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U.S. Steel to benefit from higher prices, supply shortage, analyst says

Published 03/29/2018, 08:54 AM
© Reuters.  U.S. Steel to benefit from higher prices, supply shortage, analyst says
  • U.S. Steel (NYSE:X) +2% premarket after Longbow analyst Chris Olin says the company's tubular segment could benefit from new data that shows both domestic mill shipments and market prices trending slightly above expectations.
  • Olin says the oil country tubular goods distributor’s index showed channel expectations at the highest since early 2017, "which should support positive industry momentum for the rest of the year."
  • Underlying energy tubular consumption appears to be up 75% Y/Y, while the spot price for welded products is up 21% Y/Y, the analyst says; among distributors, 35% reported supply shortages in January and 90% expected higher mill prices over the next few months.
  • Other potentially related tickers include SLX, AKS, NUE, STLD, RS, MT, CLF, CMC, WOR.
  • Source: Bloomberg First Word
  • Now read: Reliance Steel: Strong Performer, Great Long-Term Investment


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