Shares of United States Steel Corporation (NYSE:X) declined almost 10% on Wednesday as traders basically sold off anything related to iron after the spot price of 62% fines iron ore dropped the most in almost a year. Although lower iron ore prices isn’t necessarily a bad thing for U.S. Steel, the softer price indicates less confidence in China, whose demand for steel could negatively affect United States Steel Corporation (NYSE:X) profits. Moreover, softer iron ore prices mean a pause/reversal in the Trump trade, a factor which could hurt sentiment in the steel sector.
Shares of United States Steel Corporation (NYSE:X) could also be down due to the news of a chemical spill in the company’s Indiana facility. Apparently an unknown amount of liquid containing hexavalent chromium leaked within 100 yards of a lake. So far though, the likely impact looks contained at the moment as EPA sampling has not shown any evidence that the carcinogenic chemical has entered the lake.
What Does The Smart Money Sentiment Say?
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Smart money sentiment for United States Steel was stable in Q4. 35 top funds had a bullish position in United States Steel Corporation (NYSE:X) at the end of the fourth quarter, unchanged from that of the previous quarter. In terms of individual movements, Jim Simons‘ Renaissance Technologies upped its holding by 69% quarter-over-quarter to 5.655 million shares at the end of December.
The Bottom Line
United States Steel Corporation (NYSE:X) shares have fallen in reaction to the decline in the price of iron ore. For more reading, check out ‘8 Countries That Produce The Most Steel In the World‘.