U.S. steelmakers' shares drop on euro, bleak news
(Reuters) - U.S. steelmakers' shares fell on Wednesday and analysts said it likely was due to the euro falling against the dollar, as well as other negative news for the industry.
"All commodities are getting killed. I think it's probably the dollar," said analyst Charles Bradford of Bradford Research in New York.
He said U.S. steel prices, already weak, were likely to fall further as the euro's decline against the dollar makes U.S. products more expensive.
The euro hit a 23-month low against the dollar in New York as Italian borrowing costs soared and concerns mounted over Spain's banking sector.
In other bleak news for steelmakers, Moody's cut German steelmaker ThyssenKrupp's (TKAG.DE) outlook to negative from stable. And Austrian steelmaker Voestalpine (VOES.VI) said prospects for a European sector upturn were fading as demand wanes and excess capacity triggers "destructive price wars."
In morning trading on the New York Stock Exchange, AK Steel (AKS.N) was down 1.8 percent at $6.42, U.S. Steel (X.N) fell 3.4 percent to $21.69, and Nucor (NUE.N) slipped 1.8 percent to $35.94. Steel Dynamics (STLD.O) fell 2.8 percent to $10.58 on Nasdaq.
(Reporting By Steve James; editing by John Wallace)
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