US Steel (X) Raised Carbon Flat Rolled Prices by $25/t, Says Goldman Sachs (AKS)

US Steel (NYSE: X) announced a $25 per ton price increase for flat rolled steel, said Goldman Sachs analyst Sal Tharani in a research note, citing channel checks. The change is seen as benefiting both US Steel and AK Steel (NYSE: AKS).

"According to our channel checks, US Steel this afternoon announced a $25/t increase for flat rolled steel effective immediately. Steel Business Briefing quotes current HRC price at $670/t," said Tharani.

"We believe that the market was not expecting this move. We also had expected a further decline to about $600/t for HRC before a rebound in late August to early September. Although it is yet to be seen whether this price increase will stick and others steel producers will follow suit, we believe that the announcement underpins our view that US flat rolled steel fundamentals are tight, and demand is surpassing supply despite historically high imports. This also affirms commentary at our Annual Steel Dinner from various steel industry participants that the market is balanced to tight, primarily due to strong demand. This announcement indicates that a relatively more consolidated carbon flat rolled industry will exhibit better discipline and will have better pricing power," he added.

For an analyst ratings summary and ratings history on US Steel click here. For more ratings news on US Steel click here.

Shares of US Steel closed at $26.04 yesterday.

You May Also Be Interested In

• HSBC Downgrades Feng Tay Enterprises (9910:TT) to Hold
• Yageo Corp. (2327:TT) (YAGOY) PT Lowered to NT$656 at HSBC
• Comerica (CMA) PT Raised to $54 at Piper Sandler