NEWS ON STEEL DEMAND WASHINGTON — U.S. raw steel production could exceed previous peaks in the coming years, driven by increased consumption of the metal amid an anticipated rise in housing starts—and in turn nonresidential construction—and continued robust automotive production, according to an industry analyst. Our raw steel production number could get above where it was in the 2000s, Anthony Taccone, strategy consultant and founding partner of Pittsburgh-based First River Consulting, told attendees May 13 at the Steel Manufacturers Association’s annual members’ conference in Washington. When construction finally exits the doldrums ... the prospects for the steel industry are pretty good, he said, pegging potential U.S. consumption at 130 million tons of steel by 2018. And a turnaround in the building industry should be just around the corner, as household formations have exceeded housing starts over the past few years. You’re not building enough because of all the things we know about the financial crisis. That has to change, Taccone said. This in turn should have a positive effect on the nonresidential construction market since the two sectors historically move in lockstep. If that (nonresidential construction) gets anywhere near where it was during the peak, we’re going over 130 million tons, he said. Forecasts of meandering steel capacity utilization of around 75 percent over the next few years were overtly negative, Taccone said, predicting a ramp-up to around 90 percent. You have to make some pretty negative assumptions to reach that (mid-70-percent) conclusion, he said.
Posted on: Wed, 14 May 2014 20:23:12 +0000
Trending Topics
© 2015