Mon, Jan. 26, 5:30 PM
Mon, Jan. 26, 12:29 PM
- With just a week of bargaining left until the national contract for U.S. refinery workers expires, talks over a new agreement between the United Steelworkers union and lead oil company negotiator Royal Dutch Shell (RDS.A, RDS.B) appear to be making little progress.
- The USW rejected the first industry proposal on Friday, calling it "inadequate and offensive."
- The union is seeking annual pay raises double those of the last agreement, and wants work given to non-union contractors to go to USW members.
- Reltaed steel tickers: X, AKS, NUE, STLD, CMC, ATI
Fri, Jan. 23, 11:18 AM
- Iron ore miners are broadly lower after Goldman Sachs becomes the latest global bank to deliver a dismal outlook for the steel-making ingredient, forecasting an average price of $66/metric ton this year from an earlier estimate of $80.
- Goldman is at least the fifth bank this month to lower estimates, citing rising seaborne supplies and weaker demand growth from China; just last week, Citigroup cut its iron ore forecast to $58 in 2015, down from its earlier $65, and UBS lowered its target to $66 from $85.
- Low-cost expansions likely will continue as major producers are still mining iron ore at a profit, which would expand the global seaborne surplus from 47M tons this year to 260M tons by 2018, Goldman says.
- Iron ore miners: VALE -8%, BHP -3%, RIO -3.6%, CLF -7.6%.
- Copper miners: FCX -2.6%, SCCO -2.4%, TCK -2.6%.
- Steel companies: X -6.3%, MT -7.1%, AKS -3.2%, NUE -1.2%, STLD -3%, CMC -3.8%, TMST -2.4%.
- Earlier: Goldman gives in on mined commodities
Dec. 22, 2014, 11:24 AM
- South Korea says it has filed a complaint with the WTO seeking to nullify U.S. tariffs levied on imports of certain Korean steel products.
- The U.S. Commerce Department in July imposed tariffs of up to 16% on South Korean steel pipes and tubes used for oil drilling in response to the alleged dumping of steel products in the U.S., and the International Trade Commission confirmed the tariffs in August in what was viewed as a victory for U.S. steelmakers (NYSEARCA:SLX).
- Related stocks: X -5.4%, AKS -5.7%, NUE +0.2%, STLD -1.1%.
Dec. 18, 2014, 9:14 AM| 9 Comments
Dec. 17, 2014, 5:40 PM
Dec. 17, 2014, 5:09 PM
- AK Steel (NYSE:AKS) +7% AH after saying it sees Q4 EPS of $0.05-$0.10, above analyst consensus estimate $0.04, despite incurring ~$31M in costs associated with a planned Ashland Works blast furnace outage.
- AKS says it expects shipments to jump 37% Q/Q to 2M tons in the current quarter from ~1.46M shipped in Q3, helped by acquisitions and strong demand from the auto industry.
- AKS also expects to benefit from lower iron ore, carbon scrap and energy costs in Q4 compared to Q3.
- AKS shares already had surged 6% in the regular trading session, as steel companies (NYSEARCA:SLX) finished broadly higher.
Dec. 10, 2014, 2:59 PM
- J.P. Morgan analysts remain cautious on the steel industry (NYSEARCA:SLX), as the high U.S. steel price premium over Chinese prices should continue to attract imports into the U.S. and put downward pressure on domestic steel prices.
- Hot rolled coil prices have fallen 12% from a high of $700/ton this summer, which JPM says was largely due to temporary production outages which are now back in supply.
- While integrated steel mills U.S. Steel (X -5.4%) and AK Steel (AKS -3.3%) are more leveraged to pricing momentum, the firm prefers Steel Dynamics (STLD -3.2%) and Nucor (NUE -2.6%) given their variable cost structures and significant leverage to an eventual recovery in non-residential construction activity.
Dec. 5, 2014, 2:36 PM
- U.S. Steel (X +0.7%) depends on U.S. oil producers for a big chunk of its profits, prompting some analyst warnings of potential trouble ahead for the company.
- Axiom Capital's Gordon Johnson, for one, says that when oil prices in 2009 were at today's levels, U.S. Steel’s tubular business saw a contraction in overall rig counts and began generating negative operating margins.
- Morgan Stanley’s Evan Kurtz, however, sees upside for Steel Dynamics (STLD +0.2%) as consensus begins to incorporate lower scrap costs.
- Also: MT +0.6%, AKS -0.7%, NUE -0.7%,
Nov. 19, 2014, 12:26 PM
- Iron ore prices extend their historic decline, approaching $70/dry ton in a retreat to the lowest level in more than five years, as analysts rule out any Chinese restocking that typically supports prices towards the end of each year.
- The price is now at a level at which all but the three biggest low-cost producers - Rio Tinto (RIO -2.4%), BHP Billiton (BHP -3%) and Fortescue (OTCPK:FSUMF -8.8%) - are either generating losses or are struggling to break even.
- Steel stocks also are getting whacked: SCHN -5.4%, X -4%, PKX -3%, AKS -3%, CMC -2.7%, STLD -2.5%, NUE -1.6%, MT -1.3%.
Nov. 18, 2014, 12:49 PM
- Iron ore extends its tumble deeper into five-year lows as declining home prices in China add to worries that an economic slowdown in iron ore's biggest buyer will deepen and exacerbate an oversupply.
- Ore with 62% content delivered to Qingdao, China, has retreated 47% YTD to $71.80 a dry ton, and Citigroup thinks prices may drop to less than $60/ton next year as output rises further and demand remains weak; China’s bad loans climbed in Q3 by the most since 2005, while new-home prices declined, adding to speculation the cooling economy will weaken further.
- VALE -2.9%, RIO -1.9%, BHP -1.1%, CLF -6%, X -1.4%, AKS -1.9%.
Nov. 7, 2014, 2:17 PM
- AK Steel (AKS +9.7%) surges nearly 10% after CEO/President James Wainscott discloses the Nov. 6 purchase of 160K shares at $6.18 each, worth $988K.
- Yesterday, AKS announced that the U.S. International Trade Commission decided to impose an anti-dumping order on steel imports from six different countries.
Nov. 6, 2014, 4:55 PM
- The U.S. confirms it will levy duties on imports of non-oriented electrical steel from China, Germany, Japan, South Korea, Sweden and Taiwan.
- The U.S. International Trade Commission found imports of the steel, used in motors, transformers and generators, hurt the local industry, after a complaint from AK Steel (NYSE:AKS).
- The final determination means that anti-dumping orders will be imposed against imports from all six countries, and countervailing duty orders will be imposed against imports from China and Taiwan.
Nov. 4, 2014, 1:19 PM
- AK Steel (AKS -14.2%) is sharply lower despite reporting Q3 results that beat expectations, as investors appear to focus on a planned outage at one of its blast furnaces that is being pulled up into Q4 after originally being planned for 2015.
- While not providing specific Q4 guidance, AKS said Q4 results will be affected by the outage at its Ashland Works blast furnace which began in late October and should last ~28 days; the outage was advanced to Q4 from 2015 to fully address operational issues that began earlier this year.
- On its earnings conference call, AKS said Q3 was the company's best overall quarterly performance in five years; the higher EPS was helped by increased shipments as well as lower raw material and energy costs, and the automotive business enjoyed its best quarter since Q1 2006 (Briefing.com).
Nov. 4, 2014, 8:35 AM
Nov. 3, 2014, 5:30 PM
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