On August 30, 2012, a bundle of Nucor Corporation steel sold at Thompson building materials in Lomita, California was sold.
Patrickfallon | Bloomberg | Getty Image
The US steel manufacturer should be a new tariff beneficiary of President Donald Trump, but Wall Street has warned that there are several risks in the long term.
On Saturday, Trump pounded 25 % of tariffs on imports from Mexico and Canada and 10 % of taxes on imports from China. On Monday, the United States agreed to pause Customica in Mexico for one month in exchange for President Claudia Symbaum to dispatch the northern border to the northern border.
These decisions have overturned the early slides of the stock market. Dow Jones Industrial Average When the trading date began, it has recently dropped about 100 points after sorting 600 points.
After seeing the profits before the market, the stock of steel was absorbed. Nucleus Stocks have risen about 2 % US steel I moved 1 % higher in the morning transaction Steel dynamics It was low.
Nucor has been shared in the past year.
Taxes are expected to make foreign steel more expensive in the United States. Companies hope that US production will rise and give the opportunity to raise prices.
Nucor CEO’s Leon Topalian has been fighting inexpensive foreign imports for many years in an interview with CNBC’s Mad Money last Tuesday. Dumping refers to when foreign countries export products at lower prices than home markets, or fall below production costs.
“It’s an illegal dumping, steel subsidy, and a currency operation that creates a very imbalanced and imbalanced competition that has hurt the steel industry for decades,” said Jim Crammer.
According to the Census Bureau, Canada is a top steel exporter to the United States, but Mexico is the third largest. The country initially targeted the Trump administration’s tariff, but eventually reached a trade contract, including exemption.
MORGAN STANLEY has a direct impact on the price setting of US iron companies.
“We believe that we believe that the price has begun to recover after 2024 challenging in 2024, supported by protectionist trade measures,” said analyst Carlos de Alba. I wrote it. “We will further improve the price in 2026 because the impact of tariffs is flowing through the US economy.”
However, the rise in these prices is relieved by the decrease in demand. Wall Street Investment Bank expects 1.6 % of the “modest” steel demand for 1.6 %.
In addition, De Alba said that he had lowered the US Steel, assumed that the US steel was independent and had not been acquired, and did not see the meaningful advantages of his price target. His goal of $ 39 per share means rising 6 % from the end of Friday.
US steel
The acquisition planned for US steel by Nippon Steel in Japan was blocked by the Biden administration in January. Nucor is currently affiliated Cleveland -Cliff In the potential bidding of the US Steel, the sources recently told CNBC’s David Faber.
On the other hand, UBS also looks at higher steel prices if tariffs are maintained and maintained.
“Trading confusion should increase prices in the short term and support US steel shares, but if the addition of demand and ability is low, our view will offset these profits in the medium term. And analyst Andrew Jones wrote on Monday.
Bank of American securities emphasized future headwinds, despite the profits of steel makers from more expensive imports.
“In the long run, the negative side risk of US steel stocks can be seen due to the significant decrease in automobile production of steel steel demand in the United States,” said Analyst Lawson Winder on Monday. I wrote it.
Correction: Carlos de Alba is an analyst for Morgan Stanley. The previous version made a mistake in his name spelling.
