U.S. ferrous metals including steel could receive a boost in prices from Tropical Storm Harvey as Houston, decimated by the storm, handles between 30% to 35% of U.S. steel imports, KeyBanc analyst Philip Gibbs noted.
The storm could also cause delays in both imports and exports of steel, and Gibbs sees the effects as a "relative tactical positive" for steel companies including U.S. Steel (X) - Get United States Steel Corporation Report and AK Steel (AKS) - Get AK Steel Holding Corporation Report .
Gibbs contends that scrap prices in the U.S. will increase $15 to $30 per long ton in September, to make up for an uptick in recent export pricing. But prices could increase further because of Harvey's impacts.
Shares of U.S. Steel were climbing over 3%, while shares of AK Steel were rising over 2% in afternoon trading on Tuesday.
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