US steel industry’s 2018 outlook
So far, 2018 has started on a positive note for US steel stocks (XME). Steel stocks continued the positive momentum from December. Although steel companies including U.S. Steel Corporation (X) and Nucor (NUE) closed 2017 with gains, it was a somber year for US steel companies (CLF). Due to the rally in December, some steel stocks managed to recoup their 2017 losses. AK Steel (AKS) was an exception and its stock fell 44.5% last year.
US steel stocks witnessed a sharp rally in 2016. Companies including U.S. Steel Corporation and AK Steel more than quadrupled. Rising global steel prices and President Trump’s election fueled a rally in US steel stocks.
With 2017 behind us, investors might be wondering whether steel stocks will continue their good run in 2018 or if we could see a pullback from these levels. In this series, we’ll look at the US steel industry’s 2018 outlook. We’ll also look at the key developments, both domestic as well as international, that US steel investors should watch for in 2018. Since the ongoing Section 232 imports probe could be a key driver of US steel companies this year, we’ll analyze how the probe could impact the steel industry.
In the next part, we’ll discuss steel companies’ performance in 2017.