For commodities companies, macroeconomic factors and the outlook for the underlying commodities are more important stock price factors than company-specific factors. The outlook for US steel prices is optimistic and favorable conditions are expected to persist through the remainder of 2021.

High steel prices are here to stay although they may correct themselves somewhat in the second half of the year, which usually happens due to seasonality. However, there is not expected to be a collapse in prices due to high demand, high commodity prices and low supply chain inventory.

Another aspect to consider is the reduction of competition in the industry. As imports declined after Trump’s Section 232 tariffs, there has been consolidation in the US steel industry. While X acquired Big River Steel, CLF acquired the US assets of AK Steel and ArcelorMittal. Add to that the expected increase in demand for infrastructure investments offered by Biden and we have a good bullish story around the US steel industry.

NUE stock is a story of growth as it increases its capacity. The company has a history of investing in sink cycles and these investments pay off in the ramp-up cycle that the steel industry is currently witnessing. X intends to close some of its older factories to reduce its carbon footprint. X blocked the modernization at his Mon Valley Factory.

If you care about a strong balance sheet, NUE beats most steel producers, not only in the United States but also around the world. He has a top notch credit rating and has maintained them even in the downward cycles. Full of cash, NUE announced a $ 3 billion buyback program, which would reduce its outstanding shares by nearly 10%.

I would say that when it comes to capital allocation, the management of NUE has a better track record compared to X, which has switched between share issues and buybacks. In addition, he changed positions on Fairfield EAF a few times. The last afterthought that X management had concerns Monday. Modernization of the valley.