Tariffs an 'incremental negative' for U.S. steel companies, says UBS
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 03 2025
0mins
Impact of Tariffs on U.S. Steel Companies: President Trump's new tariffs, including a 10% tariff for all countries and additional tariffs affecting 185 countries, are seen as a negative factor for U.S. steel companies due to concerns over demand destruction, according to UBS analyst Andrew Jones.
Market Ratings and Production Concerns: UBS maintains Buy ratings on Steel Dynamics and Nucor while issuing a Sell rating on Posco; the firm notes that the lack of new auto tariffs beyond the previously announced 25% could lead to a reduction in North American steel production by 1.5 million units.
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Analyst Views on STLD
Wall Street analysts forecast STLD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for STLD is 182.30 USD with a low forecast of 165.00 USD and a high forecast of 194.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
10 Analyst Rating
6 Buy
4 Hold
0 Sell
Moderate Buy
Current: 174.380
Low
165.00
Averages
182.30
High
194.00
Current: 174.380
Low
165.00
Averages
182.30
High
194.00
About STLD
Steel Dynamics, Inc. is an industrial metals solutions company. Its Steel Operations segment consists of its EAF steel mills, producing steel from ferrous scrap and scrap substitutes, utilizing continuous casting and automated rolling mills, and numerous steel coating, processing lines and warehouse operations. Its Metals Recycling Operations segment includes its OmniSource ferrous and nonferrous processing, transportation, marketing, brokerage, and scrap management services primarily throughout the United States and in Central and Northern Mexico. Its Steel Fabrication Operations segment includes its New Millennium Building Systems’ joist and deck plants located throughout the United States, and in Northern Mexico. Its Aluminum Operations segment includes the recycled aluminum flat rolled products mill being constructed in Columbus, Mississippi, and two satellite recycled aluminum slab centers in the southwest United States and Central Mexico.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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