NEW YORK (MarketWatch) – Goldman Sachs analysts cut their view of the steel sector Tuesday, saying prices could stay below $500 a ton through summer due to the U.S. dollar’s recent rise and high inventories.
In another research note Tuesday, Goldman Sachs raised Allegheny Technologies Inc. (ATI: news, chart, profile) to in-line from underperform.
“We expect continuing strong demand and pricing for ATI’s high-performance aerospace metals, and steady results in other metals and stainless steels,” wrote Mazzaferro.
The reduced view of the steel sector should not affect the call on Allegheny, he said, as the company’s product mix avoids carbon steel entirely. Only about 15% of Allegheny’s sales are in commodity stainless, which itself is much stronger than carbon steel, Mazzaferro added.