Whether it has anything to do with the trade war or the fears of recession, the US steel industry is going through a bad patch and may soon bring a bad news for the Trump administration. The stocks of the larger steel industries in the US like U.S. Steel, AK Steel, and Nucor have had a considerable fall in August.
It should be noticed that the year 2018 has had a good performance from the steel industry perspective. But, this year does not seem to be rosy any more. U.S. Steel, for one, closed two of its US furnaces. It is also likely to undertake a few job cuts in the near future.
Another big player, JSW steel has decided to put on hold the expansion plans it had planned for the year. In any case, the picture is not entirely gloomy as you would want to believe. JSW Steel has been able to ramp up the operations that it has across all the plants.
The stocks have been falling and that can be one of the serious concerns and may need a special attention. U.S. Steel, AK Steel, and Nucor have all experienced a drop in the stocks. There has been a fall of 25.3%, 23.0%, and 13.7% for the three major players respectively in the month of August.
Even then, the broader market indices have been showing that there is not much hope last. It is just that the markets need to believe Trump’s assurance that the steel industry in the US is thriving.