TheStreet TV's anchor Rhonda Schaffler notes that shares of U.S. steel are receiving a boost after the government imposed tariffs on steel imports.
NEW YORK (TheStreet) -- United States Steel (X - Get Report) stock is skyrocketing 20.46% to $11.07 on heavy trading volume this afternoon after the Department of Commerce imposed tariffs of up to 266% on cold-rolled steel imports.
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The U.S. government announced preliminary anti-dumping duties of 266% for China, 71% for Japan, 39% for Brazil, between 6% and 31% for the U.K., between 13% and 17% for Russia, 7% for India and between 2% and 7% for South Korea, JPMorgan (JPM) wrote in a note today.
The tariffs are meant to combat steel prices that were deemed unfairly low by the U.S. government.
"We think the duties came in above expectations and see this as a near-term positive for pricing," Anthony Rizzuto, an analyst at Cowen and Co., said in a report today, according to Bloomberg.
The U.S. government also penalized foreign steel producers in December, as it levied taxes of 227% on imports from China. The total tariff for Chinese cold-rolled steel imports is now 493%.
Cold-rolled steel declined by 9.4% to 2.43 million tons during 2015, Bloomberg adds.
About 24.57 million shares of U.S. Steel have been traded so far today, well above the company's average trading volume of roughly 10.54 million shares per day.
Separately, TheStreet Ratings team rates the stock as a "sell" with a ratings score of D.
U.S. Steel's weaknesses include its deteriorating net income, generally high debt management risk, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.
You can view the full analysis from the report here: X
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.
