a "Hold" rating.
Atlantic Equities downgraded Potash (POT) from an "Overweight" rating to a "Neutral" rating.
BNP Paribas upgraded Statoil (STO) from an "Underperform" rating to a "Outperform" rating.
Societe Generale initiated coverage on Concho Resources Inc. (CXO). They placed a "Buy" rating on the company.
Raymond James upgraded Canadian National Railway (CNI) from a "Market Perform" rating to a "Outperform" rating.
Maxim Group downgraded First Solar, Inc. (FSLR) from a "Hold" rating to a "Sell" rating.
Wednesday, February 22, 2012
Statoil (STO) (STO) (HEP) (X) (KRO) (MDT) (BLK) (CMA) (DAKT) Ratings, Price Targets
Statoil (STO), Statoil (STO), Holly Energy Partners, L.P. (HEP), U.S. Steel (X), Kronos Worldwide (KRO), Medtronic, Inc. (MDT), BlackRock, Inc. (BLK), Comerica (CMA) and Daktronics, Inc. (DAKT) had ratings and price targets on them adjusted by analysts.
Statoil (STO) was downgraded by HSBC (HBC) from an "Overweight" rating to a "Neutral" rating.
Holly Energy Partners, L.P. (HEP) was downgraded by UBS AG (UBS) from a "Buy" rating to a "Neutral" rating.
U.S. Steel (X) was downgraded by Longbow Research from a "Buy" rating to a "Neutral" rating.
Kronos Worldwide (KRO) was downgraded by Deutsche Bank from a "Buy" rating to a "Hold" rating.
Medtronic, Inc. (MDT) was downgraded by Deutsche Bank from a "Buy" rating to a "Hold" rating.
BlackRock, Inc. (BLK) was downgraded by Goldman Sachs from a "Buy" rating to a "Neutral" rating.
Comerica (CMA) was downgraded by Stifel Nicolaus from a "Hold" rating to a "Sell" rating.
Daktronics, Inc. (DAKT) was downgraded by Craig Hallum from a "Buy" rating to a "Hold" rating.
Statoil (STO) was downgraded by HSBC (HBC) from an "Overweight" rating to a "Neutral" rating.
Holly Energy Partners, L.P. (HEP) was downgraded by UBS AG (UBS) from a "Buy" rating to a "Neutral" rating.
U.S. Steel (X) was downgraded by Longbow Research from a "Buy" rating to a "Neutral" rating.
Kronos Worldwide (KRO) was downgraded by Deutsche Bank from a "Buy" rating to a "Hold" rating.
Medtronic, Inc. (MDT) was downgraded by Deutsche Bank from a "Buy" rating to a "Hold" rating.
BlackRock, Inc. (BLK) was downgraded by Goldman Sachs from a "Buy" rating to a "Neutral" rating.
Comerica (CMA) was downgraded by Stifel Nicolaus from a "Hold" rating to a "Sell" rating.
Daktronics, Inc. (DAKT) was downgraded by Craig Hallum from a "Buy" rating to a "Hold" rating.
Thursday, January 12, 2012
Hecla (HL) (KWK) (X) (GG) (CMC) (TSCO) Ratings, Price Targets
Hecla Mining (NYSE: HL), Quicksilver Resources Inc (NYSE: KWK), U.S. Steel (NYSE: X), Goldcorp Inc. (NYSE: GG), Commercial Metals (NYSE: CMC) and Tractor Supply Co. (NASDAQ: TSCO) ratings and price targets.
Quicksilver Resources Inc. (KWK) was downgraded by Tudor Pickering from an “Accumulate” rating to a “Hold” rating.
Hecla Mining (HL) had its “Market Perform” rating reiterated by BMO Capital Markets. They have a price target of $6.00 on the company.
U.S. Steel (X) had its “Sell” rating reiterated by Goldman Sachs (NYSE:GS).
Goldcorp Inc. (GG) had its price target raised by Deutsche Bank (NYSE:DB) to $58.00. They have a “Buy” rating on the company.
Bank of America (NYSE:BAC) initiated coverage on Commercial Metals (CMC). They placed an “Underperform” rating on the company.
Tractor Supply Co. (TSCO) had its price target raised by Bank of America to $85.00.
Quicksilver Resources Inc. (KWK) was downgraded by Tudor Pickering from an “Accumulate” rating to a “Hold” rating.
Hecla Mining (HL) had its “Market Perform” rating reiterated by BMO Capital Markets. They have a price target of $6.00 on the company.
U.S. Steel (X) had its “Sell” rating reiterated by Goldman Sachs (NYSE:GS).
