After A Lot Of Pain, Can ArcelorMittal Deliver Some Gains?
Stephen Simpson, CFA
Stephen Simpson, CFA
ArcelorMittal Down, But Not Out
Stephen Simpson, CFA
Stephen Simpson, CFA
Oct. 19, 2015, 2:27 PM
- There's plenty more pain ahead for steel stocks such as AK Steel (AKS -6.1%), U.S. Steel (X -3%), Steel Dynamics (STLD -4.7%), Nucor (NUE -2.8%) and ArcelorMittal (MT -4.3%), according to Cowen analyst Anthony Rizzuto.
- Prices for hot rolled coil likely need to reach the upper $400s/ton for integrated producers to return to profitability, and negative sentiment is at extreme levels, but Rizzuto says recent capacity closures and upcoming preliminary trade case determinations may serve as a catalyst for near-term price stabilization.
- Shares of steel stocks (SLX -3.9%) are all trading sharply lower after China's Q3 GDP showed the slowest annual rate of growth (+6.9%) since the financial crisis in 2009.
Oct. 12, 2015, 5:37 PM
Oct. 9, 2015, 9:15 AM
Oct. 9, 2015, 8:08 AM
- ArcelorMittal (NYSE:MT) +8.3% premarket after J.P. Morgan upgrades shares to Overweight from Neutral on valuation as well as expected higher steel prices in Q4 as trade cases take effect.
- JPM says MT is now its preferred steel pick, as the company stands to benefit more from U.S. trade protections.
- Despite cutting its FY 2016 earnings estimates for MT, the firm still sees cause for optimism from current levels as demand seasonally improves during October and November.
Oct. 7, 2015, 9:14 AM
Sep. 28, 2015, 9:13 AM
Sep. 25, 2015, 5:40 PM
Sep. 25, 2015, 12:59 PM
- The U.S. International Trade Commission says it finds a reasonable indication that U.S producers are harmed by imports of flat hot-rolled steel products from seven countries, advancing a process that could result in import duties.
- AK Steel (AKS -5.5%), ArcelorMittal (MT -4.7%), Nucor (NUE -0.6%), U.S. Steel (X -4.8%) and Steel Dynamics (STLD -1.4%) have complained the imported goods are being sold too cheaply or have benefited from unfair government subsidies.
- AKS, for one, issues a statement praising the ITC ruling.
Sep. 22, 2015, 9:21 AM
Sep. 22, 2015, 9:07 AM
- Mining shares are leading a big slide in European equities as metals prices tumble on fears that an economic slowdown in China, the world’s biggest consumer of raw materials, is deepening.
- Glencore (OTCPK:GLCNF, OTCPK:GLNCY) fell to a new intraday low of 107 pence/share, down more than 9% for the worst performance on the U.K.’s FTSE 100 index; Anglo American (OTCPK:AAUKF, OTCPK:AAUKY), ArcelorMittal (NYSE:MT) and Antofagasta (OTC:ANFGF) each fall more than 6%, while BHP Billiton (NYSE:BHP) and Rio Tinto (NYSE:RIO) rank among the 10 biggest decliners, down ~4.3% each.
- Credit Suisse cuts its earnings estimates across the mining sector, saying “Until China demand and emerging market currencies find a floor, it will remain challenging to put an absolute floor on commodity prices."
- The firm cuts its stock price targets for diversified miners including BHP, which also says it is planning to sell hybrid securities to help refinance near-term liabilities.
- Moody's says miners likely will be the hardest hit of any sector in Europe, the Middle East and Africa as a result of China’s economic slowdown.
- Also: FCX -4.5%, VALE -4.1%, X -2.8%, AA -1.7% premarket.
Aug. 31, 2015, 10:55 AM
- ArcelorMittal's (MT -3.8%) South African unit says it is planning to shut two mills and review operations at its largest plant in the country, as the money-losing unit struggles with weak demand and lower prices.
- MT says it has started discussions with unions about the closure of two mills, cutting as many as 400 jobs, at its plant in Vereeniging, and that operations at its largest plant, at Vanderbijlpark, remain unprofitable and will be reviewed before the end of October.
- South Africa's government last week raised the import tariff on steel to 10%, the maximum level allowed by the WTO.
