Latest news with #steelmakers
Bloomberg
9 hours ago
- Business
- Bloomberg
Iron Ore Pulls Back From Five-Month High With Supplies in Focus
Iron ore retreated from the highest level since February as major miner Vale SA reported an increase in quarterly production, and investors weighed the outlook for demand in top importer China. Futures fell toward $104 a ton in Singapore, after surging more than 4% over two days as a mega-dam project in Tibet bolstered the demand outlook. Traders are also assessing efforts by Beijing rein in competition among steelmakers, potentially aiding mills' margins and supporting raw-materials prices.
Yahoo
a day ago
- Business
- Yahoo
1 Magnificent Dividend King Down 30% to Buy and Hold Forever
Key Points Nucor is a U.S. steel giant and Dividend King. The company is diversified and has a strong business plan. Its stock is cyclical and out of favor right now. 10 stocks we like better than Nucor › Nucor (NYSE: NUE) is one of the largest steelmakers in North America, but that's not what separates it from the pack. The big story here is the fact that Nucor is a Dividend King. And right now, the stock appears to still be in Wall Street's doghouse, which could be a buying opportunity for investors whose holding period is forever. Here's what you need to know. What does Nucor do? Nucor makes steel, but this is only part of the story. The other piece is that it uses electric arc mini-mills in the process. This technology tends to be more flexible than blast furnaces that make primary steel. Thus, the company can ramp production up and down based on demand more easily. That allows it to support its profit margins through the industry's cycles. The steelmaking cycle is worth considering. Demand and pricing often rise and fall along with economic activity. Given the industrial importance of steel, that makes sense. However, it also means that the business is a bit volatile and the stock is prone to wide price swings. Right now, the stock is down around 30% from the peaks it achieved in 2024. That sounds like a huge decline, but it is actually an improvement from the more than 40% it had been down before a rally. Declines of 40% or more occurred in 2020 and 2022. So essentially, this is really just a normal swing. But that doesn't mean you should ignore the opportunity here. Nucor is a Dividend King Despite the inherent volatility of the steel sector, Nucor has managed to increase its dividend every single year for over 50 consecutive years. A company doesn't achieve Dividend King status by accident; it requires a strong business model that is well executed in both good markets and bad. In fact, management's goal is generally to produce higher highs and higher lows for its business. It does this with a capital investment plan that focuses on upgrading technology; expanding product offerings; and broadening out to include new, higher margin products. As the company's business grows so, too, does its capacity to generate revenue and earnings. And that leads to higher highs and higher lows on the earnings front over time. With roughly $3 billion in capital spending on tap in 2025, more growth seems likely for the business and the dividend. That said, it is important to highlight one thing: The dividend yield is only 1.7%. This isn't a stock you buy because you need income. It is a stock you buy because you want long-term exposure to the steel sector, and you want to get that exposure via the industry's most reliable dividend stock. You buy Nucor when Wall Street is putting it on sale As a cyclical stock, the best time to buy Nucor isn't when investors are enamored with it. The time to step aboard is when the stock is out of favor, which remains the case today. Would it have been better to buy when the stock was down over 40%? Sure, but 30% is still a material drawdown, and if you are intending to own Nucor for the long term, the price remains attractive. The key to the story, however, is that this Dividend King has proved that its business model can survive just about anything the market and the economy throws at it. Should you buy stock in Nucor right now? Before you buy stock in Nucor, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Nucor wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!* Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Reuben Gregg Brewer has positions in Nucor. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. 1 Magnificent Dividend King Down 30% to Buy and Hold Forever was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
5 days ago
- Business
- Reuters
India's JSW Steel says low priced imports a concern after profit beats estimates
July 18 (Reuters) - India's top steelmaker JSW Steel ( opens new tab flagged concerns of cheaper steel imports on Friday after the company beat first-quarter profit estimates. Indian steelmakers have been under pressure from a surge in low-cost shipments primarily from China, prompting production cuts and job concerns across the industry. The government imposed a temporary 12% import tariff, locally known as safeguard duty in April to curb cheap imports. Although domestic steel prices improved quarter-on-quarter, they remained below year-ago levels. "There is a case for the government to consider the safeguard duty favorably, in terms of extension as well as in terms of the overall duty percentage," Jayant Acharya, chief executive of JSW Steel, said. Given that many countries are putting trade barriers, lower-priced imports are coming to India, which is impacting sentiment, Acharya said. He added that some low-priced imports from Russia also require monitoring. Earlier in the day, JSW Steel reported a consolidated net profit of 21.84 billion rupees ($253.52 million) for the three months ended June 30, exceeding analysts' average estimate of 20.39 billion rupees, supported by easing raw material costs. Revenue from operations largely remained flat at 431.47 billion rupees, as weaker year-on-year steel prices offset a 9% rise in sales volumes. JSW's total expenses decreased by 3.3% to 403.25 billion rupees, primarily due to a similar decline in the cost of materials consumed. JSW Steel's shares closed flat ahead of the quarterly results. ($1 = 86.1475 Indian rupees)
