U.S. Steel (X) Shaping Up for Strong Rebound - Barron's
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US Steel (NYSE: X) is lower on Monday's trading session, but outpacing the broader market sell-off following a positive mention over the weekend.
Barron's notes recent efforts by CEO Mario Longhi to restructure the company, which the publication expects will begin to payoff soon.
Longhi last week announced that the company would be shuttering its Fairfield Works blast furnace. The company will also build and electric-arc furnace to replace the blat furnace, which will end up sawing the company money as its able to use scrap metal to produce steel and requires fewer workers to operate it.
Due to a narrowing between U.S. and Chinese steel, demand from China could increase amid the yuan devaluation. There might also be capacity reduction in China as the cost to produce steel (about $400 per net ton) is higher than the market value (about $285 per net ton).
In the U.S., the auto sector, nonresidential construction, and appliance markets remain strong, while inventories have also been reduced.
Shares of US Steel are down 1.6 percent.
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