Aug. 11, 2015, 5:37 PM
- Six of the biggest U.S. steelmakers - U.S. Steel (NYSE:X), Nucor (NYSE:NUE), AK Steel (NYSE:AKS), ArcelorMittal (NYSE:MT), Steel Dynamics (NASDAQ:STLD) and SSAB Enterprises - file another petition asking for tariffs on imports of foreign steel, and warn that China’s devaluation of the yuan could have severe repercussions on their industry.
- The request includes imports of hot-rolled coil, which is used in making cars, from Australia, Brazil, Japan, South Korea, the Netherlands, Turkey and the U.K.; China was not named because the U.S. already has tariffs on hot-rolled imports from China.
- Imports of hot-rolled steel from the seven countries rose 73% during 2012-14, rising to 3.3M tons from 1.9M tons, according to AK Steel.
Aug. 11, 2015, 11:35 AM
- Commodity metals are getting hammered by China's devaluation, with aluminum trading down nearly 2%, copper prices lower by 2.5% and nickel plunging more than 3.5%.
- Hardest hit of the mining stocks is Freeport McMoRan (FCX -14.1%), which has completely surrendered yesterday's 10.8% surge; shares now are down 72% over the past year and 57% YTD.
- Iron ore miners are sharply lower: BHP -5.5%, RIO -4.2%, VALE -7.8%, CLF -7.3%.
- Steel companies: X -9.7%, MT -5.1%, AKS -5.7%, NUE -2.9%, STLD -3.5%, CMC -4%.
- Also: AA -6%, CENX -4.9%, TCK -8.2%, SCCO -4.9%.
- ETFs: XLB, JJC, XME, SLX, PEO, VAW, COPX, DBB, UYM, CU, IYM, JJN, SMN, JJU, PICK, MATL, CPER, JJT, BOM, RJZ, FXZ, PYZ, BOS, FOIL, JJM, LD, BDD
Aug. 3, 2015, 5:35 PM
- ACHC, ACLS, AFG, AHS, AMSG, ARC, ATVI, AWAY, AWR, BKH, BW, CDE, CENT, CERN, CHUY, CSU, CVG, CWEI, CZR, DIS, DVA, DVN, DWA, ECOM, ECYT, ENPH, ENSG, EOX, EPAM, EPR, ETSY, EXAR, FSLR, FWM, G, GDOT, GHDX, GLUU, GNW, HCI, HIW, HRZN, INAP, INVN, JCOM, JIVE, LBTYA, LC, LF, LGND, MASI, MATX, MBI, MDRX, MHLD, MPO, MRCY, MTDR, NBR, NEWP, NFX, NSTG, NYMT, OAS, OCLR, OFIX, OKE, OKS, PAA, PAGP, PAYC, PBPB, PKD, PQ, PRMW, PTLA, PXD, PZZA, QNST, QUAD, REGI, REXX, RIGL, RLOC, RMTI, RPAI, RXN, SBRA, SKT, SMCI, SUPN, SYNC, THOR, TMH, TRMB, TROX, TTGT, TWO, TX, UNTD, UNXL, USNA, WR, WTR, XEC, XXIA, Y, Z, ZAGG, ZEN
Jul. 31, 2015, 8:28 AM
- ArcelorMittal (NYSE:MT): Q2 EPS of $0.10
- Revenue of $16.9B (-18.4% Y/Y) misses by $490M.
Jul. 31, 2015, 5:01 AM
- With forecast-beating earnings underpinning market sentiment, European stocks advanced slightly after a three-day gain, heading for their biggest monthly jump since February.
- Among the European notables this morning: Airbus (OTCPK:EADSY) +3.5% despite a new A400M charge; BNP Paribas (OTC:BNPZY) +3% after beating expectations; CaixaBank (OTCPK:CAIXY) -1.8% after cutting guidance; Lloyds (NYSE:LYG) is little changed; ArcelorMittal (NYSE:MT) +1.8% on keeping forecasts; Carrefour (OTCPK:CRRFY) edged higher after a profit rise; BG Group (OTCQX:BRGYY) up slightly despite a 65% slump in net income.
- Europe: FTSE 100 flat; DAX +0.1%; CAC 40 +0.4%; Euro Stoxx 50 +0.1%.
ArcelorMittal SA is engaged in steelmaking and mining activities. It operates through the following segments: NAFTA, Europe, Brazil, ACIS and Mining. The company was founded on June 25, 2006 and is headquartered in Luxembourg.
Sector: Basic Materials
Industry: Steel & Iron
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