News.com.au
14-07-2025
- Business
- News.com.au
‘Big problem': Choice that could decide Australia's economic future
Australia's over reliance on unexpected high iron ore prices to fix the national budget could be coming to an end, with a key choice from China to decide Australia's future. The Prime Minister held a roundtable on Monday with key local mining figures and Chinese steelmakers to spruik the benefit of buying Australian iron ore. Much of Australia's wealth is made off the back of the mining sector, as Australia pockets around $105bn in return for supplying China with around two-thirds of its iron ore needs. In 2024, Australia sold more than $150bn of iron ore around the world. But this relationship is coming under threat as China's huge steel manufacturing sector looks to decarbonise, meaning they could need the higher quality iron ore found in the likes of Brazil and Guinea. AMP chief economist Shane Oliver told NewsWire how damaging any changes to iron exports would be to the national economy depends on the pace of change. 'My take on that is if it occurs gradually over time, then Australia would adjust,' he said. 'If it occurs very quickly in a short space of time then it'd be a big problem.' 'It comes to the broader issue that about 35 per cent of our exports go to China,' Dr Oliver said. Dr Oliver flagged it could be any number of reasons which could impact Australia's iron ore miners, listing supply from other sources, a hit to the Chinese economy, geopolitical issues with the US as potential reasons for slowing this trade. He said while there was fresh interest in the issue in the context of other tensions between the two countries, the problem was nothing Australia hadn't endured before. 'I can understand why people love to talk about it, but it's been around for the last couple of decades and it is an issue,' he said. 'By the same token in a market economy like Australia, the decision of where our exports go is basically, I'd say 90 per cent driven by free markets and companies operating within that.' Despite the looming risks, Australia could remain 'the lucky country' based on two potential replacements to the country's large iron ore intake. 'We had been moving towards services exports, particularly education,' Dr Oliver said. 'That is why we have to be careful here that Australia doesn't shoot itself in the foot by restricting immigration that turns off the education export sector that is a potential replacement. 'I suspect if things had continued as they were we would have found a situation where in the next few years, education would've been our second highest export, ahead of gas and coal and just behind iron ore.' However, Australia is already struggling with a housing crisis and both major parties used the recent election to point to international students as a key reason why rents are skyrocketing. Previous research from the Property Council of Australia suggests just 4 per cent of rentals were taken up by international students, while a further 6 per cent was taken up by domestic students. The other aspect is a boost to the lithium and rare earths sector which is tipped to boom in future years. 'You want to make it easier for companies to develop new industries, with rare earths for example being a potential hedge [to iron ore],' he said, noting Australia had plentiful reserves.
Reuters
24-06-2025
- Business
- Reuters
Australia begins formal sale process for Gupta's Whyalla Steelworks
SYDNEY, June 24 (Reuters) - The Australian government on Tuesday formally opened the sale process for commodity tycoon Sanjeev Gupta's Whyalla Steelworks, which it said has attracted strong interest from global steelmakers looking to expand into low-emission manufacturing. The steel plant in the state of South Australia was placed in administration in February, with its operating company owing tens of millions of dollars to creditors, and forced the state and federal government to come up with an A$1.9 billion ($1.23 billion) bailout package. "Selected prospective buyers have now been granted access to a secure data room - enabling initial due diligence and allowing parties to prepare non-binding indicative offers," Federal Industry Minister Tim Ayres said in a statement. "A range of prospective buyers have already expressed interest in acquiring and transforming the integrated operations." The independent sale process will be led by administrator KordaMentha and sale advisors 333 Capital, Ayres said. Gupta's family conglomerate, GFG Alliance, did not immediately respond to a request seeking comment. In March, GFG said it remained the largest creditor in Whyalla Steelworks at A$536 million ($347 million). The privately held conglomerate has been refinancing its global businesses in steel, aluminium and energy since its backer, supply chain finance firm Greensill, filed for insolvency in March 2021. Another subsidiary, Liberty Steel East Europe, was put into administration late last year. ($1 = 1.5444 Australian dollars)
