Cleveland Cliffs Inc (CLF)

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U.S. Steel, AK Steel surge on tariff ruling; Axiom's Johnson pooh-poohs news

Dec. 6, 2017 11:39 AM ET|About: AK Steel Holding Corp (AKS)|By: Carl Surran, SA News Editor

Steel names including U.S. Steel (X +6.4%) and AK Steel (AKS +5.5%) enjoy hefty gains following the Commerce Department's move to impose import duties on steel from Vietnam that originated in China.

While the market is rewarding the shares today, Axiom Capital's Gordon Johnson maintains the DoC's decision is "virtually irrelevant in terms of supply/demand."

Johnson says imports of cold rolled coil and hot-dip galvanizing steel have "virtually collapsed" since November of last year.

Vietnam suppliers say their product does not include Chinese components, and U.S. importers have continued to buy their steel, meaning that Johnson expects about half of the current imported Vietnamese steel gets banned incrementally.

Also: NUE +1.2%, STLD +1.3%, CMC +2.4%, MT +1.9%, CLF +1.3%, WOR +0.4%, RS +0.8%, SLX +0.8%.
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