U.S. Steel (X) to Launch New Steel for Electric Vehicles
United States Steel Corporation X has announced that production of its new electrical steel product, InduX, will begin in the summer of 2023 at its Big River Steel facility with the commissioning of its new non-grain oriented (NGO) electrical steel line. The company is introducing InduX for the rapidly growing American electric vehicle market.
InduX is a very wide, ultra-thin and light-weight electrical steel, possessing all the magnetic properties necessary for electric vehicles (EV), generators and transformers. In an EV, the better the magnetic properties, the better the motor efficiency, resulting in more vehicle mileage.
U. S. Steel is significantly investing in American jobs and enhancing the resiliency of the domestic supply chain by producing InduX steel in the United States.
InduX steel will be produced on Big River Steel's new NGO electrical steel line in Osceola, AR. The NGO line is currently under construction and is expected to manufacture up to 200,000 tons of InduX steel per year on completion. The NGO line's total expected capital expenditures of around $450 million are funded by cash generated by Big River Steel.
U.S. Steel shares are down 34.5% over the past year compared with a 10.8% decline recorded by its industry.
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The company recently said that it remains bullish toward delivering strong results in 2023, as evidenced by its flat-rolled segment order book, which reflects improved demand. U.S. Steel's Mini Mill segment is additionally experiencing strong order books. This segment's cost structures are expected to improve as it is likely to offset the elevated prices for metallics purchased at the start of the Russia-Ukraine war.
As market conditions improved, the company saw a positive EBITDA return in Europe for February. Its tubular segment is also expected to deliver sequential EBITDA growth in the first quarter due to healthy pipe prices and order entry. In the European segment, the company saw improved market prices as a result of increased demand and decreased importing activity. Lower energy costs are expected to contribute to segment performance in the first quarter.
United States Steel Corporation Price and Consensus
United States Steel Corporation price-consensus-chart | United States Steel Corporation Quote
Zacks Rank & Other Key Picks
U.S. Steel currently carries a Zacks Rank #2 (Buy).
Other top-ranked stocks to consider in the Basic Materials space include Olympic Steel ZEUS, Steel Dynamics STLD and Yamana Gold AUY.
Olympic Steel currently sports a Zacks Rank #1 (Strong Buy). ZEUS’ earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 26.2% on average. ZEUS has rallied around 39.8% in a year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Steel Dynamics currently sports a Zacks Rank #1. STLD’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 11.3% on average. STLD has rallied around 21.2% in a year.
Yamana Gold currently carries a Zacks Rank #2. AUY’s earnings beat the Zacks Consensus Estimate in each of the last four quarters. It has a trailing four-quarter earnings surprise of roughly 22.5% on average. AUY has gained around 3%% in a year.
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