Steel Dynamics (Nasdaq:STLD), Reliance Steel & Aluminum (NYSE:RS) Preferred by Goldman (NYSE:GS) Over US Steel (NYSE:X)

Saying US Steel (NYSE:X) won't benefit in the near term from rising spot steel prices, Goldman Sachs (NYSE:GS) said they see Steel Dynamics Inc. (Nasdaq:STLD) and Reliance Steel & Aluminum Co. (NYSE:RS) as better plays at this time.

Margins at the latter two companies above were pointed out by Goldman as major factors in comparing the companies.

Goldman lowered Q1 EPS estimates for US Steel from a profit of $0.80 to a loss of $0.61, but boosted Q2 EPS from $0.73 to $1.57 and Q3 from $0.57 to $1.15. Full year 2011 EPS estimates remain at $2.50. Goldman also increased full year 2012 EPS from $4.65 to $5.00 and introduced a full year 2013 EPS estimate of $5.50.

Goldman reiterates a "Neutral" rating on US Steel, which closed Wednesday at $59.48, gaining $2.18, or 3.80 percent. Steel Dynamics closed at $19.03, gaining $0.71, or 3.88 percent. Reliance Steel ended the trading session at $53.79, up $1.77 percent, or 3.40 percent.