05-19-2016, 02:04 AM
Analysts expect steel companies to report higher EBITDA in 2Q16. The biggest rise is expected for U.S. Steel Corporation (X), which is expected to post EBITDA of $103 million in 2Q16 compared to EBITDA of -$107 million in 1Q16. Along with spot sales, some of U.S. Steel’s contract sales will also benefit from higher spot prices. 23% of U.S. Steel’s flat-rolled shipments have a quarterly reset, while 13% have a monthly reset. As these sales are reset to higher prices, U.S. Steel’s EBITDA could improve significantly in 2Q16 and beyond.
Why Analysts Think Steel Companies' Profits Could Rise in 2Q16 - Market Realist