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How Are US Steel Producers Positioned in Q2?

Published on date 7th June 2019.

US steel producers We’ve seen a selling spree in US steel stocks in the second quarter. While 2019 started off well for steel stocks, investors have turned bearish on the sector amid the escalating US-China trade war and falling US steel prices. US steel prices have fallen sharply in 2019. US steel prices are below the levels when President Trump imposed the Section 232 tariffs.

U.S. Steel Corporation (X) has been among the worst-performing steel stocks in 2019. Looking at the second-quarter performances, U.S. Steel Corporation and AK Steel (AKS) have fallen 39.2% and 37.5%, respectively, while Nucor (NUE) and Steel Dynamics (STLD) have fallen 17.7% and 28.7%, respectively. First-quarter earnings The first-quarter earnings season went about as well for US steel stocks. Except for Steel Dynamics, major steel companies posted better-than-expected earnings. Cleveland-Cliffs (CLF) also posted better-than-expected earnings. Along with the earnings beat, there are several other metrics that we need to consider like steel shipments. In the first quarter, ArcelorMittal’s (MT) consolidated steel shipments increased 2.5% YoY (year-over-year), while its NAFTA shipments fell 4.3%. AK Steel’s first-quarter steel shipments fell 3.0% YoY. Nucor’s first-quarter steel shipments fell 2.9% YoY in the first quarter. Steel Dynamics’ first-quarter steel shipments were similar to the first quarter of 2018. U.S. Steel Corporation’s first-quarter steel shipments increased 4.1% YoY in the first quarter—the highest among the steel companies that we’re discussing in this series. Last year, U.S. Steel Corporation restarted two blast furnaces at its Granite City facility, which lifted its shipments. As more steel producers add capacity, there will likely be a higher domestic steel supply and depressed US steel prices. Source :


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