Goldman Sachs's Latin American Steel Update

Goldman Sachs has published its Latin American Steel update in which GS upgrades their view to Neutral. In a note to clients, Goldman Sachs writes, "We upgrade our LatAm Steel & Mining coverage view to Neutral. We also upgrade Ternium TX to Buy from Neutral and Usiminas to Neutral. We are turning more constructive on steel stocks, in part because we believe international steel prices may have reached a bottom. Steel prices seem unlikely to fall much further from here, considering the outlook for input prices (iron ore and coking coal). In the next six months we expect steel prices to outperform steel inputs price performance, leading to operating margin increase from 1Q2011." TX closed Friday at $34.01.