Mechel OAO (MTL) (MT) (X) (GGB) Drop as Commodities Correct

A general correction in commodities prices spurred by the plunge in oil prices pressured the steel sector as well, with ArcelorMittal (NYSE:MT), US Steel (NYSE:X), Gerdau S.A. (NYSE:GGB) and Mechel OAO (NYSE:MTL) all closing down Tuesday.

Crude oil prices for May delivery fell as much as 63 cents, or 0.6 percent, to $105.62 a barrel in electronic trading on the New York Mercantile Exchange. The contract was at $106.01 at 10:14 a.m. Sydney time. Yesterday, it fell $3.67 to $106.25. Prices dropped 5.9 percent on April 11 and 12.

The U.S. raised its crude-oil price projection for 2011 to an average $106.38 a barrel from $101.77 in March, according to the Energy Department’s Short-Term Energy Outlook.

Mechel OAO closed Tuesday at $28.58, falling $0.83, or 2.82 percent. Gerdau S.A. closed at $12.36, down $0.41, or 3.21 percent. ArcelorMittal closed at $35.80, dropping $0.72, or 1.97 percent. U.S. Steel ended the session at $50.52, declining $1.20, or 2.32 percent.