The President’s steel tariffs marked the U.S. steel industry’s best year in nearly a decade, with steel prices remaining high and corporate profits at record levels.
However, us steel prices have fallen significantly since the start of the year as the market has gradually returned to reason and steelmakers’ second-quarter earnings have fallen short of expectations.Even with tariffs, high-cost producers are feeling the pinch, with USSteel announcing cuts.
Statistically, 2018 was a record year for the U.S. steel industry.
However, in 2019, the situation began to change, mainly reflected in the decline of steel prices. After the introduction of steel tariffs, the us steel supply was not greatly affected, and downstream customers began to deal with inventory, reducing the amount of steel purchases.At the same time, slower growth in cars, energy and construction is also having an impact on demand.The combination of falling demand and rising us steel production has led to a glut of steel and a sharp fall in prices in the us since the start of the year.
Now: start cutting back. U.S. steel company USSE will continue to suffer from increased imports, weak demand and higher costs, the company said.
Future: not so good. Some analysts expect U.S. steel capacity to grow 20% over the next few years, peaking in 2022.In the short term, the price of steel in the United States will remain basically stable, hot rolled coil at $650 / ton ~ $750 / ton.However, by 2021 ~2022, the price of hot rolled coil in the United States will fall to $550 ~ $660 per ton.That will have a big impact on the bottom line of U.S. steel producers.Until then, no amount of protection by the us government will help.