{"id":10603,"date":"2018-10-24T18:04:50","date_gmt":"2018-10-24T16:04:50","guid":{"rendered":"https:\/\/www.steelavailable.com\/?p=10603"},"modified":"2020-07-19T14:59:59","modified_gmt":"2020-07-19T12:59:59","slug":"why-credit-suisse-downgrades-the-whole-american-steel-sector","status":"publish","type":"post","link":"https:\/\/www.steelavailable.com\/zh\/why-credit-suisse-downgrades-the-whole-american-steel-sector\/","title":{"rendered":"Why Credit Suisse just downgraded the whole American steel sector"},"content":{"rendered":"<p class=\"qtranxs-available-languages-message qtranxs-available-languages-message-zh\">\u5bf9\u4e0d\u8d77\uff0c\u6b64\u5185\u5bb9\u53ea\u9002\u7528\u4e8e<a href=\"https:\/\/www.steelavailable.com\/en\/wp-json\/wp\/v2\/posts\/10603\" class=\"qtranxs-available-language-link qtranxs-available-language-link-en\" title=\"English\">English<\/a>\u3002<\/p><p><\/p>\n<p id=\"585f\" class=\"graf graf--p graf-after--h3\">On Monday October 15th, 2018,\u00a0<a class=\"markup--anchor markup--p-anchor\" href=\"https:\/\/www.reuters.com\/article\/us-credit-suisse-steel\/credit-suisse-downgrades-us-steel-sector-citing-oversupply-idUSKCN1MP1NX\" target=\"_blank\" rel=\"nofollow noopener noreferrer\" data-href=\"https:\/\/www.reuters.com\/article\/us-credit-suisse-steel\/credit-suisse-downgrades-us-steel-sector-citing-oversupply-idUSKCN1MP1NX\">Credit Suisse<\/a>\u00a0downgraded the rating of the entire US steel sector. How come? what\u2019s going on?<\/p>\n<figure id=\"e086\" class=\"graf graf--figure graf-after--p\">\n<div class=\"aspectRatioPlaceholder is-locked\">\n<div class=\"progressiveMedia js-progressiveMedia graf-image is-canvasLoaded is-imageLoaded\" data-image-id=\"1*cAfpvin4nvDto8VoG0Yyew.jpeg\" data-width=\"952\" data-height=\"825\" data-action=\"zoom\" data-action-value=\"1*cAfpvin4nvDto8VoG0Yyew.jpeg\" data-scroll=\"native\">\n<p>&nbsp;<\/p>\n<div style=\"width: 568px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"progressiveMedia-image js-progressiveMedia-image\" src=\"https:\/\/cdn-images-1.medium.com\/max\/1000\/1*cAfpvin4nvDto8VoG0Yyew.jpeg\" alt=\"\" width=\"558\" height=\"484\" data-src=\"https:\/\/cdn-images-1.medium.com\/max\/1000\/1*cAfpvin4nvDto8VoG0Yyew.jpeg\" \/><p class=\"wp-caption-text\">Arcelor Mittal Indiana mill courtesy of\u00a0<a href=\"https:\/\/www.viktormacha.com\/galerie\/arcelormittal-indiana-harbor-indiana\/arcelormittal-indiana-harbor-bof-steel-plant-1977.html\">Viktor\u00a0Macha<\/a><\/p><\/div>\n<\/div>\n<\/div>\n<\/figure>\n<p id=\"cfd2\" class=\"graf graf--p graf-after--figure\">Some of the reasons shared by the company:<\/p>\n<ul>\n<li class=\"graf graf--p graf-after--figure\">Expected steel prices to fall.<\/li>\n<li class=\"graf graf--p graf-after--figure\">Excess steel supply in the American market.<\/li>\n<li class=\"graf graf--p graf-after--figure\">Consequences to impose tariffs on Chinese imports.<\/li>\n<li class=\"graf graf--p graf-after--figure\">Steel production in this country have reached maximums of several years.<\/li>\n<li class=\"graf graf--p graf-after--figure\">American economy still strong but not forever.<\/li>\n<\/ul>\n<p id=\"8298\" class=\"graf graf--p graf-after--blockquote\">Combination of those factors moved the credit agency to reduce its rating from \u201c<em class=\"markup--em markup--p-em\">overweight<\/em>\u201d (recommendation to be included in a investment portfolio believing that will perform better in the future) to a simple \u201c<em class=\"markup--em markup--p-em\">market price<\/em>\u201d (keep the investment in the portfolio without expect fancy improvements).<\/p>\n<p id=\"426f\" class=\"graf graf--p graf-after--p\">Credit Suisse also downgraded the companies: Steel Dynamics, Nucor Corp., and Cleveland Cliffs from positive to \u201c<em class=\"markup--em markup--p-em\">neutral<\/em>\u201d. We can read this as a mild warning for the steel sector. When a rating agency devalues a whole sector, it is a dose of reality. Why?