Tuesday, May 11, 2010

US Steel (NYSE:X), AK Steel (NYSE:AKS), ArcelorMittal SA (NYSE:MT) Fall on China Tightening

A number of companies in the commodity and/or raw materials sector have been under pressure lately, and that's true in the steel industry, as US Steel (NYSE:X), AK Steel (NYSE:AKS), ArcelorMittal SA (NYSE:MT) are down so far in today's trading session because of China's battle against a housing market bubble bursting, and so they're tightening things up to better manage the situation, which has generated uncertainty as to how that will affect the demand for building materials.

This shouldn't dramatically impact the steel industry, but it could cause some of their projections to fall short, depending on how much China may cut back on imports of iron ore and steel, among other materials.

All companies and countries relying on China are getting nervous over how deeply China will have to cut back in order to bring things to a better balance.

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