Steel Dynamics Inc., the fourth largest steelmaker in the US. CEO Mark Millett said steel prices, driven to higher levels by increased demand, should start to "erode" in the first half of next year as COVID-related supply bottlenecks ease and new domestic production kicks in.
But he added that the long-term health of the U.S. industry depends on avoiding import growth, which has driven the downside of past bullish and bearish cycles for steelmakers.
Millett, who also chairs the assembly, said in the first part of 2022, "We're starting to see inventories rebound a little bit and we're starting to see import volumes increase a bit, so it would be natural to see prices reverse." said.
Demand for all kinds of metals fell early in the pandemic, but then recovered much faster and rose to higher levels than anyone expected. Now the focus is shifting to the Biden administration's ambitious infrastructure plan, which will require massive amounts of steel for construction projects and machinery, and another boon for domestic producers, assuming the metal is purchased from domestic producers.
Comments
No comment yet.