Steel shares take a sound drubbing
Shares of steelmakers fell Wednesday over concerns of high inventories and softening demand.
Global financial firm UBS slashed forecasts on prices for hot-rolled steel for 2005 and 2006 and, subsequently, cut price targets for
US Steel, Steel Dynamics, and Wheeling-Pittsburgh Steel Corp. (WP).
Shares responded in kind with AK Steel falling 6.9% and
US Steel, 3.4% while over on the Nasdaq, WP fell 4.2% and Steel Dynamics lost 4%.
Shares of steel makers had risen in the early part of May but declined on swelling inventories and declining pricing power. It is widely hoped that planned plant shutdowns by
US Steel and Mittal will ease inventories back and help halt skidding prices.