NEW YORK (TheStreet) -- Shares of ArcelorMittal (MT) were gaining 5.4% to $11.55 on heavy trading volume Thursday after the European Union announced new tariffs on electrical steel from the U.S., Russia, Japan, China, and South Korea.
The European Commission set tariffs as high as 35.9% on grain-oriented flat-rolled electrical steel following a June 2014 complaint from Eurofer, the European steel producers association, according to Reuters.
The new tariffs are provisional pending the outcome of an investigation that's due in the end of November. The duties could continue for five years depending on the outcome.
ArcelorMittal will not be affected by the new tariffs as it is based in Luxembourg.
About 9.2 million shares of ArcelorMittal were traded by 11:50 a.m. Thursday, above the company's average trading volume of about 6.9 million shares a day.
TheStreet Ratings team rates ARCELORMITTAL SA as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate ARCELORMITTAL SA (MT) 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. Among the primary strengths of the company is its respectable return on equity which we feel is likely to continue. At the same time, however, we also find weaknesses including unimpressive growth in net income, poor profit margins and weak operating cash flow."