The US steel industry is expected to register growth

The increase US steel industry is expected to register growth this year. Production is expected to increase due to lower imports and dynamic demand from the construction and energy sectors.

Like their foreign counterparts, US steel producers such as Nucor, US Steel and AK Steel have been affected by global oversupply, falling raw material prices and cheap imports from countries like China.

Production will increase in the US steel industry

Crude steel production in the world’s largest economy will increase by 4.4 percent in 2017. After almost two years of contraction. According to a survey carried out, with the help of 20 analysts, by the Financial Times.

Jefferies analyst Seth Rosenfeld said a recovery in US steel demand will be fueled by strong activity in the non-residential building and oil/gas sectors. Despite the weaker activity in the automobile sector.

Another key point will be the behavior of China, the largest steel producer, which was responsible for almost half of last year’s production. Accused of excess products at unfair prices, it promised to close the factories that are not needed.

In the European Union, production will increase by 1.5 percent. Several analysts have stated that they expect the financial performance to improve in this sector.

Last year the world’s largest steel producer by tonnage, ArcelorMittal, resorted to a $3.3 billion capital increase. To reduce his debt after recording a record loss.

A relaxation of the price of a key ingredient of steelmaking – metallurgical coal. If it will be coupled with an increase in the price of steel. It will help restore a healthier level of profitability in this sector. Said Mike Shillaker, analyst at Credit Suisse.

Article source: https://www.ft.com/content/1522243c-c93e-11e6-8f29-9445cac8966f