MARKET VECTORS STEEL
The steel industry’s titan ArcelorMittal (NYSE: MT) has decided to write down the goodwill of its European operations by $4.3 billion due to the "weaker macroeconomic and market environment” of the continent. The effect of this non-cash impairment charge will be reflected in the fourth quarter’s results due on February 6. The demand for steel in Europe has dropped by 8% this year and 29% overall since more »
The global steel market is huge, valued at about $850 billion by analysts. That is not surprising, considering that steel is one of the world's most widely traded commodities, with a myriad of uses. But right now, the industry is going through a rough patch. Unfortunately for investors in steel and iron ore stocks, it looks like the tough times will extend for another few years.
Interested investors can more »
The economic slowdown in China has reverberations that are felt in many industries all around the globe, some more so than others. Perhaps no item is more closely identified with Chinese economic growth than steel. So it is no surprise that weakness in China has hit companies in the steel industry very hard, even here in the U.S.
Just look at the poor performance of the high beta names more »
In Nordic mythology, Thor, the God of Thunder, is often portrayed with his steel hammer, unleashing his fury upon those who dare challenge his rule or threaten his domain in Asgard .
Surely, shareholders in steel and iron stocks and exchange traded funds must be feeling that way with the performance of the sector. Declining economic growth around the world, particularly in China, has punished the steel industry, and its shareholders more »