Goldcorp Inc. (GG) had its price target raised by Deutsche Bank (NYSE:DB) to $58.00. They have a “Buy” rating on the company.
Bank of America (NYSE:BAC) initiated coverage on Commercial Metals (CMC). They placed an “Underperform” rating on the company.
Tractor Supply Co. (TSCO) had its price target raised by Bank of America to $85.00.
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
ArcelorMittal (NYSE:MT), Carpenter Technology (NYSE:CRS), US Steel (NYSE:X) Soar on Collasping US Dollar, QE2
ArcelorMittal (NYSE:MT), Carpenter Technology (NYSE:CRS), US Steel (NYSE:X) 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 rising included oil prices, gold, silver and aluminum. Gold prices reached record levels again, straining toward the $1,400 an ounce level. Silver broke 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 and the battle by some against the Chinese renminbi, which they'll have to attempt to protect themselves against.
ArcelorMittal closed at $47.33 Thursday, rising $1.66, or 3.63 percent. Carpenter Technology surged to close at $35.51, gaining $0.96, or 2.78 percent. US Steel was up to $47.33 at the end of the trading session, gaining $1.66, or 3.63 percent.
Commodity prices rising included oil prices, gold, silver and aluminum. Gold prices reached record levels again, straining toward the $1,400 an ounce level. Silver broke 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 and the battle by some against the Chinese renminbi, which they'll have to attempt to protect themselves against.
ArcelorMittal closed at $47.33 Thursday, rising $1.66, or 3.63 percent. Carpenter Technology surged to close at $35.51, gaining $0.96, or 2.78 percent. US Steel was up to $47.33 at the end of the trading session, gaining $1.66, or 3.63 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, October 27, 2010
US Steel (NYSE:X), AK Steel (NYSE:AKS), ArcelorMittal (NYSE: MT) Post Disappointing Earnings
The steel industry remains under tremendous pressure, as US Steel (NYSE:X), AK Steel (NYSE:AKS), ArcelorMittal (NYSE: MT) all reported poor results for their most recent quarter, with US Steel and AK Steel both posting losses.
Weak economies around the world are the major contributors to the terrible performance of the steel industry, as even countries with growth prospects like China are cutting back in areas to protect their economies from further erosion, especially the construction sector in China.
The consequence of China cutting back on domestic steel consumption is companies there will attempt to make up for it by exporting steel to other nations, which will continue to put downward pressure on prices, margins and earnings.
Every important metric for the industry is under pressure, as demand has fallen, sales dropped and costs risen. Many steel companies don't see this changing anytime soon.
As the global economy goes so will go the steel industry, and that doesn't bode well in an economic climate of caution and little or no growth.
US Steel lost $0.35 a share on revenue of $4.50 billion. Last year in the same quarter US Steel lost $0.17 a share. They haven't been profitable since the latter part of 2008.
ArcelorMittal's earnings dropped by 21 percent in the second quarter, but were still able to increase profits by 48 percent over the same time last year. Most of that is attributed to China demand for steel falling.
AK Steel also posted a loss for the quarter, losing $59.2 million, based mostly on the increase in iron ore prices.
Weak economies around the world are the major contributors to the terrible performance of the steel industry, as even countries with growth prospects like China are cutting back in areas to protect their economies from further erosion, especially the construction sector in China.
The consequence of China cutting back on domestic steel consumption is companies there will attempt to make up for it by exporting steel to other nations, which will continue to put downward pressure on prices, margins and earnings.
Every important metric for the industry is under pressure, as demand has fallen, sales dropped and costs risen. Many steel companies don't see this changing anytime soon.
As the global economy goes so will go the steel industry, and that doesn't bode well in an economic climate of caution and little or no growth.
US Steel lost $0.35 a share on revenue of $4.50 billion. Last year in the same quarter US Steel lost $0.17 a share. They haven't been profitable since the latter part of 2008.
ArcelorMittal's earnings dropped by 21 percent in the second quarter, but were still able to increase profits by 48 percent over the same time last year. Most of that is attributed to China demand for steel falling.
AK Steel also posted a loss for the quarter, losing $59.2 million, based mostly on the increase in iron ore prices.
Wednesday, October 20, 2010
U.S. Steel (NYSE:X) Sued by Clairton Blast Victims
U.S. Steel Corp. (NYSE:X) had a lawsuit filed against them today by three contract workers who received injuries from an explosion at the Clairton coke works plant on July 14, 2010.
The lawsuit claims manager at the plant pressured them to continue their work even though alarms went off warnings of high levels of gas.
