Biden Administration Targets China's Unfair Trade Practices in Steel, Shipbuilding
President Biden's Administration Targets China's Unfair Trade Practices
President Biden's administration has taken a firm stance against what it perceives as China's unfair trade practices, particularly targeting the steel and shipbuilding industries. By directing the United States Trade Representative (USTR) to potentially triple the tariff rates on Chinese steel and aluminum imports, the administration aims to protect American industries from the adverse effects of these practices. This move is a response to the supply of steel at below-market costs by China, which distorts the global market and undermines competition. The investigation into China's shipbuilding practices further underscores the administration's commitment to fair trade and competition on a global scale.
The significance of American-made steel extends beyond economic interests, touching on aspects of national security and the protection of critical sectors such as commercial shipping and the U.S. Navy. The White House's emphasis on the importance of domestic steel production is part of a broader agenda to shield American workers, consumers, and businesses from the impacts of unfair competition. The administration's consideration of enhancing tariffs under Section 301 of the Trade Act reflects a strategic approach to addressing the challenges posed by artificially low-priced Chinese steel and aluminum, which are also associated with higher carbon emissions.
For companies within the U.S. steel industry, such as "X":NYSE, the administration's actions could have significant implications. The recent financials of "X" reveal a challenging environment, with a decrease in revenue growth by approximately 6.48% and a sharp decline in gross profit growth by about 50.59%. The substantial decrease in net income growth by approximately 126.76% and the decline in operating income growth by around 183.39% highlight the pressures faced by the industry. Despite these challenges, the slight increase in asset growth by roughly 0.27% and a marginal increase in book value per share growth by approximately 0.38% suggest some resilience within the company.
The Biden administration's proactive measures, including the construction of six clean iron and steel projects across key regions in the U.S., aim to bolster the competitiveness of the domestic steel industry. Investments such as the $75 million in a high-silicon grain-oriented electrical steel plant in Lyndora, Pennsylvania, and up to $500 million for the Cleveland-Cliffs plant in Middletown, Ohio, are indicative of a strategic effort to promote sustainable growth and innovation within the sector. These initiatives, coupled with the administration's broader trade and investment agenda, are designed to protect and promote American industries in the face of international trade challenges, offering a glimmer of hope for companies like "X" navigating through turbulent times.
US Trade Representative Katherine Tai's recent comments on "Bloomberg Surveillance" about China's "nonmarket practices" and their impact on the U.S. steel and aluminum sectors further highlight the ongoing tensions between the U.S. and China over trade practices. As the administration continues to address these issues, the steel industry, including companies like "X", may find new opportunities for growth and stability in a more protected and fair trade environment.
| Symbol | Price | %chg |
|---|---|---|
| 005490.KS | 295500 | 0 |
| KRAS.JK | 260 | 0 |
| 004020.KS | 33150 | 0 |
| 5401.T | 2985 | 0 |
United States Steel (NYSE:X) Quarterly Earnings Preview
- United States Steel Corporation (NYSE:X) is set to release its quarterly earnings on January 30, 2025, with analysts estimating an EPS of $0.20 and projected revenue of $3.64 billion.
- The company is expected to surpass the Zacks Consensus Estimate of a quarterly loss of $0.25 per share, potentially impacting the stock's price positively.
- Key financial ratios such as the P/E ratio of 20.81, price-to-sales ratio of 0.50, and a current ratio of 1.67 provide insights into X's financial health and market position.
United States Steel Corporation (NYSE:X) is a significant player in the steel industry, competing with giants like Nucor and ArcelorMittal. As the company approaches its quarterly earnings release on January 30, 2025, Wall Street analysts have set their expectations for an earnings per share (EPS) of $0.20 and a projected revenue of $3.64 billion.
Despite the anticipation of a year-over-year decline in earnings and lower revenues for the quarter ending December 2024, X is expected to outperform the Zacks Consensus Estimate, which predicts a quarterly loss of $0.25 per share. Surpassing these estimates could lead to a positive short-term impact on the stock's price, whereas underperformance might result in a decline.
