US Steel Producers Get Some Respite from China

China is the world’s largest steel producer, consumer, and exporter. Chinese steel exports form a minuscule amount of US steel imports. However, the country’s steel exports still impact US steel companies like U.S. Steel (X), AK Steel (AKS), and Nucor (NUE), as higher Chinese steel exports put pressure on global steel prices, which eventually impacts the US steel pricing environment. Notably, US steel prices have risen sharply this year, hurting earnings of some of the end users. The industrial sector (DIA) has underperformed this year amid the US-China trade war scare.