The steel exchange traded fund (ETF) has been showing strength that’s typical of the metal, after two major players in the industry reported big earnings.
U.S. Steel Corp. (X) gained 14% in trading yesterday after reporting a second-quarter profit that more than doubled, which was its best gain since 2002, reports Eric Martin for Bloomberg. The company is the second-largest U.S.-based steelmaker in terms of market value. Their per-share profit handily beat the average analyst estimate.
U.S. Steel also expects the growth to keep coming in the third quarter. Price increases in the three segments of the company – flat-rolled, European operations and tubular – outpaced the increase in the cost of raw materials. Shipments also hit record levels, according to the Associated Press.
This morning, ArcelorMittal SA (MT.AS) followed up with a similar report that its own profit had more than doubled, reports Aoife White for the Associated Press. The world’s largest steelmaker increased prices to offset higher costs for energy and iron ore.