Tuesday, June 15, 2010

US Steel (NYSE:X), Arcelor Mittal (NYSE:MT), Nucor (NYSE:NUE) Coming Under Pressure?

The announcement by Nucor (NYSE:NUE) today that was lowering its earnings guidance today didn't seem to have much impact on the steel industry, as companies like US Steel (NYSE:X), Arcelor Mittal (NYSE:MT) and Nucor (NYSE:NUE) were all up on the day.

But news that steel production is outpacing demand over the last month or so has put downward pressure on margins, and ultimately profits.

Nucor in particular said their decrease in demand came from residential and non-residential segments, driving down the earnings the company had originally projected.

Other countries like India has stated similar things in that the supply is higher than demand now, and their steel companies have had to sell at lower prices to move product.

This could put pressure on others like Arcelor Mittal and US Steel, along with most steel companies until the situation is mitigated.

Specialty steelmakers could do better depending on what their products are.

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