Supply trends are worrisome despite robust demand; narrow-moat producers are the most likely to benefit.
The company is more than a play on traditional steel markets, but higher returns may be difficult to sustain.
The macro outlook is cloudy but we think steel valuations should look appealing to investors with a longer time horizon.
Although initiatives have promise, the economic backdrop gives us pause.
Despite a difficult operating environment, the steel giant shows promise.
ArcelorMittal sees rising prices and shipments in the first quarter for both Europe and North America, with European economic sentiment improved from just a few months ago.
Aluminum demand is still strong, but pricing clouds the outlook for the firm.
China's steel producers are becoming more disciplined, but they still have a major impact on the raw-materials and finished-steel markets, says Steel Dynamics COO Dick Teets.
The focus here is on selling prices and input costs, not demand.
We don't think the firm's third-quarter results suggest an impending deep recession that the market is essentially pricing in.
It emerges as the clear winner in the game of metal substitution.
Improving fundamentals have momentum, but the surge in pricing might not last.
By focusing on high-value, not high-volume products, Sumitomo Metals is attempting to build a sustainable competitive advantage.
Despite bumps along the way, Steel Dynamics' Dick Teets doesn't believe that the steel recovery will run out of steam.
CFO of China Gerui, Edward Meng sees opportunities for his firm to consolidate the high-end cold rolled steel market in China.
The industry is in recovery, but the climb will not be smooth.