The management's discussion during the earnings call will play a vital role in assessing the sustainability of any immediate price changes and setting future earnings expectations. X's financial metrics, including a P/E ratio of approximately 20.81, a price-to-sales ratio of about 0.50, and an enterprise value to sales ratio of around 0.66, highlight the market's valuation of its earnings and overall financial health. Additionally, the enterprise value to operating cash flow ratio of approximately 9.75 and an earnings yield of about 4.81% offer insights into the company's valuation in relation to its cash flow and earnings generated per dollar invested, respectively.
The debt-to-equity ratio stands at approximately 0.37, indicating the proportion of the company's financing that comes from debt compared to shareholders' equity. The current ratio of about 1.67 suggests the company's capability to cover its short-term liabilities with its short-term assets, further providing a comprehensive view of X's financial health and market position.
United States Steel (NYSE:X) Quarterly Earnings Preview
- United States Steel Corporation (NYSE:X) is set to release its quarterly earnings on January 30, 2025, with analysts estimating an EPS of $0.20 and projected revenue of $3.64 billion.
- The company is expected to surpass the Zacks Consensus Estimate of a quarterly loss of $0.25 per share, potentially impacting the stock's price positively.
- Key financial ratios such as the P/E ratio of 20.81, price-to-sales ratio of 0.50, and a current ratio of 1.67 provide insights into X's financial health and market position.
United States Steel Corporation (NYSE:X) is a significant player in the steel industry, competing with giants like Nucor and ArcelorMittal. As the company approaches its quarterly earnings release on January 30, 2025, Wall Street analysts have set their expectations for an earnings per share (EPS) of $0.20 and a projected revenue of $3.64 billion.
Despite the anticipation of a year-over-year decline in earnings and lower revenues for the quarter ending December 2024, X is expected to outperform the Zacks Consensus Estimate, which predicts a quarterly loss of $0.25 per share. Surpassing these estimates could lead to a positive short-term impact on the stock's price, whereas underperformance might result in a decline.
The management's discussion during the earnings call will play a vital role in assessing the sustainability of any immediate price changes and setting future earnings expectations. X's financial metrics, including a P/E ratio of approximately 20.81, a price-to-sales ratio of about 0.50, and an enterprise value to sales ratio of around 0.66, highlight the market's valuation of its earnings and overall financial health. Additionally, the enterprise value to operating cash flow ratio of approximately 9.75 and an earnings yield of about 4.81% offer insights into the company's valuation in relation to its cash flow and earnings generated per dollar invested, respectively.
The debt-to-equity ratio stands at approximately 0.37, indicating the proportion of the company's financing that comes from debt compared to shareholders' equity. The current ratio of about 1.67 suggests the company's capability to cover its short-term liabilities with its short-term assets, further providing a comprehensive view of X's financial health and market position.
U.S. Steel (NYSE:X) Faces Challenges Amid Market Volatility
- Carlos De Alba from Morgan Stanley set a price target of $39 for U.S. Steel (NYSE:X), suggesting a potential increase of 27.04%.
- The stock is showing technical bearish signals with a current price of $30.66, indicating potential downward pressure.
- A major acquisition deal for U.S. Steel has been blocked, adding to the company's challenges and impacting its future stock performance.
U.S. Steel (NYSE:X) is a major player in the steel industry, known for producing and selling steel products. The company faces competition from other steel manufacturers like Nucor and ArcelorMittal. On January 3, 2025, Carlos De Alba from Morgan Stanley set a price target of $39 for U.S. Steel (NYSE:X), while the stock was priced at $30.70, suggesting a potential increase of 27.04%.
Currently, U.S. Steel is encountering significant challenges. The stock is showing technical bearish signals, which means there might be downward pressure on the stock price. This is concerning for investors as it suggests the stock might continue to decrease in value. The stock is priced at $30.66, reflecting a decrease of 5.95% with a change of $1.94.
Adding to the company's difficulties, a major acquisition deal has been blocked by President Biden. This roadblock could have substantial implications for the future of U.S. Steel's stock. The stock reached a low of $29.87 and a high of $31.39 during the trading day, indicating volatility in its price.
Over the past year, U.S. Steel's stock has seen a high of $48.85 and a low of $26.92. This range shows the fluctuations the stock has experienced, which can be attributed to various market factors. The company's market capitalization is approximately $6.9 billion, reflecting its size in the industry.
