In a report from CNBC Wednesday, analysts suggested investors “ditch” US steel stocks as the market has “reached the end of the line despite efforts by the Trump administration to revive the industry.”
UBS analysts quoted in the report said US steel prices are expected to decline by 17 percent through the end of 2019, regardless of Section 232 tariffs imposed on import sources.
While the tariff announcement initially resulted in lower imports and limited supply, creating volalitily, the report said analysts expect the market to “return to equilibrium” due to the downtrend in end-use demand driven by higher prices.