Hecla Mining (HL), Mechel (MTL), ArcelorMittal (MT), Potash (POT), Agrium Inc. (AGU), Pan American Silver (PAAS) and American Express (AXP) had ratings and price targets on them adjusted by analysts.
BNP Paribas upgraded ArcelorMittal (MT) from an "Underperform" rating to a "Neutral" rating.
UBS AG downgraded Mechel (MTL) from a "Buy" rating to a "Neutral" rating.
Stifel Nicolaus initiated coverage on Potash (POT). They placed a "Buy" rating and price target of $56.00 on the company.
Stifel Nicolaus initiated coverage on Agrium Inc. (AGU). They placed a "Buy" rating and price target of $105.00 on the company.
Deutsche Bank initiated coverage on Hecla Mining (HL). They placed a "Hold" rating and price target of $5.50 on the company.
BMO Capital Markets initiated coverage on Pan American Silver (PAAS). They placed an "Outperform" rating and price target of $35.00 on the company.
Wells Fargo & Co. downgraded American Express (AXP) from an "Outperform" rating to a "Market Perform" rating.
Showing posts with label Mechel OAO. Show all posts
Showing posts with label Mechel OAO. Show all posts
Monday, April 2, 2012
Wednesday, May 18, 2011
Mechel OAO (MTL) Faces Cost, Price Volatility
Mechel OAO (NYSE:MTL) is under pressure with the rest of the steel sector as costs mount for raw materials and steel demand slows.
A lot of uncertainty surrounds the steel industry based on the guidance given by the largest steelmaker in the world - ArcelorMittal (NYSE:MT). Even after beating estimates for the latest quarter the stock was punished on a weak outlook, dragging down much of the sector with it.
Softer steel prices in North America and Europe point to major challenges going forward for steel companies, as margins will continue to come under pressure.
According to Banco Santander SA, costs of coking coal jumped 68 percent and iron ore 77 percent in the first quarter of 2011.
The steel industry is projected to grow at a 5.9 percent clip this year, says the World Steel Association. Some think that's at the high end of the spectrum.
Pricing will remain a challenge in light of the new pricing system put in place where steelmakers say it's harder to pass on costs to customers because of difficulty in projecting costs.
Expectations are the second half of 2011 will be slow for the industry.
Mechel OAO operates as a mining and steel company in the Russian Federation and internationally.
A lot of uncertainty surrounds the steel industry based on the guidance given by the largest steelmaker in the world - ArcelorMittal (NYSE:MT). Even after beating estimates for the latest quarter the stock was punished on a weak outlook, dragging down much of the sector with it.
Softer steel prices in North America and Europe point to major challenges going forward for steel companies, as margins will continue to come under pressure.
According to Banco Santander SA, costs of coking coal jumped 68 percent and iron ore 77 percent in the first quarter of 2011.
The steel industry is projected to grow at a 5.9 percent clip this year, says the World Steel Association. Some think that's at the high end of the spectrum.
Pricing will remain a challenge in light of the new pricing system put in place where steelmakers say it's harder to pass on costs to customers because of difficulty in projecting costs.
Expectations are the second half of 2011 will be slow for the industry.
Mechel OAO operates as a mining and steel company in the Russian Federation and internationally.
Mechel OAO (MTL) Faces Cost, Price Volatility
Mechel OAO (NYSE:MTL) is under pressure with the rest of the steel sector as costs mount for raw materials and steel demand slows.
A lot of uncertainty surrounds the steel industry based on the guidance given by the largest steelmaker in the world - ArcelorMittal (NYSE:MT). Even after beating estimates for the latest quarter the stock was punished on a weak outlook, dragging down much of the sector with it.
Softer steel prices in North America and Europe point to major challenges going forward for steel companies, as margins will continue to come under pressure.
According to Banco Santander SA, costs of coking coal jumped 68 percent and iron ore 77 percent in the first quarter of 2011.
The steel industry is projected to grow at a 5.9 percent clip this year, says the World Steel Association. Some think that's at the high end of the spectrum.
Pricing will remain a challenge in light of the new pricing system put in place where steelmakers say it's harder to pass on costs to customers because of difficulty in projecting costs.