<\/p>\n<p id=\"3bb0\" class=\"graf graf--p graf-after--p\"><strong class=\"markup--strong markup--p-strong\">Section 232 tariffs to Chinese imports are not working<\/strong><\/p>\n<p id=\"8395\" class=\"graf graf--p graf-after--p\">Take a look at this chart:<\/p>\n<figure id=\"1582\" class=\"graf graf--figure graf-after--p\">\n<div class=\"aspectRatioPlaceholder is-locked\">\n<div class=\"progressiveMedia js-progressiveMedia graf-image is-canvasLoaded is-imageLoaded\" data-image-id=\"1*37trONZRUkeQE0nEcAHDiQ.jpeg\" data-width=\"870\" data-height=\"708\" data-action=\"zoom\" data-action-value=\"1*37trONZRUkeQE0nEcAHDiQ.jpeg\" data-scroll=\"native\">\n<p>&nbsp;<\/p>\n<div style=\"width: 564px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"progressiveMedia-image js-progressiveMedia-image\" src=\"https:\/\/cdn-images-1.medium.com\/max\/1000\/1*37trONZRUkeQE0nEcAHDiQ.jpeg\" alt=\"\" width=\"554\" height=\"451\" data-src=\"https:\/\/cdn-images-1.medium.com\/max\/1000\/1*37trONZRUkeQE0nEcAHDiQ.jpeg\" \/><p class=\"wp-caption-text\">via\u00a0<a href=\"https:\/\/twitter.com\/SoberLook\/status\/1051621085656088576\">Soberlook<\/a><\/p><\/div>\n<\/div>\n<\/div>\n<\/figure>\n<p id=\"66bc\" class=\"graf graf--p graf-after--figure\">We have today USA applying safeguard measures. Even with that, China\u2019s trade surplus with the US hits a new record. In other words, all suppliers try to get ahead of the tariffs with any mean. This chart includes all trade between both countries (and the steel on it)<\/p>\n<p id=\"ea07\" class=\"graf graf--p graf-after--p\"><strong class=\"markup--strong markup--p-strong\">Today, Steel prices are not rising.<\/strong><\/p>\n<p id=\"3a2e\" class=\"graf graf--p graf-after--p\">Metal prices are fluctuating all the time. But steel prices are showing a clear flat trend in 2018.<\/p>\n<figure id=\"915f\" class=\"graf graf--figure graf-after--p\">\n<div class=\"aspectRatioPlaceholder is-locked\">\n<div class=\"progressiveMedia js-progressiveMedia graf-image is-canvasLoaded is-imageLoaded\" data-image-id=\"1*MwCPT_RmzrLJ9fW594xT4A.png\" data-width=\"598\" data-height=\"362\" data-scroll=\"native\">\n<div style=\"width: 563px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"progressiveMedia-image js-progressiveMedia-image\" src=\"https:\/\/cdn-images-1.medium.com\/max\/1000\/1*MwCPT_RmzrLJ9fW594xT4A.png\" alt=\"\" width=\"553\" height=\"335\" data-src=\"https:\/\/cdn-images-1.medium.com\/max\/1000\/1*MwCPT_RmzrLJ9fW594xT4A.png\" \/><p class=\"wp-caption-text\">Source: MetalMiner IndX.<\/p><\/div>\n<\/div>\n<\/div>\n<\/figure>\n<p id=\"72ca\" class=\"graf graf--p graf-after--figure\">That is because steel prices in the US have decreased sharply perhaps due historical steel price cyclicality. In the chart we can see steel prices have remained in a sharp uptrend since January 2018. But prices have started to come down slightly, anyway remain higher than last year\u2019s average.<\/p>\n<h3 id=\"475c\" class=\"graf graf--h3 graf-after--p\">Meanwhile in\u00a0Canada<\/h3>\n<figure id=\"ee4e\" class=\"graf graf--figure graf-after--h3\">\n<div class=\"aspectRatioPlaceholder is-locked\">\n<div class=\"progressiveMedia js-progressiveMedia graf-image is-canvasLoaded is-imageLoaded\" data-image-id=\"1*3gj0R_bb35qTqpu_XiN68g.png\" data-width=\"709\" data-height=\"490\" data-is-featured=\"true\" data-action=\"zoom\" data-action-value=\"1*3gj0R_bb35qTqpu_XiN68g.png\" data-scroll=\"native\">\n<div style=\"width: 564px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\"progressiveMedia-image js-progressiveMedia-image\" src=\"https:\/\/cdn-images-1.medium.com\/max\/1000\/1*3gj0R_bb35qTqpu_XiN68g.png\" alt=\"\" width=\"554\" height=\"382\" data-src=\"https:\/\/cdn-images-1.medium.com\/max\/1000\/1*3gj0R_bb35qTqpu_XiN68g.png\" \/><p class=\"wp-caption-text\">AP Agency. Flags and steel coils. Stelco mill, Hamilton.