US Steel (X) in the Years Ahead

US Steel (NYSE:X) will be affected by the anticipated slowdown in steel production in China which will also affect imports, as China will start rolling blackouts earlier than usual, which is always directed towards the steel industry in the country at the beginning of the process and onwards.

Tightening of the economy is also a major factor as China continues to attempt to rein in inflation after overstimulating the economy by printing too much money.

According to the China Iron & Steel Association, the Chinese government is pushing to slow down economic growth, with one of the consequences being the demand for steel slowing down.

Expectations are steel consumption in China will drop by up to 4.6 percent in 2011, with the minimum outlook being a 2.6 percent drop in consumption.

Higher input costs and product prices are weighing heavily on the industry, and it's not clear how much the industry will be able to past on to their customers before they cut back on buying.

Industry observers see the next five year as being challenging for the industry as far as growth goes.

United States Steel Corporation participates in the production and marketing of a variety of steel products primarily in North America and Europe.

US Steel (NYSE:X) closed Friday at $44.65, falling $0.95, or 2.08 percent.