Steel companies warn on falling prices

Steel companies worldwide are dealing with falling prices and warnings on profits even as most other commodities have hit record highs recently.

Nucor, the biggest steel producer in the United States, issued a warning on Monday that its second quarter profits will likely be under predictions as prices and demand are both down.

The American Iron and Steel Institute has released data showing that declining demand resulted in a drop in United States steel shipments of 7.6 percent from March to April.

Then on Tuesday, the International Iron and Steel Institute released figures that showed Chinese steel production in May up 37.5 percent from last year, to 297 tonnes.

One analyst said that there was a danger that higher Chinese steel production could not only decrease China’s need for imported steel but could even result in that nation resuming steel exports to Europe.

Even though other analysts think that strict controls in place in China will put a cap on China’s capacity to make steel and lessen its likelihood of beginning exports, share values in Europe have been falling.

Shares of Corus are down 4 percent, Arcelor has lost 1.9 percent, and ThyssenKrupp has fallen 1.5 percent.

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