American steel firms' fundamentals sound for 2024: Fitch

Written by Ethan Bernard

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

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