UPDATE 1-U.S. steel stocks jump after Kobe Steel crisis deepens

From Reuters - October 13, 2017

(Reuters) - Shares of U.S. steelmakers jumped on Friday after Japans Kobe Steel Ltd said the firms data cheating may have spread beyond the country to affect about 500 companies, sparking global supply chain concerns.

Shares of AK Steel Holding Corp, U.S. Steel Corp, Nucor Corp, Steel Dynamics Inc were up 2 percent to 6 percent in morning trading.

The Kobe Steel crisis is definitely helping other steel producers, Wunderlich Securities chief market strategist Art Hogan said.

If you think of any other competitive industry in the commodity business, if one of the major players were knocked out its looked at as potential for supply disruption which benefits the other players, Hogan added.

The scale of the misconduct at Japans third-largest steelmaker weakened its shares by 9 percent, wiping about $1.8 billion off its market value this week.


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