What Will Santa Bring for US Steel Producers This Christmas?


Nov. 20 2020, Updated 11:25 a.m. ET

US steel producers

It’s been nothing short of a fairy-tale year for US steel producers (XME). Companies such as U.S. Steel Corporation (X) and AK Steel (AKS), which were among the worst performers last year, have seen spectacular rallies.

While AK Steel has risen by 128% year-to-date (or YTD), U.S. Steel’s stock has surged by 170% over the same period.

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2Q16 earnings

Other steelmakers have also joined the party. ArcelorMittal (MT) has risen by 97% YTD, while Nucor (NUE) and Steel Dynamics (STLD) have risen by 25% and 42%, respectively, since the beginning of the year.

Most steel companies’ 2Q16 earnings were received well by markets. U.S. Steel rose by 11% after its 2Q16 earnings release, while AK Steel surged by more than 14% after its 2Q16 financial results.

ArcelorMittal also saw upward price action of 6% after its 2Q16 earnings release. You can read Inside Steel Companies’ 2Q16 Earnings and Future Plans to find out more how different steel companies performed in the quarter.

Series overview

Steel companies’ upward price movements have been driven by improved fundamentals. Steel has actually been among the best performing industrial metals this year.

However, there are concerns that the steel rally has run its course. These falling sentiments are reflected in steel companies’ August price movements. We’ve seen severe downward pressure, especially on U.S. Steel and AK Steel.

In this series, we’ll explore how the steel industry is doing in the United States as well as internationally. This will help us to understand whether companies can close 2016 on a high note or whether it’ll be a lackluster Christmas for the industry.

Let’s start by looking at the recent trend in US steel prices.


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