Wednesday, April 13, 2011

POSCO (PKX) (WOR) (CRS) (GSI) Drop as Commodities Correct

A general correction in commodities prices as a result of the plunge in oil prices pressured the steel sector, with POSCO (NYSE:PKX), Worthington Industries, Inc. (NYSE:WOR), Carpenter Technology (NYSE:CRS) and General Steel Holdings, (NYSE:GSI) all closing down Tuesday.

Crude oil prices for May delivery were down 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 dropped $3.67 to $106.25. Prices fell 5.9 percent on April 11 and 12.

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

General Steel Holdings closed Tuesday at $2.08, falling $0.18, or 7.96 percent. Carpenter Technology closed at $40.69, down $0.29, or 0.71 percent. Worthington Industries, Inc. closed at $20.19, dropping $0.27, or 1.32 percent. POSCO ended the session at $109.51, declining $0.91, or 0.82 percent.

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