Yesterday, the company announced that it will idle its Fairfield, AL blast furnace.
The company will idle the plant in mid-August as it looks to cut down on its raw material inventory, the company said, according to the Pittsburgh Business Times.
Last month U.S. Steel updated the notices it sent to 1,900 employees in January, saying that potential layoffs could affect 1,414 union and non-union employees.
U.S. Steel is looking to trim its overhead as it faces headwinds due to a strengthening dollar and an influx of what it claims are unfairly traded imports from China.
Earlier this week the company declared a dividend of five cents per share payable September 10 to shareholders of record on August 12.
Insight From TheStreet Research Team:
U.S. Steel is the subject of today's 'Chart of the Day' analysis by Trifecta Stocks' Bryan Ashenberg and Bob Lang. Here is what they had to say:
Commodities in general have been beaten to a pulp since late Spring, nothing has been spared. Steel names have some of most gruesome charts, and U.S. Steel Corp. (X:NYSE) is certainly no exception.
After falling from support at $24, the stock did a swan dive to the mid teens and finally reached a long term support line. The capitulatory event hit on Monday, and the stock has been on a tear ever since.
We can see the breaking of the downtrend line on Tuesday and then follow-through on Wednesday for a huge 15% gain. But that barely put the stock out to resistance.
Let's call this the "mean reversion" trade, which is likely to fail. "V" bottoms rarely stick as so many want to get out (sellers) of positions.
However, we see a Moving Average Convergence Divergence buy signal, and there is possibly more room to run toward the $21.50 area.
DISCLOSURE: Trifecta Stocks has no position in X. This Alert is a technical analysis of the company's chart, and we are not taking any action in the stock at this time.
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