U.S. Steel increasing spot prices for flat steel products, says Morgan Stanley

Morgan Stanley analyst Carlos De Alba reported, citing industry sources, that U.S. Steel has announced a $50/t increase in spot prices for flat steel products, which the firm notes is the first price increase in flats since the start of April. The price hike, which “comes as a surprise,” is believed by the firm to be an attempt from U.S. Steel, which “potentially other mills will follow,” to stop the decline in HRC from $1,175/t in mid-April to a current spot price of $900/t. However, Morgan Stanley continues to believe that steel prices will remain under pressure in the coming quarter and keeps an Equal Weight rating and $25 price target on U.S. Steel shares.