U.S. Steel sheds 6% as Citi forecasts weaker H2 steel market
Steel stocks closed mostly lower Tuesday after Citi analyst Alex Hacking told the Tampa Steel Conference that he expects a weaker steel market in this year's second half, Bloomberg reported.
Automotive demand will improve in 2023 from last year, but Hacking said weaker construction, slower manufacturing and reduced demand for appliances will pull down the rest of the steel market, also forecasting hot-rolled coil prices of $650-$800/ton for 2023
U.S. Steel (NYSE:X) closed -6.6% in Tuesday's trading, while Cleveland-Cliffs (CLF) ended -3.2% and Nucor (NUE) -1.5%.
Also at the Tampa conference, U.S. Steel (X) Chief Commercial Officer Kenneth Jaycox said the U.S. government should "put its money where its mouth is" and invest in the steel industry to help it achieve net zero emissions targets by 2050, according to Bloomberg.
Separately, the U.S. Circuit Court of Appeals in Washington, D.C., upheld the imposition of higher tariffs on some imported steel products, reversing a lower court ruling that the Trump administration waited too long to act.
U.S. Steel (X) shares rallied to a nine-month high last week after reporting better than expected Q4 adjusted earnings and revenues.