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Steel stocks should be owned ahead of Section 232 news, Jefferies says

Published 06/28/2017, 12:43 PM
© Reuters.  Steel stocks should be owned ahead of Section 232 news, Jefferies says
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  • Steel companies (SLX +3.6%) are set to benefit as "meaningful Steel Section 232 measures are nearing," Jefferies analyst Seth Rosenfeld contends as he recommends buying U.S. Steel (X +4.2%), Nucor (NUE +2.1%), AK Steel (AKS +3.2%), Steel Dynamics (STLD +3.1%) and ArcelorMittal (MT +3.5%).
  • Rosenfeld says Earl Comstock, director of the Commerce Department's Office of Policy & Strategic Planning, criticized existing anti-dumping and countervailing duties as part of an endless "whack-a-mole" problem whereas Section 232 offers more holistic policy options.
  • The analyst thinks measures will not come until July, and will be more nuanced to prevent prices from rising too quickly and hitting steel consumers.
  • Now read: The First Shots In The Trade War Have Been Fired, And You Got Hit!


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