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Key Highlights from Steel Companies’ 3Q15 Earnings (Continued from Prior Part) Lower steel prices
Steel prices are a key driver of steel companies’ earnings. In the US, steel prices have been weak for almost a year. In our recent series, we noted that spot HRC (hot-rolled coil) prices in the US (SPY) are almost near their 2009 lows. Let’s see how different steel companies’ average steel selling prices played out in 3Q15.
Steel Dynamics
- The above graph shows the trend in average steel selling prices for different steel companies. As you can see, most steel companies in our coverage reported a fall in the average selling prices compared to the previous quarter.
- The average steel selling prices of U.S. Steel (X) and AK Steel (AKS) fell more than 2% in 3Q15—compared to 2Q15.
- Nucor’s (NUE) average steel selling prices in 3Q15 were almost flat compared to the previous quarter.
- Steel Dynamics (STLD) was an exception. The company’s average steel selling prices in 3Q15 rose marginally by $3 per metric ton—compared to 2Q15. Mark. D. Millet, Steel Dynamics’ CEO, said during the company’s 3Q15 earnings call that “Our value-add diversified product mix allowed better than industry performance.”
Industry woes
In regards to the company’s 3Q15 results, AK Steel’s CEO, James L. Wainscott, said that “During the third quarter, we faced significant challenges especially in terms of pressures on carbon steel spot market selling prices, order intake rates, production volumes and shipments. And all of these challenges stem from a common and a continuing problem: imports.”
The dual impact of falling steel shipments and lower steel pricing was evident in steel companies’ 3Q15 earnings. We’ll discuss this in the next part of the series.
Continue to Next Part Browse this series on Market Realist:
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United States Steel Corporation
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CODE : X |
ISIN : US9129091081 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
United States Steel is a iron and tin producing company based in United states of america. United States Steel is listed in United States of America. Its market capitalisation is US$ 7.2 billions as of today (€ 6.3 billions). Its stock quote reached its lowest recent point on March 28, 2003 at US$ 10.01, and its highest recent level on November 30, 2007 at US$ 98.85. United States Steel has 176 184 431 shares outstanding. |