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Steel names rally as Kobe Steel crisis deepens

Published 10/13/2017, 12:13 PM
© Reuters.  Steel names rally as Kobe Steel crisis deepens
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  • Shares of steelmakers are on the move after Japan's Kobe Steel (OTCPK:KBSTF, OTCPK:KBSTY) admitted its data cheating may have spread beyond the country to affect ~500 companies, sparking global supply chain concerns.
  • "If you think of any other competitive industry in the commodity business, if one of the major players were knocked out it's looked at as potential for supply disruption which benefits the other players," says Wunderlich's Art Hogan.
  • Also, Chinese finished steel exports in September fell 42% Y/Y to the lowest level since February 2014, which KeyBanc's Philip Gibbs says is encouraging for global supply side dynamics.
  • CLF +9.6%, MT +7.5%, X +7.1%, AKS +5.1%, NUE +1.4%, RS +1.4%, STLD +1.3%, WOR +1.3%, CMC +1.2%.
  • ETF: SLX
  • Now read: Cliffs' Biggest Risk Isn't Cliffs


Original article

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