Expectations are the second half of 2011 will be slow for the industry.
Mechel OAO operates as a mining and steel company in the Russian Federation and internationally.
A lot of uncertainty surrounds the steel industry based on the guidance given by the largest steelmaker in the world - ArcelorMittal (NYSE:MT). Even after beating estimates for the latest quarter the stock was punished on a weak outlook, dragging down much of the sector with it.
Softer steel prices in North America and Europe point to major challenges going forward for steel companies, as margins will continue to come under pressure.
According to Banco Santander SA, costs of coking coal jumped 68 percent and iron ore 77 percent in the first quarter of 2011.
The steel industry is projected to grow at a 5.9 percent clip this year, says the World Steel Association. Some think that's at the high end of the spectrum.
Pricing will remain a challenge in light of the new pricing system put in place where steelmakers say it's harder to pass on costs to customers because of difficulty in projecting costs.
Expectations are the second half of 2011 will be slow for the industry.
Mechel OAO operates as a mining and steel company in the Russian Federation and internationally.
Thursday, May 5, 2011
Steel's (MTL) (GSI) (GGB) (HAYN) (IIIN) and China Demand
As goes China so goes the demand for steel, and in that regard it doesn't look good for steel companies like General Steel Holdings, (NYSE:GSI), Gerdau S.A. (NYSE:GGB), Haynes International Inc. (Nasdaq:HAYN), Insteel Industries Inc. (Nasdaq:IIIN) and Mechel OAO (NYSE:MTL) , which are going to be pressured in the years ahead from declining demand from the Middle Kingdom.
According to the China Iron & Steel Association, the Chinese government is pushing to slow down economic growth, which will result in demand for steel in the country to slow down.
Estimates under the current scenario for the steel sector have steel consumption declining in China by a minimum of 2.6 percent to as high as 4.6 percent in 2011.
Globally it doesn't look good for the next five years or so either, as the top estimates are for steel demand to grow at a 5 percent rate annually, although many think it'll be less than that.
In the short term, the U.S. steel industry should ship product at 14 percent above 2010 levels, reaching about 95 million tons in 2011.
All the companies are being affected by soaring iron ore prices and other inputs, which are putting stress on margins and earnings because buyers are hesitating to acquire product at too high of prices; something that will continue for several years.
For the steel industry, there isn't much to be optimistic about, no matter how the situation is spun. It's going to remain tough for some time.
Mechel OAO closed Wednesday at $25.77, falling $1.03, or 3.84 percent.
According to the China Iron & Steel Association, the Chinese government is pushing to slow down economic growth, which will result in demand for steel in the country to slow down.
Estimates under the current scenario for the steel sector have steel consumption declining in China by a minimum of 2.6 percent to as high as 4.6 percent in 2011.
Globally it doesn't look good for the next five years or so either, as the top estimates are for steel demand to grow at a 5 percent rate annually, although many think it'll be less than that.
In the short term, the U.S. steel industry should ship product at 14 percent above 2010 levels, reaching about 95 million tons in 2011.
All the companies are being affected by soaring iron ore prices and other inputs, which are putting stress on margins and earnings because buyers are hesitating to acquire product at too high of prices; something that will continue for several years.
For the steel industry, there isn't much to be optimistic about, no matter how the situation is spun. It's going to remain tough for some time.
Mechel OAO closed Wednesday at $25.77, falling $1.03, or 3.84 percent.
Monday, May 2, 2011
Steel Firms (IIIN) (MTL) (SUTR) (TS) (TX) Pressured on Low Growth Outlook
The steel sector, even with some strong recent quarters from companies, looks weak, as over the next five years it is projected to grow at a pace of about 5 percent or less annually, placing downward pressure on steel producers like Insteel Industries Inc. (Nasdaq:IIIN), Mechel OAO (NYSE:MTL), Sutor Technology Group, Ltd. (Nasdaq:SUTR), Tenaris SA (NYSE:TS) and Ternium S.A. (NYSE:TX). And that's the more positive outlook by most analysts. A large number don't believe growth will even happen at that rate.
