| 2017-06-19 08:21:45|
NUE, STLD… 08:21 06/19 06/19/17
Steel stocks upgraded on positive price outlook at Longbow
As noted earlier, Longbow upgraded steelmakers Nucor (NUE), Steel Dynamics (STLD), U.S. Steel (X) and AK Steel (AKS) to Buy from Hold. After speaking with contacts in the sector, analyst Chris Olin says they expect steel HRC prices to rise $50-$60 per ton, driven by "a (recent) modest uptick in downstream steel orders, inventory adjustments and a large pullback in the number of steel import offers." In the wake of his checks, Olin now sees the chances of near-term government support of the U.S. steel sector in the form of protection from imports at 70%-80%, up from 50% last month. The analyst reports that "some buyers" expect price to rise to $700-$750 per ton following the government action, up from $590-$600 currently. Nucor target $66, Steel Dynamics target $40, U.S. Steel target $30, AK Steel target $10.