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US Steel Forecasts Weaker Earnings on ‘Depressed’ Prices

A tugboat pushes a barge near the United States Steel Corp. Clairton Coke Works facility in Clairton, Pennsylvania, US. Photographer: Justin Merriman/Bloomberg (Justin Merriman/Bloomberg)

(Bloomberg) -- United States Steel Corp. warned its fourth-quarter earnings will be lower than anticipated as steel prices remain depressed in the US and as the demand environment in Europe is weak.

Shares of the Pittsburgh-based company fell 2.9% in after-hours trading in New York as the steelmaker said it expects adjusted earnings before items of about $150 million, well below the $261.7 million average estimate among 6 analysts on Wall Street. The warning comes after Nucor Corp., the largest American steel producer, forecast lower than expected earnings on decreased volumes.

Domestic benchmark steel prices are down 40% this year as demand for the alloy has waned across building and construction to appliances.

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