Nucor Unveils Bullish Outlook, Steel Stocks Climb

Shares of U.S. Steel and AK Steel, surged Wednesday after the largest U.S. steel manufacturer, Nucor, unveiled a bullish industry outlook for the rest of 2016.

Author:: TheStreet Staff
Publish date:: Jun 15, 2016 3:40 PM EDT

Shares of U.S. Steel (X) - Get Report and AK Steel (AKS) - Get Report , both members of Real Money's Stressed Out watch list, surged Wednesday after the largest U.S. steel manufacturer, Nucor (NUE) - Get Report , unveiled a bullish industry outlook for the rest of 2016. The company said the Commerce Department's May decision to impose a 266 percent tariff on Chinese cold-rolled steel imports will meaningfully help steady and lift the global steel market. Prices of cold-rolled steel imports are up more than 20 percent over the past two months. U.S. Steel shareholders also benefited Wednesday from a Bank of America analyst upgrade to NEUTRAL from UNDERPERFORM, as well as a price target hike to $18 from $10, based on rising steel prices and an improved corporate debt structure. Meanwhile, shares of TimkenSteel (TMST) - Get Report , also a member of the Stressed Out watch list, climbed slightly.