SOURCE: StockCall


November 09, 2010 08:13 ET

Analyst Research on Gerdau S.A. and Steel Dynamics Inc. - Lingering Demand Coupled with Elevated Costs Influenced Q3 2010 Results

JOHANNESBURG, SOUTH AFRICA--(Marketwire - November 9, 2010) - offers investors comprehensive research on the steel & iron industry and has completed analytical research on Gerdau S.A. (NYSE: GGB) and Steel Dynamics Inc. (NASDAQ: STLD). Register with us today at to have free access to these researches. 

The slow economic recovery in North America and Europe has hurt the Steel and Iron sector. Used in diverse areas of the economy, steel demand has fallen as the global economic growth remains depressed, especially in the construction and automotive industries. It's possible that the sector will see large-scale consolidation and restructuring as it works to correctly position itself in the current environment. is an online platform where investors doing their due-diligence on the steel & iron industry can have easy and free access to our analyst research and opinions on Gerdau S.A. and Steel Dynamics Inc.; all investors need to do is register for a complimentary membership at

Low demand has been paired with unusually high raw material costs. Iron ore prices nearly doubled recently forcing many companies to raise prices in an attempt to protect their margins. At the same time, the Chinese government has been working to restructure its own steel industry in an attempt to slow down its economy. Some Chinese steel makers are beginning to sell their products overseas at low prices forcing U.S. steel makers to lower their prices as well. Chinese demand for steel has also been softer than usual lately, further exacerbating the global struggle. Register now at to have free access to our reports on the steel & iron industry.

Global demand is predicted to increase approximately 13% during 2010 and 5% in 2011, however. Globally, steel mills are running at around 70% capacity. The developing world is believed to be consuming 75% of global steel production with China using a gargantuan 45%. Visit to see how companies in this industry have grown over the past years and how they are expected to perform in the future.

Looking at this quarter's earnings releases so far for the industry, Steel Dynamics Inc. released its earnings report back in October with profit sliding by 72.9% as result of a falling selling price of steel negatively impacts margins. Net income for the quarter came in at $18.7 million on a revenue surge of 35% to $1.58 billion. Investors looking for complimentary research on Steel Dynamics Inc. are welcome to sign up at for our new report. 

On the other hand, Gerdau S.A. which recently posted its results saw better-than-expected readings for the quarter even if price of raw materials weighted heavily on profits. Investors looking for free research on Gerdau S.A. are welcome to sign up at for our new report. 

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