Economy

American steel firms' fundamentals sound for 2024: Fitch

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

Ethan Bernard is managing editor for Steel Market Update. He previously worked for American Metal Market as a copy editor in the New York office for two years, starting in 2008. Later, he copy edited AMM’s monthly magazine on a freelance basis from 2015 until 2017. With experience in financial copywriting and textbook publishing, he holds a BA in Comparative Literature from UC Berkeley, and an MFA. in Creative Writing from New York University. He can be reached at ethan@steelmarketupdate.com or 724-759-7871.