A majority of steel companies are being pressured to increase prices on their products in order to protect margins and earnings as the price of inputs and commodities rise.
That's not to say steel demand is falling completely, because it's not. But rising demand in some segments doesn't guarantee rising profits, as the industry is experiencing. A number of weak economies around the world could cut also into demand if steel prices and products rise to prohibitive levels.
There's no way to spin the outlook for the steel industry positively. The industry will struggle for years even in the midst of strong demand in some segments, as they attempt to work out the balance between steel demand, rising inputs, and ability for companies and countries to afford price increases from producers.
Tenaris SA closed Friday at $50.79, gaining $0.73, or 1.46 percent.
A majority of steel companies are being pressured to increase prices on their products in order to protect margins and earnings as the price of inputs and commodities rise.
That's not to say steel demand is falling completely, because it's not. But rising demand in some segments doesn't guarantee rising profits, as the industry is experiencing. A number of weak economies around the world could cut also into demand if steel prices and products rise to prohibitive levels.
There's no way to spin the outlook for the steel industry positively. The industry will struggle for years even in the midst of strong demand in some segments, as they attempt to work out the balance between steel demand, rising inputs, and ability for companies and countries to afford price increases from producers.
Tenaris SA closed Friday at $50.79, gaining $0.73, or 1.46 percent.
Friday, April 29, 2011
AK Steel (AKS) (GGB) (GNI) (IIIN) (MTL) (ZEUS) Pressured on Low Growth Steel Outlook
The steel industry, even with some strong recent quarters, looks weak, as over the next five years it is expected to grow at a pace of about 5 percent or less annually, putting downward pressure on steel companies like AK Steel Holding Corporation (NYSE:AKS), Gerdau S.A. (NYSE:GGB), Great Northern Iron Ore Proper (NYSE:GNI), Insteel Industries Inc. (Nasdaq:IIIN), Mechel OAO (NYSE:MTL) and Olympic Steel Inc. (Nasdaq:ZEUS); although they traded a little stronger Thursday.
A majority of steel companies are being forced to raise prices on their products in order to protect margins and earnings as the price of inputs and commodities rise.
That's not to say steel demand is falling, because it's not. But rising demand doesn't guarantee rising profits, as the industry is experiencing. A number of weak economies around the world could cut also into demand if steel prices and products rise to prohibitive levels.
There's no way to spin the outlook for the steel industry positively. The industry will struggle for years even in the midst of strong demand, as they attempt to work out the balance between steel demand, rising inputs, and ability for companies and countries to afford price increases from producers.
It also looks like the U.S. economy is starting to sputter again, and that's not good news for the steel industry either.
A majority of steel companies are being forced to raise prices on their products in order to protect margins and earnings as the price of inputs and commodities rise.
That's not to say steel demand is falling, because it's not. But rising demand doesn't guarantee rising profits, as the industry is experiencing. A number of weak economies around the world could cut also into demand if steel prices and products rise to prohibitive levels.
There's no way to spin the outlook for the steel industry positively. The industry will struggle for years even in the midst of strong demand, as they attempt to work out the balance between steel demand, rising inputs, and ability for companies and countries to afford price increases from producers.
It also looks like the U.S. economy is starting to sputter again, and that's not good news for the steel industry either.
Wednesday, April 27, 2011
Ternium (TX) (MTL) (ROCK) (CPSL) Close Mixed on Growth, Cost Concerns
The steel industry, even with some strong recent quarters, looks weak, as over the next five years it is expected to grow at a pace of about 5 percent or less annually, putting downward pressure on steel producers like Ternium S.A. (NYSE:TX), Mechel OAO (NYSE:MTL), Gibraltar Industries, Inc. (Nasdaq:ROCK) and China Precision Steel, Inc. (Nasdaq:CPSL), which closed mixed on Tuesday. And that's the more positive outlook by the majority of analysts. Many don't think growth will even happen at those modest levels.
A majority of steel companies are being forced to raise prices on their products in order to protect margins and earnings as the price of inputs and commodities rise.
That's not to say steel demand is falling, because it's not. But rising demand doesn't guarantee rising profits, as the industry is experiencing. A number of weak economies around the world could cut also into demand if steel prices and products rise to prohibitive levels.
