Steelmakers surge on Goldman sector upgrade

• Shares of U.S. Steel (NYSE:X), AK Steel (NYSE:AKS) and Steel Dymanics (NASDAQ:STLD) surge premarket after Goldman Sachs raises its view on the steel sector to Neutral and upgrade the shares of the individual steelmakers to Buy.
• Although volatility in the cyclical steel sector will remain the norm, risks associated with oversupply are priced in and "investors should start to look beyond near-term headwinds," the firm says.
• Supply-demand fundamentals for steel are starting to look more appealing, particularly for flat steel, while the firm's "very bearish" view on input costs (iron ore) bodes well for steel producers in the long run; also, recently filed trade cases, if successful, could help.
• Reliance Steel (NYSE:RS) is cut to Neutral from Buy based on valuation.
• X +3.9%, AKS +7.1%, STLD +3%.