NEW YORK (TheStreet) -- Shares of United States Steel (X) are climbing by 6.11% to $14.93 on Thursday afternoon, after the U.S. Department of Commerce placed new import tariffs on Chinese cold-rolled and corrosion-resistant steel earlier in the week.
Last year, steel companies lost billions of dollars due to cheap imports, primarily from China, which produced an oversupply, the Wall Street Journal reported.
"Our government has done a pretty good job of boxing out the guys who were importing the most-cheap steel. But now the greatest fear we have is that China keeps the cheap steel for itself and makes products that undercut other industries," Stuart Barnett, owner of Chicago-based Barsteel, told the Journal.
In April, U.S. Steel announced to its customers that base pricing for all new flat-rolled product sport orders rose to $60 per ton.
While the tariffs are good for steel producers, manufacturers of such things as cars and factory equipment are hurting from the raised prices.
"It's not killing me, but I'd love to have lower-priced steel," Marion Van Fasson, president of mining equipment maker Brookville Equipment, says, according to the Wall Street Journal. The small, Pennsylvania-based company requires 10 tons of steel to make one mining engine.
U.S. Steel is an integrated steel producer headquartered in Pittsburgh, engaged in producing flat-rolled and tubular products.
Separately, TheStreet Ratings rated United States Steel as a "sell" with a score of D.
This is driven by some concerns. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.
You can view the full analysis from the report here: X
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.