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GM Strike Sends Another Knock to Wobbly U.S. Steel Sector

  • Carmaker accounts for 5% of U.S. steel consumption, UBS says
  • ‘We’re struggling to find positive catalysts to support steel’
Steel

Photographer: Ty Wright/Bloomberg

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With its midyear recovery already in doubt, the American steel industry now has a little more to worry about with each passing day a strike drags on at General Motors Co.

Analysts at UBS Group AG remain cautious on domestic steelmakers such as U.S. Steel Corp., arguing in a report that the market likely has weakened since producers provided worse-than-expected guidance last month. Compounding the concern is the GM strike because the automaker represents roughly 5% of annual steel demand in the U.S.