From Yahoo Finance: 2025-03-24 12:54:00

UBS analysts upgraded Nucor and Steel Dynamics shares due to higher steel prices from Trump’s tariffs. Some prices have surged nearly 20% since the 25% levy on steel imports. UBS expects prices to remain elevated despite cooling later in the year, offsetting slight demand reduction.

Steel prices have risen since Trump’s 25% tariff on steel and aluminum imports. Nucor has hiked prices eight times in 2025, now charging $930/short ton for hot-rolled coil. UBS predicts eventual price decrease with new capacity but believes prices will hold in the 800’s due to higher costs and import tariffs.

Despite concerns about Trump’s tariffs lifting prices and reducing demand, UBS analysts are optimistic. They expect demand to improve in the second half of 2025, fueled by traditional markets and federal stimulus like the Infrastructure Investment and Jobs Act. Steel stocks have struggled despite price surges, presenting buying opportunities.

UBS analysts maintain a positive outlook on steel stocks, with Nucor and Steel Dynamics showing potential for gains. Despite recent stock declines, UBS sees an attractive opportunity for investors. The firm’s price targets imply significant upside for both companies, with Steel Dynamics potentially rising 21% and Nucor 31%.

Read more: Here’s Why UBS Analysts Are Bullish on American Steel Stocks