United States Steel Corp.
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 »
Since it is a basic industry and a fundamental player in infrastructure and overall economic development, the steel industry is commonly taken as a reference for how well an economy is doing. Unfortunately, indicators tell us that low demand and lower prices still push the industry down. However, America is showing some signs of recovery, which could push some sleeping steel giants up.
Let’s find out how three of more »
At first glance oil and steel don’t have much in common. Yes, they’re both commodities, but the similarities end there, right? Wrong. There is one major characteristic that the two share: refining operations are the key to both the oil and steel industries.
When it comes to steel, refining is the process of taking already-made steel and customizing it to meet specific demands of customers. Often more »
China’s PMI slightly expanded in July to 50.3 compared to a 50.1 reading in June. As a result, industrial metals’ prices jumped. If readings continue to improve in the following months, it may be a good idea for you to gain exposure to the basic materials sector.
The steel sector was sent to the ground
Steel is one of the most widely used metals due to its more »
Some firms which were once on the cutting edge now find themselves struggling to keep up with the competition. As revenue slips and competitors continue to innovate, once-successful companies try to breathe new life into their firms by reorganizing. Whether working from the bottom up or the top down, companies are striving to reform themselves.
Working from the top down
I tryto invest with a contrarian view, so I like to go against the market. To that end one of my favorite ways to find opportunities for investment is by looking through the most shorted stocks in the S&P 500, to see if I can spot anything others can't.
So, with that in mind, here are the three most shorted companies in the S&P 500 right now more »
This year, the global steel industry is facing the overcapacity issues. Most steel mills are running at 70% capacity while still slugging out of the economic downturn. There is a silver lining, however, in the form of rising demand from growing economies like India, China, Thailand, and South Korea. This growth in demand is expected to benefit the steel producers in terms of price, revenue, and margin.
Here are three more »
Usually, one wouldn't want to tread into the territory of Russian stocks. The precise reason being stocks based in Russia tend to be volatile because of governmental interference, political situations and influential people like (who else?) Vladimir Putin. On the upside, certain Russian stocks provide an opportunity for discerning investors to purchase under-priced stocks if they are willing to take risks.
One company that particularly interests me is Mechel 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 »
Declining readings in China’s PMI index should set alarms ringing in various sectors, especially metals, because it suggests that manufacturing activity is slowing down. Steel, for example, is used in several industrial applications. China is also the main importer of steel in the world. Therefore, I recommend investors to steer away from these companies now.
Low industrial activity equals low steel demand
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 »
The steel industry has had a rough couple of years, and the share prices of integrated steelmakers certainly reflect this. Some companies have been beaten down more than others, and AK Steel Holding Corp (NYSE: AKS) has been one of the worst performers in the sector. It could also turn out to be a gold mine for new investors if they successfully turn things around. However, that is a very more »
Concerns regarding China’s slowdown in economic growth are hitting several sectors in the stock market. Coal and steel stocks are the most affected because China is a main importer of both commodities. On July 15, China’s GDP growth was estimated at 7.5%. However, steel production slowed down. This prompts for the evaluation of stocks that have a high exposure to Chinese markets to determine if they can more »
According to the S&P Case-Shiller index, home prices rose as much as 12.1% year-over-year. The improvement was a result of strong new home sales, which came at their highest level in five years. I think it's time to get on the back of this upward trend and make real estate and construction related investments. Below I describe my top three three equity real estate ideas.
US Real more »
Alcoa's (NYSE: AA) recent earnings report, which beat expectations, has brought back some faith in the global economic recovery. Indeed, by beating expectations, Alcoa has silenced critics and reassured bulls in the basic-materials sector.
Alcoa reported EPS of $0.07, beating the consensus estimate for EPS of $0.06 for the period. Sales fell 19% to $5.8 billion, surpassing the the consensus estimate of approximately $5.8 billion 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 »
Both the steel and aluminum industries have seen some of the worst days recently as both groups have seen profitability decline miserably in the face of overcapacity problems. Supply seems to keep increasing whereas the demand has not been strong enough to cover up for excess inventories. And above all that, both have been hit by a prisoner’s dilemma where none of the players is willing to cut its 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 »
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