Will Steel Prices Rise During the Coronavirus? U.S. Steel Hopes So.
Barrons - Worry over the virus has pummeled the stock market and crimped the Chinese economy—the second-largest in the world, and the biggest consumer of commodities—for much longer than the typical Lunar New Year holiday pause. That economic backdrop doesn’t feel like a recipe for higher steel prices.
But if the steel-price increases stick, it could be a boost for the embattled sector. Steel stocks aren’t doing well of late.
U.S. Steel (ticker: X) stock is at a 52-week low, down 32% year to date. Shares trade for less than 6 times estimated earnings before interest, taxes, depreciation and amortization. Nucor (NUE) stock is also a 52-week low, down 26% year to date. Shares trade for 11 times estimated 2020 earnings, a steep discount to the broader stock market.