Tuesday, May 4, 2010

US Steel (NYSE:X), AK Steel Holding (NYSE:AKS), Southern Copper (NYSE:SCCO) Indicate Slow Economy

US Steel (NYSE:X), AK Steel Holding (NYSE:AKS) and Southern Copper (NYSE:SCCO) have been getting clobbered lately, and that's a telltale sign the economy is grinding to a halt with little demand for metal products.

This coincides with the fact that the construction industry, and other large industries using metals, are projected to be down in demand, with the possible exception of the auto industry, although I wouldn't count on much there, as even if demand does increase, it won't make up for the numerous other industries expected to decrease orders.

What this seems to imply is the effects of the stimulus program are diminishing, and the reality of the markets are taking over, and the results are telling us it didn't take hold, as many expected, and now we probably must face the fallout from demand being determined by the market and not artificial government props.

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