American steel industry faces financial crisis
The American steel industry is starting to rust as steel companies report declining demand in the market and price drops.
US Steel, the 120-year-old icon of the steel industry in the U.S., is now the third company to issue profit warnings to investors. US Steel stock dropped on Thursday by 11%. It is the latest fall in the steady decline of the company’s share price, now down not less than 60% from last year.
Steel Dynamics, suffering from a 34% fall in the last year, warned on Wednesday its investors of declining profits from steel operations. Nucor, on the other hand, the country’s biggest steelmaker, cut its profit forecasts on Monday.
US Steel said on Wednesday that in estimates a $0.35 loss per share from July to September, after taking a $53 million cost from a fire at one of its facilities. The company also noted that continued low sales turn out and lack of demand will make things worse and eventually decrease the company’s shipments in the quarter.