US steel stocks
US steel stocks have seen selling pressure recently, with US-China trade friction taking a toll on broader markets, particularly metals and mining. Since China is the largest consumer of steel (XME), aluminum, and copper, metals tend to be sensitive to any developments related to China.
As of June 20, U.S. Steel Corporation (X) and Nucor (NUE) had risen 1.5% and 3.6% this year, while ArcelorMittal (MT) and AK Steel (AKS) had fallen 1.8% and 16.6%. How far the US-China trade war will go remains to be seen. Both sides have continued to harden their stance, and other countries are joining the fray. The European Union slapped tariffs on US goods after its Section 232 exemptions were not extended.
Donald Trump’s tariffs hung like a cloud over this month’s G7 meeting, with some critics now referring to the group as “G6 plus one.” Could the worst be over for steel stocks, or is there more downside ahead? In this series, we’ll see how the rest of the year looks for US steel stocks.