Investors have suddenly become steel industry and company believers after the performance of Steel Dynamics, Inc. (Nasdaq:STLD) and the release of estimates for glow steel production by the World Steel Association, which pushed up the share prices of Mechel OAO (NYSE:MTL), Olympic Steel Inc. (Nasdaq:ZEUS), Haynes International Inc. (Nasdaq:HAYN) and Cliffs Natural Resources Inc. (NYSE:CLF) Wednesday.
Steel Dynamics gave as its reason for the optimism as growing backlogs in the company’s structural and rail division, but quietly added some of that could have been weather-related.
Also the projected global steel consumption growth of 5.9 percent didn't included the potential devastating effect the slowdown in Japan will have, as it's the largest consumer of steel in the world. Without that, the numbers are pretty meaningless. And it will take time, as with everything related to Japan at this time, before we know the full impact on steel and other sectors.
Haynes International Inc. closed Wednesday at $49.89, gaining $1.14, or 2.34 percent. Cliffs Natural Resources Inc. ended the day at $95.91, up $1.01, or 1.06 percent. Olympic Steel Inc. closed at $30.71, jumping $0.15, or 0.49 percent. Mechel OAO closed the session at $28.75, rising $0.69, or 2.46 percent.
Thursday, April 21, 2011
Mechel (MTL) (ZEUS) (HAYN) (CLF) Get Boost from Steel Consumption Report, (STLD)
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2 comments:
"Slowdown for steel in Japan" ???? Really? So how are they going to rebuild without steel?
I completely agree the comment above. Japan is going to have a gigantic amount of rebuilding to do. While the crisis in Japan may result in a very short term lull in their demand for steel it is going to lead to a huge increase as they begin to rebuild.
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