According to the complaint, two workers were "blanking" a 30-inch line - inserting a thin metal disk between the joints of a pipe to shut off the flow of gas - to work on a piece of equipment called a pre-heater that warms the gas. They did so under the direction of U.S. Steel supervisors, the suit claims.
"Shortly after Lentz and Firestone began carrying out U.S. Steel's plan, highly explosive coke oven gas began leaking from the pipe where the 'blank' was being inserted and gas level alarms began to sound and flash in the area. Rather than evacuating employees or stopping the job, U.S. Steel management employees intentionally ignored the danger of explosion and simply turned off the alarms and signaled for the men to keep working."
Not long afterwards, according to the lawsuit, the explosion occurred.
Interestingly, employees for U.S. Steel have filed a lawsuit against Power Piping, the contractor which the injured workers worked for, saying the injured workers created unsafe work conditions during the blanking process.
The lawsuit claims manager at the plant pressured them to continue their work even though alarms went off warnings of high levels of gas.
According to the complaint, two workers were "blanking" a 30-inch line - inserting a thin metal disk between the joints of a pipe to shut off the flow of gas - to work on a piece of equipment called a pre-heater that warms the gas. They did so under the direction of U.S. Steel supervisors, the suit claims.
"Shortly after Lentz and Firestone began carrying out U.S. Steel's plan, highly explosive coke oven gas began leaking from the pipe where the 'blank' was being inserted and gas level alarms began to sound and flash in the area. Rather than evacuating employees or stopping the job, U.S. Steel management employees intentionally ignored the danger of explosion and simply turned off the alarms and signaled for the men to keep working."
Not long afterwards, according to the lawsuit, the explosion occurred.
Interestingly, employees for U.S. Steel have filed a lawsuit against Power Piping, the contractor which the injured workers worked for, saying the injured workers created unsafe work conditions during the blanking process.
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
US Steel (NYSE:X) Shuts Down Hamilton Works Operations in Canada
Citing decreasing demand, U.S. Steel Corp. (NYSE:X) announced it'll be shutting down its Hamilton Works facility in Canada.
Clueless Canadian politicians entered the fray, saying things like the government should “stand up for steelworkers by acting to protect their jobs.” NDP Leader Andrea Horwath said, “I’m calling on the McGuinty government to play hardball and take the lead in derailing U.S. Steel’s plan to close down in Hamilton.”
The truth is it's really nothing but a response to shrinking demand for the product produced in Hamilton.
Steel analyst Chuck Bradford noted, “Hamilton produces slabs. There are just no customers for slabs at the moment. I would say this move is 90 percent market driven and 10 percent about the negotiations.”
The socialist unions, who seemingly can't grasp markets and economic conditions, continue to battle giving up outrageous perks which the business can't support any longer. Doesn't the sovereign debt crisis in Europe and the term austerity have any meaning to them?
Unions continue to think and operate like they're living a hundred years ago, rather in the 21st century.
Negotiations referred to by Bradford are between US Steel and a little over 1000 steelworkers who refuse to give up some vacation, pension indexing, and other things they're being asked to reduce.
US Steel spokesman Trevor Harris said, “We continue to review and analyze market conditions and the impact they’ve had on customer orders. We can’t speculate on when market conditions will improve enough to necessitate restarting the facility.”
Most of those familiar with the Hamilton operations say the shutdown will last for at least six months.
Clueless Canadian politicians entered the fray, saying things like the government should “stand up for steelworkers by acting to protect their jobs.” NDP Leader Andrea Horwath said, “I’m calling on the McGuinty government to play hardball and take the lead in derailing U.S. Steel’s plan to close down in Hamilton.”
The truth is it's really nothing but a response to shrinking demand for the product produced in Hamilton.
Steel analyst Chuck Bradford noted, “Hamilton produces slabs. There are just no customers for slabs at the moment. I would say this move is 90 percent market driven and 10 percent about the negotiations.”
The socialist unions, who seemingly can't grasp markets and economic conditions, continue to battle giving up outrageous perks which the business can't support any longer. Doesn't the sovereign debt crisis in Europe and the term austerity have any meaning to them?
Unions continue to think and operate like they're living a hundred years ago, rather in the 21st century.
Negotiations referred to by Bradford are between US Steel and a little over 1000 steelworkers who refuse to give up some vacation, pension indexing, and other things they're being asked to reduce.
US Steel spokesman Trevor Harris said, “We continue to review and analyze market conditions and the impact they’ve had on customer orders. We can’t speculate on when market conditions will improve enough to necessitate restarting the facility.”
Most of those familiar with the Hamilton operations say the shutdown will last for at least six months.
