NEW YORK (TheStreet) -- Shares of Ohio-based steel maker AK Steel Holding Corp. (AKS) are down 9.04% to $5.68 as oil prices fall, causing U.S. producers to cut capex and rig plans, and leading to less demand for steel products the oil sector uses, notably tubular goods.
On the New York Mercantile Exchange, West Texas Intermediate for February delivery slid 2.59% a barrel to $55.65 at 1:52 p.m. in New York. February Brent crude declined by 1.58% to $60.41.
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The steel industry is a major supplier to the energy industry with about 178 million tons of steel, or 12% of total finished steel production, consumed by energy industries, according to WorldSteel.
Separately, the Ohio-based steel maker said on Friday it anticipates earnings in the range of 5 cents to 10 cents in the fourth quarter, above analyst estimates of 4 cents, as the company also expects steel shipments to surge 37%. AK Steel attributed the anticipated increase to acquisitions and high demand from the automobile industry.
TheStreet Ratings team rates AK STEEL HOLDING CORP as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation: