RE:So what is the deal with steel these days ???
IMO - Steel stocks are caught up in the uncertainty of the US trade actions and the fact that they could have a negative impact on world growth. MT due to the fact that it has production capability in most parts of the world is in the best position to deal with the tariff issues. Although not ideal, they can adjust production in their different plants to minimize the impact of tariffs. other companies do not have that flexibility and either have to deal with the tariff costs or quit selling.
One problem that MT is facing and coming up shortly is that their contract with the US steel workers ends this September and negotiations are still far appart. I am not sure if this includes their Alabama fascility or just their mid western US operations. if it does not include their Alabama fascility in which they finish a lot of Brazilian slab, then they are in a far better position to deal with this issue.
Steel is cyclical and at this point in the cycle, the market is in the" show me" mode. Continued lowering of the debit, increased dividends, a final resolution to the Ilvia purchase in Italy are all things that should help going forward.
with a positive outcome on the Nafta trade issues and movement forward on some of these other issues and as long as we maintain positive world growth, IMO their is no reason MT should not be knocking on $50 US.
JMO