Tuesday, September 30, 2008

US Steel shares down on 'buyers' strike'

Shares of steel producers fell hard Monday after buyers virtually suspended purchases in the expectation that the cost of steel product will fall.

"There's actually a buyers' strike at the moment," Soleil analyst Charles Bradford said in a telephone interview.

"Basically what happened is that the price of scrap steel plummeted in late August and early September between a third and a half, between $250 per ton and $300 per ton," Bradford said.

"But steel mills have only cut their prices by about $100 per ton, so buyers have been waiting for them to cut their prices accordingly.

Read the full report at forbes.com

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