Core Insights - The global silicon steel industry is experiencing significant growth, driven by increasing demand in the automotive and power sectors, particularly for electric vehicles and transformers [11]. Industry Development History - The silicon steel industry began developing in the late 19th century, with a shift from hot-rolled to cold-rolled oriented silicon steel initiated by the American Armco Steel Company in the early 1940s [1]. - By the 1960s to late 1980s, hot-rolled electrical steel was phased out in favor of cold-rolled oriented and non-oriented silicon steel, with advancements in non-oriented silicon steel technology [2]. Market Size and Growth - The global silicon steel market was valued at $30.7 billion in 2023, with a projected growth rate of 5.6%, leading to an estimated market size of approximately $32.4 billion in 2024 [4]. - The industry is characterized by high competition and concentration, with Asia expected to account for over 50% of the global market share [4]. Regional Development Patterns - China leads the oriented silicon steel market with a production capacity share of 56%, followed by Japan (11%) and the USA (7%) [6]. - In the non-oriented silicon steel market, China holds a dominant position with a 67% share, while other Asian countries collectively account for 17% and Europe for 15% [8]. Future Market Outlook - The silicon steel market is anticipated to maintain a growth trend, with a projected compound annual growth rate of 5%, potentially reaching a market size of $43.4 billion by 2030 [11].

Trade Tensions and Market Impact - President Trump accused China of violating tariff agreements, leading to a decision to double steel tariffs from 25% to 50% [1] - Cleveland-Cliffs saw a significant stock surge of +24% following the tariff announcement [2] - Major indexes like the Dow, Nasdaq, S&P 500, and Russell 2000 experienced declines, with the S&P 500 down -20 points [2] Labor Market Insights - The upcoming week is designated as Jobs Week, with key reports including Job Openings and Labor Turnover Survey (JOLTS) and the U.S. Employment Report from the Bureau of Labor Statistics (BLS) [3][4] - Expectations for job gains are set at +112K for ADP and +125K for BLS, with potential narratives of labor market loosening if results show notable weakness [4] - The U.S. labor force has been underestimated, with a current unemployment rate expected to remain low at 4.2% despite recent increases [6] Company Earnings Reports - Campbell's Company reported fiscal Q3 earnings of 73 cents per share, exceeding expectations by +12% but slightly below the previous year's quarter [7][8] - Revenues for Campbell's reached $2.48 billion, surpassing expectations by +1.55% and showing growth from $2.37 billion year-over-year [8] Economic Indicators - Anticipation for S&P Manufacturing PMI and ISM Manufacturing reports, with S&P expected at +52.3 and ISM projected to decrease to +48.5 [9] - Construction Spending for April is expected to show a positive change of +0.2% after a -0.5% decline in March, following a trend of negative spending in recent months [10]

Asia Pacific Equity Research 28 May 2025 This material is neither intended to be distributed to Mainland China investors nor to provide securities investment consultancy services within the territory of Mainland China. This material or any portion hereof may not be reprinted, sold or redistributed without the written consent of J.P. Morgan. China Basic Materials 2025 Global China Summit and Basic Materials Tour takeaways: What else apart from consensus positive on gold? We hosted a basic materials tour and ...

Group 1 - Steel stocks surged following the announcement of increased tariffs on steel and aluminum from 25% to 50% by the Trump administration, with Cleveland-Cliffs shares rising approximately 26% [1] - Other steel companies also experienced significant stock price increases, with Steel Dynamics and Nucor shares jumping around 11% and 10.5% respectively [1] - The announcement was made during a rally at a U.S. Steel factory, coinciding with the potential union between U.S. Steel and Nippon Steel, which Trump assured would not involve layoffs [2][3] Group 2 - The increase in tariffs is expected to raise the price of U.S.-made steel, benefiting companies like Cleveland-Cliffs, Steel Dynamics, and Nucor, with benchmark steel prices rising from $725 per metric ton to $875 per metric ton since Trump took office [4] - Cleveland-Cliffs has faced challenges, including a failed acquisition attempt of U.S. Steel and a lowered full-year guidance due to higher costs and lower demand perceptions [6][7] - Analysts indicate that Cleveland-Cliffs is more highly leveraged compared to its peers, making its stock more sensitive to fluctuations in steel prices [7] Group 3 - There is uncertainty regarding the permanence of the 50% tariff level, with potential countermeasures from the European Union in response to the U.S. tariff increase [8] - The administration may seek trade deals after a 90-day tariff pause, and if tariffs become an obstacle, there is a possibility of reverting to the previous 25% rate [8] - Investors are advised to consider less-leveraged companies like Nucor and Steel Dynamics for exposure to the steel industry, as Cleveland-Cliffs may be adversely affected if tariffs are reduced [8]