Of course there a large varieties of companies with steel exposure, and each segment of the sector can represent strengths or weaknesses. So each unit and company will have to be watched closely for performance of course.
There's no way to spin the outlook for the steel industry in a positive manner. The industry will struggle for years even in the midst of strong demand as it attempts to work through the balance between steel demand, rising inputs, and ability for companies and countries to afford price increases from producers.
Some winners will emerge, but over time it's not easy to pick any one that's going to stand out. Some have looked to larger companies who may be able to navigate through the higher costs better, but we'll see if that's the case, as it isn't always that simple because of the wide variety of products and costs and pricing power with each one.
A majority of steel companies are being forced to raise prices on their products in order to protect margins and earnings as the price of inputs and commodities rise.
That's not to say steel demand is falling, because it's not. But rising demand doesn't guarantee rising profits, as the industry is experiencing. A number of weak economies around the world could cut also into demand if steel prices and products rise to prohibitive levels.
Of course there a large varieties of companies with steel exposure, and each segment of the sector can represent strengths or weaknesses. So each unit and company will have to be watched closely for performance of course.
There's no way to spin the outlook for the steel industry in a positive manner. The industry will struggle for years even in the midst of strong demand as it attempts to work through the balance between steel demand, rising inputs, and ability for companies and countries to afford price increases from producers.
Some winners will emerge, but over time it's not easy to pick any one that's going to stand out. Some have looked to larger companies who may be able to navigate through the higher costs better, but we'll see if that's the case, as it isn't always that simple because of the wide variety of products and costs and pricing power with each one.
Monday, April 25, 2011
Ternium (TX) (MTL) (SID) (AKS) Pressured on Low Growth Outlook
The steel industry, even with some strong recent quarters, looks weak, as over the next five years it is expected to grow at a pace of about 5 percent or less annually, putting downward pressure on steel producers like Ternium S.A. (NYSE:TX), Mechel OAO (NYSE:MTL), Companhia Siderurgica Nacional (NYSE:SID) and AK Steel Holding Corporation (NYSE:AKS), even with a couple of decent quarterly results coming from their peers, like Steel Dynamics (NASDAQ:STLD). And that's the more positive outlook by the majority of analysts. Many don't think growth will happen even at that rate.
A majority of steel companies are being pressured to raise prices on their products in order to protect margins and earnings as the price of inputs and commodities jump.
That's not to say steel demand is falling, because it's not. But the slowly rising demand doesn't guarantee rising profits, as the industry is experiencing at this time. A number of weak economies around the world could also cut into demand if steel prices and products rise to prohibitive levels.
There's no way to spin the outlook for the steel industry in a positive manner. The industry will struggle for years, even in the midst of better demand, as it attempts to work out the balance between steel demand, rising inputs, and ability for companies and countries to afford price increases from the producers.
Ternium S.A. closed Thursday at $33.67, falling $0.01, or 0.03 percent. Mechel OAO ended the session at $28.98, gaining $0.23, or 0.80 percent. AK Steel Holding Corporation closed at $30.86, dropping $0.11, or 0.68 percent. Gerdau S.A. closed at $15.94, up $0.07, or 0.44 percent.
A majority of steel companies are being pressured to raise prices on their products in order to protect margins and earnings as the price of inputs and commodities jump.
That's not to say steel demand is falling, because it's not. But the slowly rising demand doesn't guarantee rising profits, as the industry is experiencing at this time. A number of weak economies around the world could also cut into demand if steel prices and products rise to prohibitive levels.
There's no way to spin the outlook for the steel industry in a positive manner. The industry will struggle for years, even in the midst of better demand, as it attempts to work out the balance between steel demand, rising inputs, and ability for companies and countries to afford price increases from the producers.
Ternium S.A. closed Thursday at $33.67, falling $0.01, or 0.03 percent. Mechel OAO ended the session at $28.98, gaining $0.23, or 0.80 percent. AK Steel Holding Corporation closed at $30.86, dropping $0.11, or 0.68 percent. Gerdau S.A. closed at $15.94, up $0.07, or 0.44 percent.
