Skip to main content

Market Overview

In Case You Didn't Know, Axiom's Gordon Johnson Is Selling Iron Ore And Steel Stocks

In Case You Didn't Know, Axiom's Gordon Johnson Is Selling Iron Ore And Steel Stocks

It may still be too early to consider buying battered steel and iron ore stocks. According to Axiom analyst Gordon Johnson, the global steel market is about to take another downward turn.

Australia’s Port Hedland just set a new record for March iron ore exports at 39.5 Mmt and exports from Brazil in March came in at 29.9 Mmt. Combined, the two largest ore exporters generated 69.9 Mmt of exports last month, up 4.9 percent month-over-month and 3.6 percent year-over-year.

In addition, iron ore inventories at China’s ports were at 97.0 Mmt as of the beginning of April, up 2.3 percent week-over-week.

“From the increase in seaborne supply (& notably in the share of exports to China) + higher China port inventories, we infer evidence that the seasonal rout typically defining 1Q is over & see downward price pressure imminently ahead,” Johnson explains.

Related Link: Oil Prices Jump 6% On Surprise U.S. Drawdown, But World Bank Sees Limited Upside In 2016

U.S. steel imports came in at 2.69Mmt in March, up 30.4 percent month-over-month, a bad sign for U.S. producers looking to raise prices.

Axiom maintains Sell ratings on the following iron ore and steel stocks:

  • Rio Tinto plc (ADR) (NYSE: RIO)
  • Cliffs Natural Resources Inc (NYSE: CLIF)
  • Joy Global Inc. (NYSE: JOY)
  • United States Steel Corporation (NYSE: X)
  • United Rentals, Inc. (NYSE: URI)
  • Caterpillar Inc. (NYSE: CAT)
  • GATX Corporation (NYSE: GMT)
  • Trinity Industries Inc (NYSE: TRN)

Disclosure: the author holds no position in the stocks mentioned.

Latest Ratings for RIO

Mar 2021DZ BankUpgradesHoldBuy
Feb 2021BerenbergInitiates Coverage OnHold
Feb 2021Credit SuisseUpgradesNeutralOutperform

View More Analyst Ratings for RIO
View the Latest Analyst Ratings


Related Articles (CLF + RIO)

View Comments and Join the Discussion!

Posted-In: axiom Gordon JohnsonAnalyst Color Short Ideas Commodities Markets Analyst Ratings Trading Ideas Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at