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 US Steel (NYSE:X), Tenaris SA (NYSE:TS), Ternium S.A. (NYSE:TX) and Harsco Corporation (NYSE:HSC) 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.
Harsco Corporation closed Wednesday at $33.97, gaining $0.27, or 0.80 percent. Ternium S.A. ended the day at $33.68, up $0.81, or 2.46 percent. Tenaris SA closed at $49.35, jumping $0.61, or 1.25 percent. US Steel closed the session at $52.75, rising $0.01, or 0.02 percent.
Thursday, April 21, 2011
US Steel (X) (TS) (TX) (HSC) Get Boost from Steel Consumption Report, (STLD)
Labels:
Harsco,
Tenaris,
Ternium SA,
US Steel
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