Seeking Alpha

AK Steel slumps nearly 10% in early trade following weak guidance

  • AK Steel (AKS -9.6%) plunges in early trading after issuing disappointing Q3 guidance which included a projected 5%-6% decline in shipments.
  • Further problems were outlined at the Middletown blast furnace in Ohio, where a loss of $0.09/share is foreseen due to the previously disclosed unplanned outage.
  • Shares had surged by nearly a third since the start of the month, so they seem primed for a fall, Cowen analysts say.
  • X -3.2%, MT -2.1%, STLD -1.2%, NUE -0.2%.
  • ETF: SLX.
Comments (2)
  • marpy
    , contributor
    Comments (644) | Send Message
     
    Demand in China does not equate to Demand in America - especially for steel. It does not even mean less imports in America. When you look at the Chinese steel industry, you see an industry that has transformed itself into a modern industry with vision - Very modern plants using the latest technology. Their biggest obstacle is getting low cost raw materials and they are working very hard on that. When you look at the steel industry in North America, you see a bunch of dinosaurs running old beat up plants in survival mode. And IMO survival mode never leads to much in the way of success. JMO
    20 Sep 2013, 12:25 PM Reply Like
  • Engineer&Far
    , contributor
    Comments (103) | Send Message
     
    Nucorp Steel is our largest producer, and it is all modern mini-mills with electric furnaces using scrap iron for its raw material. They are non-union and have excellent labor relations. Other than in hydro-electric power generation, China is not normally a technology leader in anything. I do agree that Chinese demand will not yield sales in this country, as they still centrally control and support their steel industry.
    24 Sep 2013, 12:18 PM Reply Like
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