4 Steel Stocks That Have Gained More Than 30% in 2024 Amid Price Slump

Industry Overview - The steel industry has experienced a loss of momentum after a strong performance earlier in the year, with steel prices undergoing a sharp downward correction both in the United States and globally [1][3] - A significant pullback in steel prices has been observed, with benchmark hot-rolled coil (HRC) prices dropping over 40% from $1,200 per short ton at the start of 2024 to around $700 per short ton [3][4] - Factors contributing to the downturn include oversupply, reduced demand from key industries, economic uncertainties, and sluggish industrial production and construction activities [4][5] Demand Dynamics - Steel demand in China has softened due to a slowdown in the economy, particularly following a protracted property crisis, which has significantly impacted the real estate sector that accounts for approximately 40% of China's steel consumption [5] - The global automotive production slowdown has also curtailed steel consumption, while high interest rates have dampened demand in the U.S. construction sector [6] - Despite challenges, demand from non-residential construction remains strong, driven by government initiatives for infrastructure projects, which are expected to continue into 2025 [6] Company Performances - Certain steel companies have shown resilience and delivered impressive performances in 2024, including Carpenter Technology Corporation, Universal Stainless & Alloy Products, L.B. Foster Company, and Worthington Steel [2][7] - Carpenter Technology has a strong financial position and is benefiting from demand in aerospace and defense, with expected earnings growth of 42.2% for fiscal 2025 and a share price increase of 156.5% year to date [10][11] - Universal Stainless & Alloy Products is experiencing significant growth in the aerospace market, with an expected earnings growth rate of 522.4% for 2024 and a share price increase of 120.2% year to date [12][13] - L.B. Foster is seeing growth in its Rail Technologies and Precast Concrete businesses, with an expected earnings growth of 3,146.2% for 2024 and a share price increase of 31.5% year to date [14][15][16] - Worthington Steel is focused on value-added solutions and investments in the electrical steel market, with stable earnings estimates and a share price increase of 57.5% year to date [16][17]