Weekly Update: US Steel Stocks Lost Momentum Last Week
After a remarkable run in the preceding two weeks, US steel stocks lost momentum last week. U.S. Steel (X) lost 4.7% during the week, while AK Steel (AKS) shed 2.2% of its market capitalization. Nucor (NUE) and ArcelorMittal (MT) lost 0.80% and 0.63% last week, respectively.
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The key events in the steel space last week were as follows:
- The National Congress of the Communist Party of China (or CPC), which began on October 18, concluded last week on October 24.
- On October 25, the United States Census Bureau released the preliminary steel imports data for September. The data showed the United States imported 2.8 million metric tons of steel last month.
- On October 26, Commercial Metals Company and Reliance Steel and Aluminum released their quarterly earnings. There were reports that CMC is looking to buy Gerdau’s US rebar mills (SPY) (SPX). During its 3Q17 earnings call, CMC noted, “regarding the recent rumors referencing Commercial Metals and potential acquisitions, we will not comment on rumors and will not address any questions related to speculation with respect to potential transactions.”
In this series, we’ll take a closer look at the major developments that impacted US steel stocks in the fourth week of October. We’ll also look at the key events that US steel investors should follow this week.