US Steel Confident On Rising Steel Costs; Prices Persisting

US Steel Confident On Rising Steel Costs; Prices Persisting

US Steel Corporation (X) is one of the largest producers of steel in the United States, and within the top 20 producers in the world. The company recently reported record financial performance during Q4 2021 due to the higher demand of steel post-Covid and inflation. Steel prices are once again on the rise due to disruptions from the war in Ukraine.

US Steel’s Q1 2022 guidance indicates a continued profit from these market conditions. The company’s stock price has seen some uptrend over the last twelve months, gaining about 64%. Considering all present circumstances, I place a bullish rating on US Steel. Investors should watch for a possible end to the steel price rally with an end of the war, and towards the end of the year.

Several commodities, including oil, natural gas, coal, wheat, fertilizer, nickel, and steel, are experiencing volatile price fluctuations due to disruptions from the war. Concerns over the importation of these commodities to the US and Europe from Russia and Ukraine have ben dramatically elevated over the last month.