The US steel industry is hard to continue

publisher: Gloria Wong
Time: 2019-07-01
Summary: The drop in demand coupled with the increase in US steel production has led to a sharp oversupply of steel and a sharp fall in prices since the beginning of the year.

In 2018, the United States ushered in the highlights of thepast 10 years. Steel prices remained at a high level, and corporateprofitability reached record levels.

However, as the market gradually returned to rationality, USsteel prices have declined significantly since the beginning of the year, andsteel companies' earnings in the second quarter were lower than expected.High-cost producers also felt the pressure on the market, and USSteel announcedthat it would start production cuts. At the same time, driven by good earningsin 2018, US steel producers have restarted their previous idle capacity andmade new investments. Some analysts believe that US steel production capacitywill increase significantly in the next two years, and new pressure on marketprices, the prospects are not optimistic.

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