Steel is Strong (NYSE: X), (NYSE: AKS), (NYSE: NUE)

Not only did United States Steel Corporation (NYSE:X) benefit from the upgrade issued by Goldman Sachs, but it appears that AK Steel Holding Corporation (NYSE:AKS) and Nucor Corporation (NYSE:NUE) also received a little bump too.  United States Steel Corporation (NYSE:X) gapped up at the open by $1.50 a share at $44.55, while AK Steel and Nucor followed suit, gapping up +$0.60 a share to $20.15 and +$0.89 a share to $42.70, respectively.

Goldman upgraded United States Steel Corporation (NYSE:X) to a Conviction Buy from the Buy list, making a seemingly strong statement about their position.  "Steel and scrap prices in the U.S have bottomed in our view, Chinese prices are rising, inventories remain low, a weak dollar has brought the U.S close to being a net exporter and we expect better industrial and auto demand in 2010," analysts Sal Tharani and David Stevens wrote in a note.

The Chinese prices on the upswing, steel inventories remaining low and a weak dollar have been deterring steel imports from other countries, giving prices here in the US support.  There is also consideration for strong demand in 2010 coming from automakers and the US industrial sector.  However, if Chinese steel exports increase, it would pressure the local US market for pricing.

Disclosure: No positions