Steel Dynamics Trading Volume Drops 64% But Ranks 339th in Volume as UBS Upgrades to Buy

On March 24, 2025, Steel Dynamics (STLD) saw a trading volume of 2.77 million shares, marking a 64.36% decrease from the previous day. The stock ranked 339th in terms of trading volume for the day, with STLD rising by 3.25%.

UBS has upgraded Steel Dynamics to a 'Buy' rating from 'Neutral', maintaining a price target of $149.00. This upgrade comes as the steel sector benefits from increased tariffs on imports from Canada, Mexico, and China, which have bolstered steel prices. UBS analysts expect this trend to continue, supporting a higher steel price environment through 2025.

Despite recent volatility in the steel sector, UBS remains optimistic about the long-term outlook. The firm highlights the potential benefits of trade protections and the impact of Section 232 updates, which have led to higher steel prices. However, UBS also cautions about potential risks in the rebar market due to anticipated supply increases in 2025, which could pressure prices.

UBS analysts forecast a slow recovery in overall steel demand, estimating a 1% decline in 2025. On a macroeconomic front, the firm believes that concerns about a trade war escalation and retaliatory tariffs may have been overstated. UBS projects a recovery in the second half of 2025, supported by a rebound in traditional steel markets and federal stimulus programs aimed at infrastructure development.

The firm also sees potential for domestic steel shipments to benefit from lower imports, estimating a 2.5% increase in domestic shipments due to import relief. This means US steel producers will continue to benefit from the strong pricing environment, even if demand softens, with tariffs protecting against competitive import pricing.