Moody's Sees Negative Outlook For Steel Industry

NEW YORK (AP) — Moody's Investor Service on Wednesday offered a negative outlook for U.S. steel producers, saying they will continue to face challenging market conditions through the rest of the year.

During the fourth quarter, steel demand and prices began to decline as the world financial crisis continued to spread and economic conditions weakened. The impact of such economic deterioration, says Moody's, led steel producers in the U.S. to post broad-based losses in the span of three to fourth months.

The ratings agency said weakening demand has been seen among key steel-consuming industries like construction and automotive markets, but also among other markets like energy, power and appliances. ...