The trading volume for the day is 23,675,848 shares, indicating active trading and interest in the stock. Despite the challenges, the stock remains listed on the NYSE, continuing to attract attention from investors and analysts alike.
U.S. Steel (NYSE:X) Faces Challenges Amid Market Volatility
- Carlos De Alba from Morgan Stanley set a price target of $39 for U.S. Steel (NYSE:X), suggesting a potential increase of 27.04%.
- The stock is showing technical bearish signals with a current price of $30.66, indicating potential downward pressure.
- A major acquisition deal for U.S. Steel has been blocked, adding to the company's challenges and impacting its future stock performance.
U.S. Steel (NYSE:X) is a major player in the steel industry, known for producing and selling steel products. The company faces competition from other steel manufacturers like Nucor and ArcelorMittal. On January 3, 2025, Carlos De Alba from Morgan Stanley set a price target of $39 for U.S. Steel (NYSE:X), while the stock was priced at $30.70, suggesting a potential increase of 27.04%.
Currently, U.S. Steel is encountering significant challenges. The stock is showing technical bearish signals, which means there might be downward pressure on the stock price. This is concerning for investors as it suggests the stock might continue to decrease in value. The stock is priced at $30.66, reflecting a decrease of 5.95% with a change of $1.94.
Adding to the company's difficulties, a major acquisition deal has been blocked by President Biden. This roadblock could have substantial implications for the future of U.S. Steel's stock. The stock reached a low of $29.87 and a high of $31.39 during the trading day, indicating volatility in its price.
Over the past year, U.S. Steel's stock has seen a high of $48.85 and a low of $26.92. This range shows the fluctuations the stock has experienced, which can be attributed to various market factors. The company's market capitalization is approximately $6.9 billion, reflecting its size in the industry.
The trading volume for the day is 23,675,848 shares, indicating active trading and interest in the stock. Despite the challenges, the stock remains listed on the NYSE, continuing to attract attention from investors and analysts alike.
GLJ Research Upgrades US Steel, Shares Gain 4%
US Steel (NYSE:X) shares gained more than 4% intra-day on Monday after GLJ Research analysts upgraded the company to Buy from Sell, citing a potential upside in the stock’s valuation despite recent declines. The company's shares have dropped by 37% since reaching a high in December 2023, while the broader market has gained around 14%. Much of this drop is attributed to news that President Joe Biden may block Nippon Steel's acquisition of US Steel.
However, the analysts believe the market's pessimism on US Steel has been overdone. Using a Sum-of-the-Parts (SOTP) analysis, the analyst estimates a 23.3% potential upside from the company's current price. The analysis factors in peer-industry multiples, expected 2025 EBITDA for US Steel's segments, and the ramp-up of Big River 2, which is anticipated to significantly boost the company’s Mini Mill revenue.
According to the analysts, US Steel's current price reflects its trailing 12-month EBITDA but doesn't fully account for the ramp-up of Big River 2, which is expected to nearly double Mini Mill revenue in 2025. The analysts argue that investors are willing to pay high valuations for domestic steel assets, which further supports the buy rating.
GLJ Research Upgrades US Steel, Shares Gain 4%
US Steel (NYSE:X) shares gained more than 4% intra-day on Monday after GLJ Research analysts upgraded the company to Buy from Sell, citing a potential upside in the stock’s valuation despite recent declines. The company's shares have dropped by 37% since reaching a high in December 2023, while the broader market has gained around 14%. Much of this drop is attributed to news that President Joe Biden may block Nippon Steel's acquisition of US Steel.
However, the analysts believe the market's pessimism on US Steel has been overdone. Using a Sum-of-the-Parts (SOTP) analysis, the analyst estimates a 23.3% potential upside from the company's current price. The analysis factors in peer-industry multiples, expected 2025 EBITDA for US Steel's segments, and the ramp-up of Big River 2, which is anticipated to significantly boost the company’s Mini Mill revenue.
According to the analysts, US Steel's current price reflects its trailing 12-month EBITDA but doesn't fully account for the ramp-up of Big River 2, which is expected to nearly double Mini Mill revenue in 2025. The analysts argue that investors are willing to pay high valuations for domestic steel assets, which further supports the buy rating.