Tuesday, September 28, 2010
US Steel (NYSE:X) Interested in Severstal's Wheeling Facility
With Russian steelmaker OAO Severstal looking to sell three plants based in the U.S., they have drawn interest in some of them from US Steel (NYSE:X) and Essar Steel from India.
Reportedly there are five suitors interested in the three U.S. steel plants, and Severstal has given all interested parties until October 22 to make a binding offer.
U.S. Steel has been said to be looking into the Wheeling plant located in West Virginia, and Essar Steel may make an offer for the Sparrows Point plant in Maryland.
Other companies showing interest in acquiring all three are Aurora Capital Group and Renco Group, both based in the U.S.
Reportedly there are five suitors interested in the three U.S. steel plants, and Severstal has given all interested parties until October 22 to make a binding offer.
U.S. Steel has been said to be looking into the Wheeling plant located in West Virginia, and Essar Steel may make an offer for the Sparrows Point plant in Maryland.
Other companies showing interest in acquiring all three are Aurora Capital Group and Renco Group, both based in the U.S.
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 8, 2010
Bank of America (NYSE:BAC) Recommends US Steel (NYSE:X)
The steel industry has been on a tear the last couple of days as a series of announcements has created a short-term boost to the industry, with US Steel (NYSE:X) seeming to be one of the favorites in the sector, as Bank of America (NYSE:BAC) recommended investors to buy shares in the steelmaker.
One other temporary factor which has yet to be confirmed in any way, was the rumors US Steel is a candidate for acquisition. No information was offered as to who had an interest when the rumors were circulating.
A couple other factors were ArcelorMittal's (NYSE:MT) announcement they're raising prices, China's growth rate, possible infrastructure projects domestically, and in China's rural areas as well.
The China growth aspect came from PMI numbers suggesting they're growing fast than thought in the recent past.
In the short term China has also decided to shutter its steel plants for two weeks to shrink its steel supply.
Pricing power over the next couple of months is expected to increase, making it a good play in the eyes of Bank of America.
One other temporary factor which has yet to be confirmed in any way, was the rumors US Steel is a candidate for acquisition. No information was offered as to who had an interest when the rumors were circulating.
A couple other factors were ArcelorMittal's (NYSE:MT) announcement they're raising prices, China's growth rate, possible infrastructure projects domestically, and in China's rural areas as well.
The China growth aspect came from PMI numbers suggesting they're growing fast than thought in the recent past.
In the short term China has also decided to shutter its steel plants for two weeks to shrink its steel supply.
Pricing power over the next couple of months is expected to increase, making it a good play in the eyes of Bank of America.
US Steel (NYSE:X), AK Steel, (NYSE:AKS), Cliffs (NYSE:CLF) Nucor (NYSE:NUE) Rise on Pricing, Infrastructure
US Steel (NYSE:X), AK Steel Holding Corporation (NYSE:AKS), Cliffs Natural Resources Inc (NYSE:CLF) and Nucor (NYSE:NUE) are all up today on news from Arcelor Mittal (NYSE:MT) they're going to raise prices, and the possibility of getting more business from an infrastructure initiative from the White House.
Another factor was the announced shuttering of steel plants in China for a couple of weeks in order to deal with the glut of steel in the market at this time. That could give more pricing power to the steel companies.
Finally, the PMI report from China showed they were growing at a better rate than thought, and that suggests better commodity demand, including steel.
China has hinted of moving their infrastructure projects to rural areas instead of urban areas, as the property markets in urban areas are in danger of a bubble.
The one element that has proven legs in all of this is pricing power, which most steel companies will probably engage in in response to Arcelor Mittal. The rest is highly speculative and unproven, although a possibility.
Another factor was the announced shuttering of steel plants in China for a couple of weeks in order to deal with the glut of steel in the market at this time. That could give more pricing power to the steel companies.
Finally, the PMI report from China showed they were growing at a better rate than thought, and that suggests better commodity demand, including steel.
China has hinted of moving their infrastructure projects to rural areas instead of urban areas, as the property markets in urban areas are in danger of a bubble.
The one element that has proven legs in all of this is pricing power, which most steel companies will probably engage in in response to Arcelor Mittal. The rest is highly speculative and unproven, although a possibility.
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.
Tuesday, July 27, 2010
AK Steel (NYSE:AKS) Exceeds Estimates, but Poor Guidance
Although AK Steel (NYSE:AKS) was able to turn things around some and turn a profit in the latest quarter, exceeding analysts' expectations, their guidance wasn't inspiring, causing investors to push the price of the stock down early in the trading day, and it remains down by well over 3 percent.
