This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Steel Stocks Surged in July

Steel and steel-related stock performance outperformed the S&P 500 in July. The S&P Steel Supercomposite Index was up 9.6% against a 6.9% increase for the S&P 500 during the month.

Some 27 stocks outperformed the broad market while 14 underperformed. Nineteen stocks advanced by 10% or more with only four securities posting a negative return for the month. July was highlighted by an 85.5% increase for Samuel Manu-Tech (take-out driven) and a 42.7% gain for Universal Stainless (USAP - Get Report) and Alloy (ALOY). The two worst performers during July were Insteel (IIIN - Get Report) and Metals USA (MUSA - Get Report), down 20.1% and 17.1%, respectively.

Sub-Group Performance Shows Broad Strength.

Specialty steelmakers posted the largest increase in July -- rising 24.1% -- while the raw materials providers and blast furnace steelmakers registered gains of 14.0% and 12.0%, respectively.

The service center group also outperformed, up some 14.5%, buoyed by an 85.5% gain in shares of Samuel Manu-Tech after it agreed to be taken private late in the month. Excluding Samuel, the group still registered a 5.6% advance.

The underperformers were the mini-mill steelmaker index, up 6.1% in July, and pipe & tube stocks which posted a small 2.5% advance. Given the leveling off in pipe prices over the last month, the smaller gains for this sub-group are not surprising. Over the past 12 months, only the mini-mill sub-index trailed the broader market, posting a 5.8% gain versus the S&P 500's 11.6% advance.


We believe that steel prices are past their bottom in China and this will drive global pricing to begin to improve in coming weeks. However, we remain concerned about recent trade press reports that Chinese mills are sidestepping the government's attempts to make exporting excess production less attractive.

Critical to our thought process is a leveling off of exports from China, and in order for that to happen, we do need to see production remain at current - and lower - levels. We remain optimistic that we'll see meaningful improvements in pricing in coming months.
Michelle Galanter Applebaum spent more than 20 years as a managing director at Salomon Brothers in New York and was the No. 1-rated steel analyst from 1988-2003, according to Institutional Investor magazine. In 2003, Ms. Applebaum formed Steel Market Intelligence, a 5-person Chicago-based equity research boutique providing advisory services to institutional investors. In addition to publishing 10-15 reports/week, Ms. Applebaum sponsors numerous CEO-level meetings for her investor clients during the year. She is regularly quoted on Bloomberg, Dow Jones, The New York Times and makes frequent appearances on CNBC and other news programs. Ms. Applebaum lives near Chicago with her husband, visiting children and 2 dogs.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
IIIN $29.29 0.00%
MUSA $58.73 0.00%
USAP $13.56 0.00%
AAPL $93.64 0.00%
FB $118.57 0.00%


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs