NEW YORK (TheStreet) -- United States Steel (X) rose Wednesday after the company announced it would indefinitely idle two plants in Texas and Pennsylvania that make steel pipe and tube for the oil and gas industries.
The company cited illegally priced imports as the reason for the idling, which affects approximately 260 workers.
The closures require 60 days' notice under federal law and should occur in early August. This is around the time U.S. trade officials should make a final decision on whether to impose tariffs on steel from South Korea, whose steel exports to the U.S. increased 73% in the first four months of 2014 compared to the same period in 2013.
U.S. trade officials made a preliminary decision in February that South Korea was not "dumping" steel, or selling it at unfair prices. The South Korean government announced it was happy with this decision and hoped the final ruling would follow suit. But the U.S. steel industry has since increased pressure to impose tariffs on steel it claims the South Korean government is subsidizing and selling at a 10% to 20% discount.
The stock was up 2.93% to $23.40 at 10:30 a.m.
Separately, TheStreet Ratings team rates UNITED STATES STEEL CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate UNITED STATES STEEL CORP (X) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, good cash flow from operations and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, disappointing return on equity and poor profit margins."