Group 1: Tariff Impact on Metal Stocks - President Trump's announcement to increase tariffs on imported steel and aluminum from 25% to 50% has significantly influenced U.S. metal stocks, strengthening domestic producers by reducing foreign competition and increasing prices [1][2] - Cleveland-Cliffs (NYSE: CLF) stock surged about 33% in pre-market trading following the tariff announcement, while Nucor Corp (NYSE: NUE) shares rose around 13% [2] - United States Steel stock (NYSE:X) increased by 22% over the past week and is up nearly 65% year-to-date [2] Group 2: Cleveland-Cliffs Performance - Cleveland-Cliffs stock has decreased by 66% over the last year and approximately 76% over the past three years, with a 15% revenue decline in the last twelve months [3][4] - The company's price-to-sales (PS) multiple has dropped from 1.1x in 2020 to 0.48x in 2023, currently at 0.2x, indicating potential for upside compared to previous years [4] - For Q1 2025, Cleveland-Cliffs reported revenues of $4.6 billion, up from $4.3 billion in Q4 2024, but incurred a net loss of $483 million, attributed to underutilized assets and low steel prices [5] Group 3: Strategic Responses and Future Outlook - Cleveland-Cliffs plans to temporarily close several facilities and pause capital spending on a transformer facility, expecting to save over $300 million annually [5] - The long-term impact of the tariff increase on metal stocks will depend on the sustainability of the tariffs, global market responses, and domestic production capabilities [6] - Diversification across sectors and stocks is emphasized as vital to mitigate concentration risk, with the Trefis High Quality (HQ) portfolio outperforming major indices with returns exceeding 91% since inception [7]

CANADA - 2025/05/24: In this photo illustration, the United States Steel Corporation (USS) logo is ... More seen displayed on a smartphone screen. (Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images)SOPA Images/LightRocket via Getty ImagesUnited States Steel (NYSE:X) has experienced a stock increase of over 50% so far this year, in contrast to the 1% decline in the S&P 500 Index. The rise in U.S. Steel’s stock price is significantly more pronounced compared to its competitors, incl ...

Core Viewpoint - Nucor's shares have declined approximately 7.9% since the last earnings report, underperforming the S&P 500, raising questions about the potential for continued negative trends or a breakout before the next earnings release [1] Estimates Movement - Estimates for Nucor have trended downward over the past month, indicating a negative shift in expectations [2] VGM Scores - Nucor currently holds a poor Growth Score of F, while its Momentum Score is rated B. The stock has an A grade for value, placing it in the top 20% for this investment strategy. The overall aggregate VGM Score for Nucor is C, which is relevant for investors not focused on a single strategy [3] Outlook - The downward trend in estimates suggests a negative outlook for Nucor, with a Zacks Rank of 3 (Hold), indicating expectations for an in-line return from the stock in the coming months [4]

Core Viewpoint - The acquisition of U.S. Steel by Nippon Steel is moving forward with new terms aimed at securing support from the Trump administration, including U.S. government veto power over key decisions [1][6][12] Group 1: Acquisition Details - Nippon Steel proposed to acquire U.S. Steel for $14.9 billion in 2023, but the deal faced delays due to political opposition, including a block from former President Joe Biden on national security grounds [2] - The Trump administration has initiated a review of the deal and indicated potential support, suggesting that Nippon Steel could invest without full ownership of U.S. Steel [3][4] Group 2: Economic Impact - Trump stated that the partnership would create at least 70,000 jobs and contribute $14 billion to the U.S. economy, with most of the investment expected within the next 14 months [6] - A term sheet proposed to the Committee on Foreign Investment in the United States (CFIUS) includes provisions to prevent production decreases at U.S. Steel facilities for 10 years, addressing national security concerns [12] Group 3: Governance Structure - The deal may include a "golden share" mechanism, allowing the U.S. government to have control over certain operational decisions and board membership, ensuring that U.S. interests are maintained [6][9] - The governance structure will feature a U.S. CEO and a U.S. majority board, with CFIUS approval required for some board members [9][12]

