UPDATE: Citigroup Downgrades U.S. Steel to Sell in Light of Falling Price Environment

In a report issued Tuesday, Citigroup downgraded US Steel

from Neutral to Sell and adjusted the price target to $23. In the report, Citigroup's Brian Yu commented on both US Steel's new management and captive iron ore mines stating, "US Steel appears stronger with new management removing costs but this may not be enough in a falling price environment." Yu continued, "this is unlikely to change given the company's captive iron ore mines, which provide a raw materials advantage but also greater fixed over variable cost structure." At last check, US Steel was trading at $26.06.