Thursday, April 21, 2011
Mechel (MTL) (ZEUS) (HAYN) (CLF) Get Boost from Steel Consumption Report, (STLD)
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.
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.
Wednesday, April 20, 2011
Mechel (MTL) (ZEUS) (TS) (TX) (WOR) Up on Steel Dynamics' Results
Even though the results of Steel Dynamics (NASDAQ:STLD) gave steel stocks like Mechel OAO (NYSE:MTL), Olympic Steel Inc. (Nasdaq:ZEUS), Tenaris SA (NYSE:TS), Ternium S.A. (NYSE:TX) and Worthington Industries, Inc. (NYSE:WOR) a big boost Tuesday, overall, the steel industry looks weak over the next five years, as it is expected to grow at a pace of 5 percent or less annually, putting downward pressure on steel producers like. And that's the more optimistic outlook by analysts. Most don't think growth will be at that rate.
Most steel companies are being forced to raise prices on their products in order to protect margins and earnings, as the price of inputs and commodities rise.
That's not to say steel demand is dropping, because it's not. But rising demand doesn't guarantee rising profits, as the industry is finding out. Weak economies around the world could cut into demand if steel prices and products rise to prohibitive levels.
There's no way to spin this in a positive manner. The industry will struggle for years even in the midst of strong demand, as they attempt to work out the balance between steel demand, rising inputs, and ability for companies and countries to afford price increases from producers.
As for Steel Dynamics, it admits bad weather in February could have been the reason for the jump in March shipments. Even if steel companies in general have a good quarter to report, it's very doubtful it has changed the outlook over the next several years. It could be a chance to make some quick money though.
Steel Dynamics (NASDAQ:STLD) closed Tuesday at $18.46, gaining $1.00, or 5.73 percent. Worthington Industries, Inc. closed at $20.66, rising $0.59, or 2.94 percent. Ternium S.A. closed at $32.87, jumping $0.32, or 0.98 percent. Tenaris SA ended the session at $48.74, increasing $0.89, or 1.86 percent. Olympic Steel Inc. closed at $30.56, gaining $0.02, or 0.07 percent. Mechel OAO closed at $28.06, gaining $0.77, or 2.82 percent.
Most steel companies are being forced to raise prices on their products in order to protect margins and earnings, as the price of inputs and commodities rise.
That's not to say steel demand is dropping, because it's not. But rising demand doesn't guarantee rising profits, as the industry is finding out. Weak economies around the world could cut into demand if steel prices and products rise to prohibitive levels.
There's no way to spin this in a positive manner. The industry will struggle for years even in the midst of strong demand, as they attempt to work out the balance between steel demand, rising inputs, and ability for companies and countries to afford price increases from producers.
As for Steel Dynamics, it admits bad weather in February could have been the reason for the jump in March shipments. Even if steel companies in general have a good quarter to report, it's very doubtful it has changed the outlook over the next several years. It could be a chance to make some quick money though.
Steel Dynamics (NASDAQ:STLD) closed Tuesday at $18.46, gaining $1.00, or 5.73 percent. Worthington Industries, Inc. closed at $20.66, rising $0.59, or 2.94 percent. Ternium S.A. closed at $32.87, jumping $0.32, or 0.98 percent. Tenaris SA ended the session at $48.74, increasing $0.89, or 1.86 percent. Olympic Steel Inc. closed at $30.56, gaining $0.02, or 0.07 percent. Mechel OAO closed at $28.06, gaining $0.77, or 2.82 percent.
Wednesday, April 13, 2011
Mechel OAO (MTL) (MT) (X) (GGB) Drop as Commodities Correct
A general correction in commodities prices spurred by the plunge in oil prices pressured the steel sector as well, with ArcelorMittal (NYSE:MT), US Steel (NYSE:X), Gerdau S.A. (NYSE:GGB) and Mechel OAO (NYSE:MTL) all closing down Tuesday.
Crude oil prices for May delivery fell as much as 63 cents, or 0.6 percent, to $105.62 a barrel in electronic trading on the New York Mercantile Exchange. The contract was at $106.01 at 10:14 a.m. Sydney time. Yesterday, it fell $3.67 to $106.25. Prices dropped 5.9 percent on April 11 and 12.