转自：新华财经 活动期间，兴业研究"智囊团"还与河北省生物医药、新能源、钢铁等行业企业以及金融同业进行了深入 交流，在观点的碰撞中，进一步拓宽各方思路，集思广益赋能地方经济发展。兴业银行石家庄分行表 示，未来将继续携手兴业研究，深化"融资+融智"服务模式，为河北高质量发展贡献更多"兴业智慧"和 金融力量。 据了解，兴业研究是兴业银行的重要智库，长期以来持续以一系列专业研究成果为政府和企业科学决策 和战略谋划贡献智慧。作为兴业研究的品牌活动之一，"兴研说·每月星光"积极响应国家区域重大战 略，推出"地方出题+研究答题"的特色服务模式，研究员深度融入业务一线场景，在"接地气"的调研与 实践中发挥研究价值，赋能区域经济发展。（李晓） 编辑：赵鼎 近日，由兴业银行石家庄分行与兴业研究联合主办的"兴业银行助力河北高质量发展暨2025年'兴研说· 每月星光'走进河北"活动在石家庄举办。活动围绕京津冀协同发展国家战略，紧扣河北区域经济特色， 设置了宏观经济、金融市场、科技金融、生物医药、新能源、钢铁行业等多个专题板块。来自兴业研究 的10名研究员分享最新研究成果、交流行业经验，为河北企业和城市高质量发展建言献策，贡献"兴业 ...

Core Insights - Nucor Corporation (NUE) and Steel Dynamics, Inc. (STLD) are leading steel producers in the U.S., crucial for the domestic steel industry and relevant for investors amid rebounding steel prices [1] - U.S. steel prices fell sharply in 2024 but have recently increased due to tariffs and improving demand, benefiting domestic steelmakers [2][3] Nucor Corporation (NUE) - Nucor is the largest steel producer in North America, investing $6.5 billion in eight major growth projects through 2027 to enhance production capacity [5] - The company has made strategic acquisitions, including Southwest Data Products and Rytec Corporation, to expand its product portfolio and create cross-selling opportunities [6] - Nucor has a strong balance sheet with $4 billion in liquidity and returned $2.7 billion to shareholders last year, maintaining a 52-year history of dividend increases [7] - The current dividend yield is 2% with a payout ratio of 36% and a five-year annualized dividend growth rate of 7.9% [8] - Nucor faces demand weakness in markets like heavy equipment, which accounted for 28% of its total shipments in 2024 [8][9] Steel Dynamics, Inc. (STLD) - Steel Dynamics focuses on customer needs and market diversification, with ongoing projects to enhance capacity and profitability [10] - The company is ramping up operations at a new electric arc furnace mill in Sinton, TX, expected to significantly contribute to revenues [11] - STLD generated $1.8 billion in cash flow from operations in 2024 and has $2.6 billion in liquidity, ensuring it can meet debt obligations [13] - The company raised its quarterly dividend by 9% to 50 cents per share, with a dividend yield of 1.6% and a payout ratio of 26% [14] - Automotive market slowdowns have impacted STLD, with significant declines in North American automotive production affecting steel consumption [15] Price Performance and Valuation - NUE stock has decreased by 35.6% over the past year, while STLD has lost 6.7%, against an industry decline of 36.8% [16] - NUE trades at a forward earnings multiple of 12.05, a 15.6% premium over the industry average of 10.42 [19] - STLD trades at a forward earnings multiple of 11.22, below NUE but above the industry average [22] - The consensus estimate for NUE's 2025 sales suggests a 2.4% increase, while EPS is expected to decline by 11.5% [21] - In contrast, STLD's 2025 sales and EPS estimates imply increases of 3.4% and 3.5%, respectively, with positive trends in EPS estimates [23] Investment Outlook - Both NUE and STLD are positioned to benefit from rising steel prices and trade policies, but STLD is favored due to better valuation and growth prospects [25]