Why Last Week Was Big for US Steel

Mohit Oberoi, CFA - Author

Oct. 16 2017, Updated 5:31 p.m. ET

US Steel

US steel stocks have had a tepid year after the spectacular rally last year, and there’s a sense of apprehension in the market that US steel prices could follow steel scrap lower.

However, just when US steel market sentiments were starting to get even more bearish, following a steep fall in steel scrap prices, a series of events gave steel stocks a boost last week.

U.S. Steel (X) and AK Steel (AKS) gained 5.0% and 3.9%, respectively, last week, while Nucor (NUE) gained 3.8%. Notably, Nucor was the S&P 500’s (SPY) (SPX-INDEX) top gainer on October 11.

Article continues below advertisement

Price action

Month-to-date, U.S. Steel has gained 6.6%, while AK Steel is up 3.7%. ArcelorMittal (MT), the world’s largest steelmaker, has gained 12.8% so far in October, based on closing prices on October 13. Notably, ArcelorMittal has outperformed US-based steelmakers this year, but almost all US-based steel companies are trading with year-to-date losses—even with last week’s upward price actions.

Series overview

Last week was full of action for US steel stocks. For a broader context, you might be interested in reading the series US Steel Producers or Buyers: Who’ll Win the Tug-of-War to find out how lower steel scrap prices could impact different steel companies.

Keep reading this series (below) for a closer look at the major developments that impacted US steel stocks last week. We’ll also look at the key events that US steel investors should keep following this week.


Latest SPDR® S&P 500 ETF News and Updates

    Market Realist Logo

    © Copyright 2022 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.