Dj Steelmakers Hike Prices Ahead Of Tariffs

Steel prices are expected to improve this year, supported by the Trump administration's pledge to impose tariffs on steel imports along with modest steel demand growth, Morgan Stanley said in a note to clients Monday.

The higher prices will be a result of expected tariffs that will "help further reduce steel imports" and lead to "an improvement of lead times that are currently near historical lows," the investment firm said.

"Bottom-up demand indicates steel consumption will grow 1.6% in 2025, driven by expected gains in the construction space, but partially offset [by] continued weakness in the auto market," the investment firm said in the note.

Additionally, prices will likely "improve further in 2026 as tariff implications flow through the US economy," according to the note.

Morgan Stanley downgraded US Steel's rating to equal-weight, saying the company's shares are now trading near the firm's standalone valuation of $39 per share.

Morgan Stanley also cut Commercial Metals' price target to $56 from $65, Cleveland-Cliffs' price target to $11 from $13, and Nucor's price target to $154 from $166, while increasing Steel Dynamics' price target to $145 from $131.

United States Steel and Nippon Steel said Monday they have filed their opening brief against former President Joe Biden and officials at the Committee on Foreign Investment in the United States over the decision to block their planned $14.9 billion merger.

The brief, filed in the US Court of Appeals for the District of Columbia Circuit, said Biden's decision was made for "political reasons, not national security." The Committee on Foreign Investment engaged in a "sham review of the transaction so that [Biden] could block it," the companies said.

Briefing is expected to be completed by March 17, with oral argument to follow, the companies said.

By Denny Jacob

Nippon Steel and U.S. Steel jointly filed their opening brief in court against former President Biden and others to invalidate what they said were unlawful actions over the companies' proposed merger.

The companies said the brief, filed in the U.S. Court of Appeals for the District of Columbia Circuit, detailed how Biden made a predetermined decision for political reasons, not national security, that would let him block the deal.

Nippon and U.S. Steel reiterated their belief that the deal will enhance, not threaten, U.S. national security, protect U.S. Steel workers and revitalize jobs in communities that depend on American steel.

The companies in January filed a pair of lawsuits that accused Biden, the president of the steelworkers union and the chief executive of a rival company of conspiring to scuttle their $14.1 billion tie-up.

U.S. Steel's cases come as activist investor Ancora Holdings is waging a proxy battle at the company and wants it to turn the page after its failed marriage with Nippon.

Write to Denny Jacob at denny.jacob@wsj.com