Reports of an expected 10 percent increase in steel demand in the United States this year sent some steel company stocks higher Thursday, the same day AK Steel announced a price increase.
West Chester-based AK Steel (NYSE: AKS) said it is hiking current spot market base prices for all carbon flat-rolled steel products, effective immediately with new orders. The company, the largest in the Dayton region, said base prices for carbon flat-rolled products will increase by $50 per ton.
This week, Arcelor Mittal (NYSE: MT), the world's largest steelmaker, said it expected a 10 percent increase in the U.S. demand for steel this year, with demand in China and Europe climbing up to 7 percent.
Stock prices got a boost on the news, with Arcelor shares climbing 1.3 percent to $38.09, AK Steel shares increasing 1.2 percent to $15.71, United States Steel Corp. (NYSE: X) jumping 1 percent to $57.83 and Nucor Corp. (NYSE: NUE) climbing half-a-percent to $47.29 per share in trading on Wall Street Thursday.
President Barack Obama reached out to the business community this past week, and has discussed spending $50 billion to improve infrastructure in the country as one of several new initiatives. Any effort to boost construction likely would help drive further demand for steel.
Despite increased demand that has boosted revenue for some steelmakers, profit has lagged. Last month, AK Steel reported a fourth-quarter and full-year 2010 loss, and Arcelor reported a loss this past week.