Earnings for the quarter were $26.7 million, or 24 cents a share, over three times the 7 cents a share analysts expected. Last year during the same quarter AK Steel lost $47 million, or 43 cents a share.
Revenue for the quarter, similar to US Steel (NYSE:X), surged by over double what it was last year, $793.6 million, to $1.6 billion.
Like their peers, there isn't much pricing power in the steel industry at this time, and the company expects prices to fall 5 percent in the quarter. That brings projections for price per ton down from $17 that was looked for to $15.
US steel also reported challenges for the next quarter on managing operational costs.
Iron ore costs are priced in to increase by about 65 percent next quarter for AK Steel and the rest of the steel industry.
Earnings for the quarter were $26.7 million, or 24 cents a share, over three times the 7 cents a share analysts expected. Last year during the same quarter AK Steel lost $47 million, or 43 cents a share.
Revenue for the quarter, similar to US Steel (NYSE:X), surged by over double what it was last year, $793.6 million, to $1.6 billion.
Like their peers, there isn't much pricing power in the steel industry at this time, and the company expects prices to fall 5 percent in the quarter. That brings projections for price per ton down from $17 that was looked for to $15.
US steel also reported challenges for the next quarter on managing operational costs.
Iron ore costs are priced in to increase by about 65 percent next quarter for AK Steel and the rest of the steel industry.
U.S. Steel (NYSE:X) Losses Confirm Slow Economy
United States Steel Corp. (NYSE:X) reported a second-quarter loss, even though they were able to double sales during the quarter over last year.
Considering the deep recession last year, that isn't an unexpected result, and doesn't say much to the performance of the company or an improved economy.
US Steel did attempt to spin the results as a "sharp turnaround," which when comparing numbers is true, but again, needs to really be compared with numbers in a healthy economy to give an accurate measurement of the their performance.
Losses for the quarter came to $25 million, or 17 cents a share, a definite improvement over the loss of $392 million last year during the same quarter, or $2.92 a share.
Even with sale doubling to $4.68 billion, it shows margins were low and the ability to raise prices minimal. The company stated the increased revenue was also hindered by operating expenses, which had almost doubled over the same quarter in 2009.
Guidance wasn't very impressive from the steel giant either, as they did say they expect to generate a profit in the third quarter, but falling orders and lower steel prices will have operating results underperform.
Considering the deep recession last year, that isn't an unexpected result, and doesn't say much to the performance of the company or an improved economy.
US Steel did attempt to spin the results as a "sharp turnaround," which when comparing numbers is true, but again, needs to really be compared with numbers in a healthy economy to give an accurate measurement of the their performance.
Losses for the quarter came to $25 million, or 17 cents a share, a definite improvement over the loss of $392 million last year during the same quarter, or $2.92 a share.
Even with sale doubling to $4.68 billion, it shows margins were low and the ability to raise prices minimal. The company stated the increased revenue was also hindered by operating expenses, which had almost doubled over the same quarter in 2009.
Guidance wasn't very impressive from the steel giant either, as they did say they expect to generate a profit in the third quarter, but falling orders and lower steel prices will have operating results underperform.
Friday, July 16, 2010
Nine Victims from U.S. Steel (NYSE:X) Explosion Remain in Hospital
After the explosion on Wednesday at the U.S. Steel (NYSE:X) Clairton Works Coke Plant, 20 percent were injured. An update from U.S. Steel Thursday said of those 20 injured, nine remain hospitalized.
In a late afternoon press release, the company said this:
“As of 3:00 p.m. this afternoon, 9 people remained hospitalized recovering from injuries that occurred during yesterday morning’s incident at the B Battery of U. S. Steel’s Clairton Plant coke making operation. U. S. Steel’s Medical Department is continuing to closely monitor the conditions of those who are still in local hospitals. Our thoughts continue to be with those who were injured yesterday as well as their family members."
The company added they investigation into the cause of the accident is ongoing, and the battery of coke ovens where the explosion happened should be operating again in about a week.
The rest of the coke batteries at the plant are still operational.
In a late afternoon press release, the company said this:
“As of 3:00 p.m. this afternoon, 9 people remained hospitalized recovering from injuries that occurred during yesterday morning’s incident at the B Battery of U. S. Steel’s Clairton Plant coke making operation. U. S. Steel’s Medical Department is continuing to closely monitor the conditions of those who are still in local hospitals. Our thoughts continue to be with those who were injured yesterday as well as their family members."
The company added they investigation into the cause of the accident is ongoing, and the battery of coke ovens where the explosion happened should be operating again in about a week.
The rest of the coke batteries at the plant are still operational.
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