The U.S. raised its crude-oil price projection for 2011 to an average $106.38 a barrel from $101.77 in March, according to the Energy Department’s Short-Term Energy Outlook.
Mechel OAO closed Tuesday at $28.58, falling $0.83, or 2.82 percent. Gerdau S.A. closed at $12.36, down $0.41, or 3.21 percent. ArcelorMittal closed at $35.80, dropping $0.72, or 1.97 percent. U.S. Steel ended the session at $50.52, declining $1.20, or 2.32 percent.
Crude oil prices for May delivery fell as much as 63 cents, or 0.6 percent, to $105.62 a barrel in electronic trading on the New York Mercantile Exchange. The contract was at $106.01 at 10:14 a.m. Sydney time. Yesterday, it fell $3.67 to $106.25. Prices dropped 5.9 percent on April 11 and 12.
The U.S. raised its crude-oil price projection for 2011 to an average $106.38 a barrel from $101.77 in March, according to the Energy Department’s Short-Term Energy Outlook.
Mechel OAO closed Tuesday at $28.58, falling $0.83, or 2.82 percent. Gerdau S.A. closed at $12.36, down $0.41, or 3.21 percent. ArcelorMittal closed at $35.80, dropping $0.72, or 1.97 percent. U.S. Steel ended the session at $50.52, declining $1.20, or 2.32 percent.
Monday, April 11, 2011
Steel's (MTL) (CMC) (CPSL) (SID) (GSI) Pressured on Low Growth Outlook
The steel industry is uninspiring as over the next five years it is expected to grow at a pace of 5 percent or less annually, putting downward pressure on steel producers like China Precision Steel, Inc. (Nasdaq:CPSL), Commercial Metals Company (NYSE:CMC), Companhia Siderurgica Nacional (NYSE:SID), Mechel OAO (NYSE:MTL) and General Steel Holdings (NYSE:GSI). And that's the more positive outlook from some analysts.
Steel companies listed represent a good cross section of the industry, as they're based in several countries.
Many steel companies are being forced to increase prices on their products in order to protect margins and earnings, as the price of inputs and commodities continue to surge.
That's not to say steel demand is declining, because it's not. But rising demand doesn't guarantee rising profits, as the industry is finding out. Weak economies around the world could cut into demand if steel prices and products rise to prohibitive levels.
There's no way to spin this positively. The industry will struggle for years, even in the midst of strong demand as they try to figure out the balance between steel demand, rising inputs, and ability for companies and countries to afford price increases from them.
Mechel OAO closed Friday at $30.07, falling $0.65, or 2.12
percent. China Precision Steel, Inc. closed at $1.65, down $0.04, or 2.37 percent. Commercial Metals Company ended the session at $16.93, dropping $0.37, or 2.13 percent. Companhia Siderurgica Nacional closed at $16.83, falling $0.06, or 0.36 percent. General Steel Holdings ended trading at $2.29, down $0.04, or 1.72 percent.
Steel companies listed represent a good cross section of the industry, as they're based in several countries.
Many steel companies are being forced to increase prices on their products in order to protect margins and earnings, as the price of inputs and commodities continue to surge.
That's not to say steel demand is declining, because it's not. But rising demand doesn't guarantee rising profits, as the industry is finding out. Weak economies around the world could cut into demand if steel prices and products rise to prohibitive levels.
There's no way to spin this positively. The industry will struggle for years, even in the midst of strong demand as they try to figure out the balance between steel demand, rising inputs, and ability for companies and countries to afford price increases from them.
Mechel OAO closed Friday at $30.07, falling $0.65, or 2.12
percent. China Precision Steel, Inc. closed at $1.65, down $0.04, or 2.37 percent. Commercial Metals Company ended the session at $16.93, dropping $0.37, or 2.13 percent. Companhia Siderurgica Nacional closed at $16.83, falling $0.06, or 0.36 percent. General Steel Holdings ended trading at $2.29, down $0.04, or 1.72 percent.
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