U.S. Prevails in Steel Trade Case with China

Commodities & Metals

Published: October 18, 2012 2:16 pm

Last Updated: October 19, 2012 4:54 am

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

The World Trade Organization (WTO) ruled today that the U.S. did not illegally dump a type of specialty steel into the Chinese market beginning in 2010. China imposed 19.5% tariffs on the “grain-oriented electrical steel” made by AK Steel Holding Corp. (NYSE: AKS) and Allegheny Technologies Inc. (NYSE: ATI) and the U.S. filed a trade case in September with the WTO.

Today’s decision upheld a decision announced in June that favored the U.S. argument.

AK Steel reports third quarter results next week and is expected to post an EPS loss of $0.35 on revenue of $1.47 billion. Allegheny also reports earnings next week and the consensus estimate calls for EPS of $0.40 on revenue of $1.31 billion.

Steelmaker Nucor Corp. (NYSE: NUE) reported adjusted EPS of $0.45 today on revenue of $4.8 billion, compared with estimates for EPS of $0.41 on revenue of $4.81. But the company’s outlook was weak, especially in the construction market.

AK Steel has been struggling with low prices and reduced demand for steel. Allegheny, a specialty steelmaker, has a bit more control over its pricing, but expectations for the third quarter are lower than third quarter 2011 results.

Both AK Steel and Allegheny have seen their share prices rise today. AK Steel is up 0.7% at $5.76 in a 52-week range of $4.44 to $10.33. Allegheny is up 1.7% at $33.75 in a 52-week range of $27.61 to $53.00.

Paul Ausick

Want to Retire Early? Start Here ^(Sponsor)

Want retirement to come a few years earlier than you’d planned? Or are you ready to retire now, but want an extra set of eyes on your finances?

Now you can speak with up to 3 financial experts in your area for FREE. By simply clicking here you can begin to match with financial professionals who can help you build your plan to retire early. And the best part? The first conversation with them is free.

Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.

Have questions about retirement or personal finance? Email us at [email protected]!

By emailing your questions to 24/7 Wall St., you agree to have them published anonymously on a673b.bigscoots-temp.com.

By submitting your story, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.