The stock of United States Steel Corporation (NYSE:X) closed at $ 33.94 losing 1.62% in yesterday’s trading session. It was last Thursday when the Shares of U.S. steel and aluminum companies were hammered and it was around the same time that the United States made its official statement outlining that it was going to be exempting more countries from a tariff on metals.
The S&P 1500 steel index declined by about 7.4 percent, a figure that market analysts have termed the biggest since September 2011.It was sometime back when the U.S. President Donald Trump proceeded to make the pronouncement regarding his plans to move ahead and impose a 10 percent tariff on aluminum imports as well as a 25 percent tariff on steel imports.
Robert Lighthizer, who happens to be a U.S. Trade Representative while coming out of a business conference, recently, came across a number of journalists who wanted to get his perspective regarding the most recent developments.
He told them that in the course of the Senate committee hearing the United States leader had taken to halting the imposition of metals tariffs for Argentina, Europe, Mexico, South Korea, Canada and Australia. According to him, the exemptions define the road towards the achievement of the further competitively priced steel supply and that implies there us the possibility of normalizing the U.S. pricing relative to global levels.
An analyst at KeyBanc Capital Markets Philip Gibbs outlined that with the passage of time it was dawning on them that the current spot was basically unsustainable.
It was on Thursday when the Trump proceeded to undertake the signing of the presidential memorandum and that was going to impose tariffs of about $60 billion of imports from China.
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At this point in time the Steel shares are apparently an extra hit and the perfect explanation for that might be the fact that the market is eventually being beaten down by the strong attack by the administration on China and it goes without saying that the global synchronized growth thesis might end up affected in one way or the other.
A lot of things have been said and done. However, whatever the future brings is something we just have to wait and see.
