US Steel Stocks Look ahead to November after a Volatile October
October was a volatile month for steel producers (XME). Although steel stocks saw upward price action in the beginning of October, we saw selling pressure in the last week of the month. AK Steel (AKS) lost 17.9% last month and added to its 2017 losses.
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In this series, we’ll look at some of the key factors that impacted steel companies’ price action last month. We’ll also look at events and data points that US steel investors should follow in November.
Notably, this week marks one year since Donald Trump was elected as president of the United States. Steel stocks were the frontrunners in “Trump trade” last year.
Investors became bullish on the US steel industry, expecting higher steel demand as a result of Trump’s proposed infrastructure initiatives. Trump’s resolve to protect US manufacturing from the onslaught of imports was a key driver of investor optimism.
Because steel is a global commodity, US steel prices are also affected by global developments along with domestic market dynamics. Later in this series, we’ll look at some of the global events that could be of interest to US steelmakers in November.
Let’s begin by looking at some of the factors that impacted steel stocks in November.