Dahlman & Rose Metals & Mining Update

Dahlman Rose has published its Metals & Mining Update today and maintains its ratings on Rio Tinto RIO and AK Steel Holding AKS. RIO maintains its Buy rating and $115 price target. In a note to clients, Dahlman Rose writes, "In the short-term, the global economy is still experiencing jittery market conditions, and that there are serious macroeconomic issues that need to be addressed. Despite these conditions, markets have been relatively benign for Rio Tinto, mostly for bulk commodities. The company expects continued volatility in 2011 in commodity prices." AKS maintains its Hold rating. Dahlman Rose writes, "Among AK Steel's major markets, the company sees improving trends in the auto and appliance markets for 2011. Further, since service center inventories are very low, small upticks in demand should push prices higher."