Shares of steel producers fall on demand worries
NEW YORK (AP) — Shares of U.S. steel producers slid Tuesday along with other materials companies on renewed concerns of slowing growth.
Steelmakers face a rough environment across broad geographic regions. The metals and mining sector was among the worst performers on the Standard & Poor's index.
Spain's central bank said Tuesday that its economy continued to shrink in the third quarter, contracting by 0.4 percent compared with the previous three months.
Other global companies, including Caterpillar on Monday, cited slower-than-expected growth in the U.S., China, and noted the broadening recession in Europe.
On Tuesday, AK Steel Said that the economic headwinds are driving down prices and contributed to a small drop in shipping volumes during the quarter. The company reported a loss of $60.9 million for the quarter. Revenue fell almost 8 percent.
South Korean steel maker Posco said that it expected growth in steel demand to range between 2 percent and 3 percent by 2013 because of slower demand globally in both developed and emerging countries.
In afternoon trading, shares of AK Steel Holding Corp. fell 35 cents, or 6.4 percent, to $5.16; U.S. Steel Corp. dropped $1.01, or 4.4 percent, to $21.90 and Nucor Corp. fell $1.07, or 2.6 percent, to $40.05.