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Why Is USeel Worth Considering More Than Steel Dynamics

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Is U.S Steel Worth Considering More Than Steel Dynamics?
Steel companies are falling on more than a few risks, but still some companies are generating growth.
U.S Steel is a dead cat in the short term due to its business model and exposure to energy businesses.
Steel Dynamics has a diversified portfolio and has more exposure towards construction and automotive businesses.
Steel Dynamics is worth considering more than U.S Steel.
Steel companies have experienced many problems over the past couple of quarters. These companies are open to risks such as the depressed energy sector, increasing imports, disequilibrium in supply and demand, and the strengthening dollar. In contrast, significant improvement in auto, construction, commercial, and manufacturing industries are enhancing its results. U.S Steel Corp (X) is an integrated steel producer of flat-rolled and tubular products with production operations in both North America and Europe. The company’s share price has dropped by half since the start of this year. The stock price declined sharply in the last three months due to constantly falling economic growth, troubles in China, higher imports and continued pressure on the energy sector. Investors are showing concerns about the increasing amount of imports of hot-rolled steel flat products, which increased 73% between …show more content…

Recently, the company announced poor second quarter results despite considerable cost savings. Its sales have declined 34% based on year over year comparison to $2.9 billion in the second quarter of this year. The company blames increasing imports and strengthening of the U.S. dollar for this significant decline in sales. Nevertheless, because of its Carnegie Way transformation, it has been able to mitigate the impact of lower prices on its flat-rolled segment, which is its major revenue contributing

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