Core Viewpoint - Commercial Metals Company (CMC) is expected to report a year-over-year improvement in revenues and earnings for the first quarter of fiscal 2026, with earnings anticipated to jump 99% year-over-year [1][2][6]. Financial Performance Expectations - The Zacks Consensus Estimate for CMC's fiscal first-quarter revenues is $2 billion, reflecting a 4.6% decrease from the previous year [1]. - The consensus estimate for earnings is $1.55 per share, which has increased by 2.6% over the past 60 days and indicates a year-over-year rise of 98.7% [2][6]. Earnings Surprise History - CMC has had mixed earnings surprises in the past four quarters, beating estimates once, matching once, and missing twice, with an average surprise of -6.3% [5]. Market Conditions and Performance Drivers - The company is facing challenges from a prolonged economic slowdown in the Western world and weaker-than-expected steel demand, particularly in Europe [10]. - Despite these challenges, CMC expects improved steel margins in North America due to price hikes offsetting rising scrap costs [6][12]. Strategic Acquisitions and Synergies - CMC has recently completed two significant acquisitions, positioning itself as a leading player in the Mid-Atlantic and Southeastern regions, with expected annual run-rate synergies of $25-$30 million from these acquisitions by year three [18][19]. Valuation and Stock Performance - CMC shares have increased by 56.1% over the past year, outperforming the industry average of 54.5% and the S&P 500's 21% [13]. - The company is currently trading at a forward price/sales ratio of 0.96, which is lower than the industry average of 1.59 [15]. Investment Considerations - Given the expected strong fiscal first-quarter results driven by improving conditions in Europe and demand in North America, along with favorable valuation and upward earnings estimate revisions, it may be a good time to consider investing in CMC [20].

Core Insights - American Battery Technology Company (ABTC) has been contracted by the U.S. Environmental Protection Agency (EPA) to recycle end-of-life lithium-ion batteries from the largest cleanup operation in EPA history, focusing on safe processing of damaged battery materials [1][2][3] - ABTC has enhanced its Nevada facility to handle large-scale shipments of damaged battery materials, which are being processed under strict EPA oversight [1][2][4] - The project aims to recover valuable critical materials such as lithium, cobalt, nickel, aluminum, steel, and copper, contributing to a closed-loop U.S. critical mineral manufacturing supply chain [3][5] Company Developments - ABTC is one of the few battery recyclers in the Western U.S. approved to handle batteries classified as CERCLA waste, which includes those damaged in large-scale thermal events [2][3] - The estimated value of recycled products generated from processing all battery materials from the cleanup site is approximately $30 million at current market prices [4] - The company is committed to a circular supply chain for battery metals and is focused on innovating technologies to support the electrification transition and sustainable energy future [7][8] Industry Context - The cleanup operation underscores the increasing need for specialized battery recycling capabilities as electric vehicles, grid storage systems, and consumer electronics continue to proliferate [5] - The collaboration between industry leaders and regulators is establishing safety and materials management standards for future large-scale battery facilities [5] - The project aligns with national efforts to enhance domestic critical mineral recycling infrastructure, addressing challenges in managing damaged lithium-ion batteries [3][5]

The tariffs Donald Trump has imposed on America’s aluminium, copper and steel imports have created vast arbitrage opportunities that metal traders are busy exploiting https://t.co/jfAy90qTVa ...

Core Viewpoint - The European Union has announced a significant increase in steel tariffs and a reduction in import quotas, which has raised concerns in the U.K. steel industry and among European car manufacturers [2][4][14]. Group 1: EU Tariff Changes - The EU plans to reduce tariff-free quotas on imported steel by 47% compared to 2024 quotas and increase tariffs from 25% to 50% on excess imports [2]. - These measures are intended to provide strong protection for the EU steel industry, safeguard jobs, and support decarbonization efforts [3]. Group 2: Impact on the U.K. Steel Industry - The U.K. steel industry is already facing significant challenges, including closures and job losses, and the new tariffs could exacerbate this crisis [4][6]. - The EU accounts for approximately 80% of U.K. steel exports, making the tariffs a potential threat to access its largest market [7]. Group 3: Reactions from Industry Stakeholders - The U.K. government is urged to leverage its trading relationship with the EU to secure country quotas to avoid disaster for the steel sector [6]. - The European Automobile Manufacturers' Association (ACEA) has expressed concerns that the new measures could negatively impact the domestic car industry, which relies heavily on EU-sourced steel [14]. Group 4: Broader Context - The EU's actions follow similar tariff measures by the U.S. and Canada aimed at protecting their domestic steel industries from cheaper imports, particularly from China [9]. - The EU has indicated a willingness to exempt certain countries, such as Ukraine, from these duties, highlighting the need for a balanced approach [12].

The European Union plans to double the duty on steel imports to 50%, matching the tariffs being levied in the US in an effort to preserve the 27-nation bloc’s heavy industry: Here's your Evening Briefing https://t.co/jYGeWvKgT1 ...

Trade Policy - Expanded steel and aluminum tariffs are just the beginning [1] - New levies are likely for sectors such as semiconductors, heavy trucks, and commercial aircraft [1]

Trade Policy Impact - The logistics industry was surprised by the expansion of steel and aluminum tariffs to over 400 consumer goods containing these metals [1] - Affected consumer goods include items like motorcycles and tableware [1]

Market Trends - Iron ore and steel prices reached a four-month high [1] - China's mega dam plan in Tibet is expected to increase demand for iron ore and steel [1]

Tariffs - The company is announcing tariffs on pharmaceuticals, chips, and other big items [1] - Tariffs of 50% were imposed on steel and aluminum [1] - Lumber tariffs were recently announced [1] - The company is implementing a 50% tariff on copper [1]

Company Overview - Nucor is a large and diversified U.S. steelmaker that operates entirely on electric arc mini-mills, allowing for more flexibility compared to traditional blast-furnace technology [2][4] - The company produces steel and fabricated steel products, including building components and parts for the electrical grid, which helps in generating higher-margin products with sustainable demand [5] Industry Dynamics - The steel industry is cyclical, and Nucor's stock price tends to fluctuate significantly between periods of price increases and declines [6][12] - Currently, Nucor's stock is down over 45% from its early 2024 high, but historically, such declines are not unusual for the company [7][10] Investment Perspective - The recent stock price has seen an increase of around 8% from its April low, suggesting a potential inflection point, although it could also be a temporary price movement [9] - Long-term investment in Nucor should focus on buying during downturns when the market sentiment is negative, as this could present a good buying opportunity [12][13] - Nucor's management consistently reinvests in the business, particularly during downturns, to emerge stronger post-recession [10]