Several stocks of major steel corporations were climbing on Monday following an upgrade of the firms at Longbow, citing strong evidence of an improved steel distribution market.
During early afternoon trading on Monday, shares of U.S. Steel ( X) were higher over 2.4%, shares of AK Steel ( AKS) were climbing over 2%, shares of Nucor ( NUE) were gaining over 1.5%, and shares of Steel Dynamics ( STLD) were moving nearly 1% higher after all were upgraded to "Buy" from "Neutral" at the firm.
After speaking with contacts in the sector, Longbow analyst Chris Olin sees Hot-Rolled Coil Steel prices rising by $50 to $60 per ton, spurred by a "recent uptick in downstream steel orders, inventory adjustments and a large pullback in the number of steel import offers."
Olin also sees improved chances of near-term government support of the U.S. steel sector in the form of protection from imports at 70% to 80%, up from 50% last month.
He reported that "some buyers" expect the HRC price to rise to $700 to $750 per ton following the government action, up from $590 to $600 currently.
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All eyes on Apple this week: Apple's (AAPL) stock will be on the minds of Wall Street bit more than the norm this week. Shares of the tech giant have fallen 6.9% since the Nasdaq's peak on June 8 amid a broader selloff in tech. Not helping near-term sentiment on the company are two rare analyst downgrades that have questioned how big a seller the iPhone 8 will be.