Goldman Sachs Said March Service Center Data a Positive for Steel, Earnings A Positive Catalyst (STLD) (X) (RS)

Goldman Sachs said March service center data is yet another positive signal for the U.S. steel sector.

The firm noted that monthly shipments rose by 20% sequentially to 3.8 mn tons, a level not seen since August 2008. At the same time, inventories increased by only 1% to 8 mn tons. The daily shipment volume was up 4% sequentially (up 19% from last year) to 166K tons. Flat rolled products reached a shipment volume of 2.4 mn tons (up 21% yoy), the highest level since June 2008, while the inventories declined by 1.5% sequentially.

Goldman sees Q1 earnings as a positive catalyst for the sector and are buyers of Steel Dynamics Inc. (Nasdaq: STLD), United States Steel Corp. (NYSE: X) and Reliance Steel & Aluminum Co. (NYSE: RS).

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