Why Shares in United States Steel Slumped This Week
Shares in steel producer United States Steel Corporation (NYSE: X) crashed 19.5% in the week to the close of trading on Thursday, according to data provided by S&P Global Market Intelligence. The move caps a dismal week for U.S. steelmakers. On Wednesday, Nucor caused a sell-off in the sector after it released disappointing third-quarter guidance. Nucor's third-quarter earnings are set to fall significantly below the market's prior estimates due to "metal margin contraction" as steel prices fall.
Investors didn't have too long to wait before United States Steel started singing from the same hymn sheet. The company also issued third-quarter guidance, with CEO David Burritt noting the company's response to "market headwinds that have accelerated over the quarter."
In a nutshell, the steelmaker is idling plants and bringing forward outages in response to weakening demand.
Source Fool.com
