After spending more than a year at a middle-of-the-road three-star rank, AK Steel
The potential for AK Steel to benefit from an eventual economic turnaround has spurred growing bullish sentiment in CAPS, and the company has recently seen some early signs of an improving market that should positively affect its financials despite higher raw-material costs. While the U.S. construction markets are still showing signs of weakness, automotive sales have shown signs of new life, with automakers such as Ford
Major shifts in the iron ore supply chain should also help AK Steel: The big three iron ore miners that control a majority of the market -- Vale
One JPMorgan analyst expects that domestic steelmakers will be able to more quickly pass on the rising costs to their customers, and AK Steel has already raised its prices on some products more than once this year, partly because of rising materials costs and partly because of increased demand. With the market heating up again, even Moody's recently raised its rating outlook on AK Steel after considering its potential for earnings recovery this year.
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