Morgan Stanley backs Equal Weight on Nucor, sees steel prices under pressure

Morgan Stanley reiterated an Equal Weight rating and $148 price target on Nucor (NUE) after the company increased its minimum HRC price by $50/t to $900/t, according to industry sources. The increase comes on the back of U.S. Steel’s (X) hike announced earlier this week of a similar move in spot prices for flat steel products, the analyst tells investors in a research note. The firm believes other mills are likely to follow U.S. Steel’s steel price hike to stop the decline in HRC, and continues to believe steel prices will remain under pressure in the coming quarters on soft demand.