Steel stocks - Cramer disses them too!
The carnage continues in the steel sector, both in the US:
as well as in India:
Nor is the news getting any better:
Business Standard: Steel prices could soften by $150/tonne
Steel prices, which have softened 20-25 per cent in the last few months, may drop further by $100-150 a tonne due to falling demand for steel in the West, with no signs of recovery in user industries like housing, autos and durables.
Though prices of iron ore, a key input in steel-making, has come down sharply from $148 a tonne to below $100 a tonne, global steel majors may not benefit immediately as they are locked into long-term supply contracts for iron ore.
Indian steel-makers are exposed on coking coal, another key input for steel-making, where they need to import two-thirds of their requirement of 25 million tonnes. Coking coal prices remain high though they are likely to correct.
Hindu: JSW Steel in price cutting spree
JSW Steel seems to be on a price cutting spree as it has decided to cut prices of its products a second time in recent months, the first cut being the one effected last month.
. . . the bottom line of the steel producers were well protected due to easing input pressure as iron ore and coking coal prices had declined.
Investerms: US Steel Drops Amid Slowing Demand, Lower Prices
United States Steel Corporation (NYSE: X) shares plummeted as the stock received a negative recommendation by CNBC’s Jim Cramer on his Mad Money Lightning Round. The hedge fund manager turned television star believes that steel stocks like this one will roll back to their 2005 levels as demand for steel continues to decline. China provided the big boost in the past, but now that growth appears to be slowing. Cramer noted that this stock could reach $40 or $50 before it bottoms completely.
Wonder what the honchos will have to say at the annual NA Steel Conference? I’m sure they’ve seen the latest data on US ISM, US/Europe car sales, Chinese steel exports, steel futures, etc.
PS: Tata Steel was down over 9%, SAIL -7%, Jindal Steel -11% and JSW Steel -9% today. Wow.
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