Steel Industry News
Steel Industry Fired Up But Warning Clouds Ahead
Tuesday, 11, May 2010
Just 12 short months after a seismic contraction, the steel industry is back -- and it's hotter than a freshly poured ingot. Demand has skyrocketed both in the U.S. and worldwide, pushing steelmakers to between 70 to 75% capacity, nearly two-thirds busier than at the start of 2008, when operating rates were roughly half that mark.But that upturn in demand hasn't led to buoyant optimism. Far from it.Last week, when CEOs from some the largest steelmakers in the U.S. met at the 118th annual meeting of the American Iron and Steel Institute in Boca Raton, Fla., much of what was expressed was skepticism that the good times will last.
We are seeing in some sectors a much stronger uptick," said Dan DiMicco, CEO of Nucor. "Automotive is one, and in the last quarter or so, appliances and the energy sector. We are optimistic, but we are cautiously optimistic."While many sectors of the economy have enjoyed some of the benefits of the government stimulus package, it hasn't necessarily impacted the steel industry, said Jim Wainscott, chairman of AK Steel Holding. Much of those funds went toward spurring infrastructure building, but construction in both residential and commercial building remains sluggish.