<\/p><\/div>\n<\/div>\n<\/div>\n<\/figure>\n<p class=\"graf graf--p graf-after--figure\">Last week, Canada said it would impose new quotas and tariffs on imports in seven steel categories, in order to avoid a drastic drop in prices. This is a protection to avoid temptations of coming offers from oversupplied third countries seeking new customers.<\/p>\n<p>In the photo we see Canadian flags in front of steel coils. The application of tariff measures by the United States has made the protection of the iron and steel industry, unfortunately,<strong class=\"markup--strong markup--p-strong\">\u00a0a matter of state in many countries<\/strong>.<\/p>\n<p><strong>Written\u00a0by: \u00a0<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-10620 alignleft\" src=\"https:\/\/www.steelavailable.com\/wp-content\/uploads\/2018\/10\/Picture1-300x300.jpg\" alt=\"\" width=\"121\" height=\"121\" \/><\/p>\n<p>&nbsp;<\/p>\n<p><strong>Daniel Romero<\/strong><\/p>\n<p>Sales Manager @<a href=\"http:\/\/www.conecband.com\">Conecband Steel<\/a><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>Published in Spanish language on the\u00a0<a class=\"markup--anchor markup--p-anchor\" href=\"http:\/\/conecband.com\/entrada\/1182\/credit-suisse-rebaja-la-calificacion-del-sector-del-acero-en-eeuu\/\" target=\"_blank\" rel=\"nofollow noopener noreferrer\" data-href=\"http:\/\/conecband.com\/entrada\/1182\/credit-suisse-rebaja-la-calificacion-del-sector-del-acero-en-eeuu\/\">Conecband\u2019s blog<\/a>. Courtesy of the Author.<\/p>\n<p><em>Disclaimer: The content of this article reflects our view and is not a recommendation to buy or sell any asset, and you cannot take as indication of future results. Each buyer must do his own analysis. Although we took all reasonable care in writing this post, it is possible that the information in it is incomplete or incorrect or may differ of what you know. Please remember that the indicated data and our views are subject to change without notice and we have no obligation to update the information contained herein.<\/em><\/p>\n<p>&nbsp;<\/p>","protected":false},"excerpt":{"rendered":"<p>\u5bf9\u4e0d\u8d77\uff0c\u6b64\u5185\u5bb9\u53ea\u9002\u7528\u4e8eEnglish\u3002  [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":10637,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[395],"tags":[753,754,149,752,757,169,168,267,423,755,756,130],"class_list":["post-10603","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-industry-news","tag-american-steel","tag-arcelor-mittal","tag-business","tag-credit-suisse","tag-downgrade","tag-economy","tag-industry","tag-manufacture","tag-manufacturing","tag-steel-price","tag-steel-supply","tag-supply-chain"],"acf":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.steelavailable.com\/zh\/wp-json\/wp\/v2\/posts\/10603","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.steelavailable.com\/zh\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.steelavailable.com\/zh\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.steelavailable.com\/zh\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/www.steelavailable.com\/zh\/wp-json\/wp\/v2\/comments?post=10603"}],"version-history":[{"count":20,"href":"https:\/\/www.steelavailable.com\/zh\/wp-json\/wp\/v2\/posts\/10603\/revisions"}],"predecessor-version":[{"id":11183,"href":"https:\/\/www.steelavailable.com\/zh\/wp-json\/wp\/v2\/posts\/10603\/revisions\/11183"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.steelavailable.com\/zh\/wp-json\/wp\/v2\/media\/10637"}],"wp:attachment":[{"href":"https:\/\/www.steelavailable.com\/zh\/wp-json\/wp\/v2\/media?parent=10603"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.steelavailable.com\/zh\/wp-json\/wp\/v2\/categories?post=10603"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.steelavailable.com\/zh\/wp-json\/wp\/v2\/tags?post=10603"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}