Key Updates in U.S. Steel Corporation’s Q3 Earnings Call



U.S. Steel Corporation’s earnings call

In the previous part, we saw that U.S. Steel Corporation’s (X) earnings guidance could be part of the company’s third-quarter earnings call. In this part, we’ll look at a few other updates that markets might watch in the company’s third-quarter earnings call.

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Steel demand outlook

There are concerns about the outlook for US steel demand. US car sales fell year-over-year in September, while new home sales fell to a two-year low. AK Steel (AKS) ships almost two-thirds of its steel to automotive customers. Along with a demand slowdown, there are concerns that additional supply, including from U.S. Steel Corporation’s Granite City facility, could pressurize US steel prices (CLF). During the company’s third-quarter earnings call, it would be interesting to hear U.S. Steel Corporation’s views on steel demand (XME).

Asset revitalization plan

Markets would also like to hear U.S. Steel Corporation’s views on its asset revitalization plans. The company is spending ~$2 billion on its plants, which should structurally improve its earnings and help it compete with new age mini-mills like Nucor (NUE) and Steel Dynamics (STLD).

The markets will watch U.S. Steel Corporation’s views on the Section 232 tariffs. There have been reports that Canada and Mexico could be exempt from the tariffs. Canada is the largest steel exporter to the US. The country’s steel exports to the US have risen in 2018 despite the Section 232 tariffs.

Several analysts have taken a bearish view of the US steel industry and U.S. Steel Corporation. The peak steel sentiment has taken center stage.

Next, we’ll see how analysts rate U.S. Steel Corporation before its third-quarter earnings.


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