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Commercial Metals Company

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Favorable key markets, growth in the United States and Poland will lead to improved long product steel demand. Steel tariffs should level the field for Commercial Metals against imported rebar and merchant bar products. The company is poised well to leverage its recent investments, most notably the Durant facility. It has outperformed the industry over the past six months. Its estimates have also gone up lately. The pending acquisition of certain U.S. rebar steel mill and fabrication assets from Gerdau S.A will create significant opportunity for cost synergies upon the conclusion. However, increase in debt to fund the acquisition, recent surge in imports in Poland and expected losses in the Americas Fabrication segment remain headwinds.


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