Steel Stocks Spike On Manufacturing Data

Investors were betting on a steel-industry recovery Wednesday after a report indicated an uptick in manufacturing from the previous week.

The American Iron & Steel Institute said raw steel production was just over one million net tons for the week ending May 16, up 3.7% from the previous week. That may not seem like much, but given the depths to which the industry had fallen, any positive sign is likely to pique bullish interest.

Options traders made similar moves, taking big positions in U.S. Steel calls, which would pay if the company's stock price rises in the near future.

Shares of U.S. Steel(X Quote) were changing hands Wednesday afternoon at $32.14, up $2.20, or 7.4%, on heavy volume. The stock is down nearly 20% year-to-date and well below its 52-week high of $196, set last summer.

Other steelmakers saw their stock prices spike during the session as well. Gerdau Ameristeel(GNA Quote) was up nearly 4% to $6.17, ArcelorMittal(MT Quote) up 6% to $30.70, Steel Dynamics(STLD Quote) up 4% to $14.24 and Worthington Industries(WOR Quote) up 4% to $13.94.