The steel industry continues to be out of favor, and Longbow Research reflectd that with their downgrades of U.S. Steel (NYSE:X), Steel Dynamics (Nasdaq:STLD and Nucor (NYSE:NUE), although MF Global (NYSE:MF) did upgrade Arcelor Mittal (MT) from "Neutral" to "Buy" in the sector.
US Steel was downgraded from "Buy" to "Neutral," with a price target of $60 kept in place; Steel Dynamics was downgraded from "Buy" to "Neutral," with Longbow keeping a price target of $20 on the company; Nucor was dropped from "Neutral" to "Sell."
Steel prices are expected to remain under pressure for some time, and competition in certain segments like flat roll mill will continue to challenge a number of the steel producers.
Goldman Sachs (NYSE:GS) also downgraded several steel producers recently, including U.S. Steel and Nucor.
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