Steel Stocks Could Benefit as Harvey Drives Prices Higher
sees the effects as a "relative tactical positive" for steel companies, including U.S. Steel X and AK Steel AKS .
Giovanni Bruno Follow Aug 29, 2017 2:19 PM EDT
Get TheStreet Quant Ratings' exclusive 5-page report for (X) - FREE.
Pause
Mute
Loaded: 0%Progress: 0%
Remaining Time -6:37
Fullscreen
Jim Cramer on North Korea, Hurricane Harvey, Best Buy, Finish LIne, Amazon, Whole Foods, Hain Celestial and Apple
U.S. ferrous metals including steel could receive a boost in prices from Tropical Storm Harvey as Houston, decimated by the storm, handles between 30% to 35% of U.S. steel imports, KeyBanc analyst Philip Gibbs noted.
The storm could also cause delays in both imports and exports of steel, and Gibbs sees the effects as a "relative tactical positive" for steel companies including U.S. Steel ( X) and AK Steel ( AKS) .
Gibbs contends that scrap prices in the U.S. will increase $15 to $30 per long ton in September, to make up for an uptick in recent export pricing. But prices could increase further because of Harvey's impacts.
Shares of U.S. Steel were climbing over 3%, while shares of AK Steel were rising over 2% in afternoon trading on Tuesday.