Shares in Reliance Steel & Aluminum Co. dropped 1.5 percent after the Los Angeles steel and aluminum distributor was cut to “neutral” from “buy” by UBS analyst Timna Tanners.

Tanners said a “sharp” drop in demand for stainless steel will hurt third-quarter sales as will the slowing non-residential construction growth.

In July, Reliance forecasted third-quarter earnings of $1.30 to $1.35 a share, far below analysts’ expectations of $1.52 per share. Reliance said it expects demand and pricing in the third quarter to soften as part of “the normal seasonal summer slowdown.”

Shares in Reliance were off 81 cents to $54.82 in afternoon trading Monday on the New York Stock Exchange.