Commodities & Metals
U.S. Prevails in Steel Trade Case with China
Published:
Last Updated:
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
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.