X - Steel companies slide on China's lackluster economic outlook

2023-03-06 15:27:09 ET

Steelmakers led by U.S. Steel ( NYSE: X ) and Cleveland-Cliffs ( NYSE: CLF ), -4.6% and -4.1% respectively, post broad losses in Monday's trading as metals prices are falling on China's surprisingly cautious economic outlook .

Also sharply lower: Commercial Metals ( NYSE: CMC ) -4.5% , Steel Dynamics ( STLD ) -3.1% , Companhia Siderurgica Nacional ( SID ) -3.1% , Gerdau ( GGB ) -2.8% , Reliance Steel ( RS ) -2.4% , Nucor ( NUE ) -1.8% ; ETF: ( SLX ).

China announced a goal for ~5% growth in gross domestic product at the annual National People's Congress on Sunday, lower than economists had expected.

"The NPC sent the message that the government only aims to support and stabilize the economy, instead of issuing massive stimulus," according to Jiang Hang, head of trading at Yonggang Resources, adding that foreign investors had been too optimistic about the potential for more stimulus.

Steelmakers including U.S. Steel ( X ), Nucor ( NUE ) and Cleveland-Cliffs ( CLF ) have been raising steel prices in recent weeks .

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