In the era of growing technical markets globally, hardware advancement and modernization play an important supplementary part in strengthening the encroachment. Steel in different forms, for that purpose, is the central required raw material by the global hardware market.
Steel industry, however was greatly affected by the global turmoil of 2008 but had started strengthening as the market is floating back to normal. ArcelorMittal (NYSE: MT ), the world’s largest more »
Nucor (NYSE: NUE) is the largest steel producer in the U.S., and statistically it is the largest recycler of any material, recycling almost 1 ton of steel every two seconds. The company declared its 2Q 2013 results last month. Let’s take a look at how the largest steel manufacturer based on ‘mini-mills’ fared.
Nucor's revenue decreased 8.6% year-over-year to approximately $4.7 billion, but more »
One of the world's greatest innovators died recently. No, he wasn't from the high tech industry. He didn't invent the latest iDevice. George Mitchell, the founder of the former Mitchell Energy and Development Corp., was widely credited with the pioneering work that combined horizontal drilling and hydraulic fracturing in the Eagle Ford shale rock formation in Texas. He was 94.
His methods led to the unlocking of more »
Note: This post has been amended to better describe Schnitzer.
Steel Dynamics (NASDAQ: STLD)) is a company that was founded by three ex-employees of another steel giant, Nucor (NYSE: NUE). Operating on the concept of ‘mini-mills,’ it’s one of the largest steel makers in North America with an annual capacity of 6.3 million tons. Steel Dynamics is also one of the lowest-cost steel producers in the U.S more »
Note: This post has been amended to clarify Steel Dynamics' outlook.
Companies compete successfully by either differentiating their products or by providing almost identical products at lower costs. Low cost producers are typically market leaders, benefiting from economies of scale. Steel Dynamics (NASDAQ: STLD) is an example of that. It is one of the largest steel producers in the U.S. It runs five steel mini-mills with capacity in excess more »
Demand from China caused a price spike in steel that simply wasn't sustainable. As demand comes back to more normal levels, look for the industry to recover. Consider buying diversified BHP Billiton (NYSE: BBL), innovation specialist Nucor (NYSE: NUE), and global giant ArcelorMittal (NYSE: MT).
Supply and Demand
Commodities are powered by the dynamics of supply and demand. As demand outstrips supply, prices go up. As prices go up more »
ArcelorMittal (NYSE: MT), POSCO (NYSE: PKX) and Nucor (NYSE: NUE) are the largest steel producers in the world, meeting most of the world's demand in all domains of steel products. Thus these companies are able to make good profits each year.
However, AreclorMittal and POSCO are in a much better position as compared to Nucor steel, since both the companies have expanded with the passage of time, moving into more »
Despite the fact that steel is one of the most important products in modern civilization, this year has been tough for steel makers as steel prices have remained low. AK Steel (NYSE: AKS), which is down 25% this year, recently reported its quarterly earnings. The company beat analysts’ estimates, but the difficult period is far from over. Here’s why.
AK Steel reported a net loss of $40 more »
On July 18, the United States’ biggest mini-mill steel producer, Nucor (NYSE: NUE), released its earnings for the second quarter, 2013. The company reported a 24% decline in its income amid low steel prices. With Nucor’s earnings falling prey to low prices, two key questions come to mind: What’s in store for steel prices going forward? And is Nucor a good investment right now?
During more »
Headquartered in Luxembourg, AreclorMittal (NYSE: MT), is the world’s largest steel producer. Just like all major steel stocks, ArcelorMittal has also become a victim of low steel prices. On July 20, shares closed at $12.72, down 26% on a year-over-year basis. With steel prices facing an uncertain future, two key questions arise: What does 2013 have in store for the company? Has ArcelorMittal bottomed?
Recent developments: ArcelorMittal abandons more »
(for Part I about Standard Oil and its offspring, click here).
America didn’t just lead the world in oil at the turn of the last century; it also dominated in another important facet of modern life: steel production. Like Rockefeller was to Standard Oil, Andrew Carnegie was to U.S. Steel (NYSE: X). A company noted for size rather than efficiency, it was responsible for 67% of steel production more »
The steel industry is fighting a long, hard battle in the aftermath of the worst recession since the Great Depression. As the financial crisis set in, demand for everything that counts steel as an input collapsed, and took the major steelmakers to the brink of insolvency.
Fast forward to today, and the recent results from the world’s major steel companies underscores the remaining challenges facing the global economy. Demand more »
With a majority of metals producers having a very difficult 2013 so far, it is becoming tougher to find bright spots in the sector. However, the minimill-steel producers have actually performed well, with sector-leader Nucor (NYSE: NUE) very close to its 52-week high. Why are shares of Nucor and other minimill steelmakers not as beaten down as some other steel plays, such as United States Steel (NYSE: X)? Also, would more »
The US steel market is facing headwinds due to low metal prices. There are many factors that could be causing this issue such as the declining prices of raw materials, all of which impact steel production. On the other hand, increased imports of Chinese steel into US is another reason of concern for these companies.
Despite these issues, investors can still find good opportunities and enter this market. The construction more »
Steel players have seen their stock prices plummeting since June 17. The sharp decline in prices has not come without a reason; it has been the market’s reaction to the poor earnings pre-announcement by the steel companies for the second quarter.
For those who don’t follow steel players regularly, an earnings pre-announcement might seem like an awkward idea. However, this has remained a norm in the steel industry more »
Whenever investors fear economic weakness, the stocks they flee first tend to be in cyclical industries that are also capital-intensive. Likewise, investors tend to return to these stocks last as the economy recovers. Such is the case in the steel industry, where ArcelorMittal (NYSE: MT) cannot seem to catch a bid in the current bull market.
Bleak short-term outlook
There are countless companies that seem cheap, but many have competitive more »
The US steel market is facing headwinds given low metal prices. There are many factors that could be encouraging this issue, including the declining prices of raw materials, which impact steel production. On the other hand, there's been increased imports of Chinese steel into the US, which is another reason of concern for these companies.
Despite all of these issues, investors can find an opportunity to enter this market more »
The outlook for steel producers is not very good. With Chinese growth slowing and demand for steel around the world faltering, steel producers are finding it hard to turn a profit. That said, some of these companies actually offer dividend yields greater than 3%, above the market average of around 2%. So, with the outlook for the steel market deteriorating, are the dividend payouts of these companies sustainable?
The contenders more »
Mining companies have been under pressure this year. Whatever you dig, be it gold, silver, iron ore or coal – your stock would fall. Iron ore and metallurgical coal have been the softest spots so far. Cliffs Natural Resources (NYSE: CLF) has had the luck to mine both iron ore and metallurgical coal, which is why it's no surprise that the stock is down 50% year-to-date. Does it have a more »
The world’s leading steel producer, ArcelorMittal (NYSE: MT), recently released its quarterly results that disappointed investors, but the sequential improvements led to some optimism. Meanwhile, its American rival, United States Steel (NYSE: X), also released its results that weren't any better, but the company is in a good position to capitalize on the changing market conditions. Steel stocks have largely struggled in the past, with the exception of more »
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