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U.S. steel stocks jump after Kobe Steel crisis deepens


Reuters

Oct 13 (Reuters) - Shares of U.S. steelmakers jumped on Friday after Japan'sKobe Steel Ltd said the firm's data cheating may have spread beyond the country to affect about 500 companies, sparking global supply chain concerns.

Shares of AK Steel Holding Corp, U.S. Steel Corp, Nucor Corp, Steel Dynamics Inc were up 2 percent to 6 percent in morning trading.

"The Kobe Steel crisis is definitely helping other steel producers," Wunderlich Securities chief market strategist Art Hogan said.

The scale of the misconduct at Japan's third-largest steelmaker weakened its shares by 9 percent, wiping about $1.8 billion off its market value this week.

The firm's chief executive Hiroya Kawasaki was ordered by the government to report on how the misconduct occurred and address safety concerns.

Additionally, Chinese finished steel exports in September dropped 42 percent year-over-year representing the lowest level since February 2014, KeyBanc Capital Markets analyst Philip Gibbs wrote in a note.

Gibbs viewed declining Chinese steel export momentum as encouraging for global supply-side dynamics.

Brazilian steemakers, including Usiminas and CSN, rose more than 5 percent.




This article appears in: Stocks , Technology , Commodities


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