Economy
American steel firms' fundamentals sound for 2024: Fitch
Written by Ethan Bernard
November 29, 2023
Sector fundamentals for US steel companies remain solid overall for the coming year, according to ratings agency Fitch’s 2024 outlook report.
The New York-based company said it expects North American steel demand ”to grow modestly in 2024 and for new supply coming online to meet incremental demand growth and continue to displace imports.”
“US steel producers continue to pursue investments focused on expanding higher value-added production and growth through construction of new mills,” Fitch said in its report on Wednesday.
The company said it views the federal government’s Investment Infrastructure and Jobs Act (IIJA), CHIPS Act, and Inflation Reduction Act (IRA) “as tailwinds for non-residential construction spending and steel demand over the next few years.”
“In addition, Fitch expects a continued recovery in US vehicle sales driven by pent up demand as supply chain bottlenecks ease,” the ratings agency said.
Ethan Bernard
Read more from Ethan BernardLatest in Economy
SMU Community Chat: Tariff-induced panic purchases, inflation, and calculating costs
Chief executive of the Institute for Supply Management (ISM), Tom Derry highlighted how reactive buying behavior has shifted the market into a quiet demand period. Derry presented ISM data during the weekly SMU community chat.
Architecture billings still sluggish despite project inquiry uptick
The Architecture Billings Index (ABI), a leading indicator for non-residential construction activity, declined for an eighth straight month in June.
Beige Book: Tariff pressures mount, flat outlook
All districts reported “experiencing modest to pronounced input cost pressures related to tariffs, especially for raw materials used in manufacturing and construction.”
Steel exports recovered in May but still historically low
US steel exports rose 10% from April to May but remained low compared to recent years. This came just one month after exports fell to the lowest level recorded in nearly five years.
AISI: Raw steel production ticks up near recent high
The volume of raw steel produced by US mills inched higher last week, according to the American Iron and Steel Institute (AISI). After steadily increasing in April and May, domestic mill output stabilized in early June and has remained historically strong since.